How Economic Factors Affect the Profitability of Center Pivot Sprinkler and SDI Systems

In much of the Great Plains, the rate of new irrigation development is slow or zero. Since the 1970s there has been a dramatic shift in irrigation methods in the Great Plains region, as center pivot sprinkler irrigation systems have become the predominant technology, having replaced much of the furrow- irrigated base. In addition, a small yet increasing amount of subsurface drip irrigation (SDI) has been installed. Although SDI systems represent less than 1 percent of the irrigated area, producer interest still remains high because of their greater irrigation efficiency and irrigated water application uniformity. As irrigation systems need to be upgraded or replaced, available irrigated water sources become more scarce, and farm sizes become larger, there will likely be a continued interest in and momentum toward conversion to modern pressurized irrigation systems. Irrigation system investment decisions will be affected by both the physical characteristics of the irrigation systems being considered and the economic environment that irrigated crop enterprises are operating within. Ke