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14 <br />Augmented Deficit Irrigation Economics <br />Net Profit on <br />Farm with <br />deficit irrig. <br />Lease of <br />saved CU by <br />M&I <br />Net Profit for <br />fully irrigated <br />increased by <br />X% <br />+ = <br /> <br />EXAMPLES FOR 20% INCREASE IN NET PROFIT; Lease rates $/af of CU/ET <br /> Lease indexed to the price of corn <br /> $3.40 / Bu corn $5.00 / Bu corn <br />78% Yld at 63% ET (WPR=1.24) $133/af $345/af <br /> 85% Yld at 63% ET (WPR=1.35) $111/af $288/af <br />80% Yld at 50% ET (Target, WPR=1.6) $94/af $243/af <br />Fallow (no yield on farm) $187/af $487/af <br /> <br /> <br /> <br /> <br />----Increases in water productivity (more Bu/ET”) on farm with deficit means more <br />affordable to M&I <br />----M&I gets the certainty/security for a firm future supply because always farmer interest <br />from incentive due to X% increase in net profits