The Economic Feasibility of Implementing Irrigation in Small, Limited Resource Farming Systems

Abstract

Small farms are particularly important for local food production in the Mississippi Delta, a region identified as having substantial food deserts. In order for small farms to survive, however, management strategies are needed that simultaneously yield high value fruits and vegetables and also enable farmers to remain economically solvent. The research reported here tested the economic and productive feasibility of implementing irrigation in sweet potato (Ipomoea batatas L. Lam) production in Mississippi US. Historical production records and management expenses were used to determine sweet potato production expenses and returns over a ten-year period from 2002 - 2011. Crop water use over this 10-year period was calculated from historical weather records. Yield improvements resulting from implementing irrigation were then used to determine potential increased return on investment. Irrigation costs increased yearly production expenses 3-4%, depending on pumping fuel costs. Costs associated with harvest and post-harvest processing of the greater yields added an additional 8 – 70% to production expenses, depending on yield increase. However, even very modest (10%) improvements in yield are sufficient to economically justify implementing irrigation, as the net return on investment increased by 5% or more. Irrigation is a relatively simple tool that farmers could use to enhance their management practices and maximize profits. However, access to startup capital and knowledge of irrigation management are still critically needed to assist small, limited resource farmers in adopting tools and skills that will improve the output and economic return of their production systems. The results from this research will be used to develop management tools for farmers to improve access to production information and assist in making crop management and business decisions