Research Article
Volume 6 Issue 6 - 2020
Economic Analysis of the Hand Moved Sprinkler Irrigation System: A Case Study of a Vegetable Farm in Quebec
Mariella Marmanillo1 and Suren Kulshreshtha2*
1Research Assistant, Department of Agricultural and Resource Economics, University of Saskatchewan, Saskatoon, Canada
2Professor, Department of Agricultural and Resource Economics, University of Saskatchewan, Saskatoon, Canada
*Corresponding Author:Suren Kulshreshtha, Professor, Department of Agricultural and Resource Economics, University of Saskatchewan, Saskatoon, Canada.
Received: April 09, 2020; Published: May 27, 2020




Abstract

Irrigation has been promoted as one of the best adaptation measure under climate change. In Eastern Canada, average temperatures are expected to increase, coupled with variable precipitation that may not exceed the evaporation rate. Frequency of dry situation during crop growth period is expected to be higher. This study was developed to examine the financial performance of irrigation on a vegetable farm in Quebec to cope with such a situation. The analysis was undertaken from a producer’s accounting stance. Three measures of financial performance - Net present value, Benefit-cost ratio, and Payback period, were used. Two types of technologies were included in this evaluation: One, Base technology where there was no irrigation provided to the crops; and Two, Beneficial Management Practice of providing irrigation water to the crops using an overhead sprinkler system of a hand-move type. The farm grew carrots and onions in an intercropping system - half the field was for devoted to carrots, and the other half for onions. Results suggest that irrigating vegetables crops (such as carrots and onions) provided higher net present value over the 15 year life. The irrigation technology generated an additional $10,932 per ha over the life of the project, coupled with a benefit-cost ratio of 2.1. The payback period for the initial investment was estimated to be very short - only 1.2 years. These results were found to be robust as under most of the changes (change in price of products, discount rate, cost of initial investment) irrigation maintained its higher level of net returns over no irrigation situation. The only exception was that under the prediction that vegetable yields would be reduced under climate change, irrigation loses its financial attractiveness.

Keywords:Irrigation; Vegetable Production; Net Present Value; Benefit-Cost Ratio; Financial Performance

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Citation: Mariella Marmanillo and Suren Kulshreshtha. “Economic Analysis of the Hand Moved Sprinkler Irrigation System: A Case Study of a Vegetable Farm in Quebec”. EC Agriculture 6.6 (2020): 92-109.

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