EQUIPMENT
With numerous equipment and technology options available on the market, how can you determine what will provide ROI in your operation?
P The basics
First, what is precision irrigation? It is the implementation of advancing technology, including sensors, telemetry, nozzle control or other data device that provides live or up-to-date information to aid in making a management decision in real time for the purpose of optimizing water use.
After all, water is a finite resource, and as irrigation managers, we owe it to our-
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recision has been a popular term and point of emphasis in the ag sector for the last few years. This focus has led to increased
investment, research and development. It presents a unique challenge to you as the ag end user. With all the options available in the market, it can be overwhelming to navigate and determine what really matters to your operation and what can provide a return on investment.
With a focus on irrigation, let’s consider what is available and how to decide if a product or service meets the standard to stay on your farm long term.
selves, our neighbors and future genera- tions to manage this resource as efficient- ly as possible for sustainability. Did you know it takes just over 3.2 million gallons of water to apply 1 inch to 120 acres? Now, scale that up to the number of inches your crop needs in a growing season!
How does this tie into ROI? Think about the difference in the value of your land as irrigated vs. nonirrigated and how using management techniques to extend the longevity of your water source can affect your net worth and earning potential.
Benchmarking value
I use ROI to calculate value in an operation with the following equation: ROI = value gained ÷ cost of implementation. Valued gained can be a yield or quality improve- ment, a cost savings, or a combination. Cost of implementation is the direct expense added.
For example, a service that costs $10 per acre yields an increase in production worth $17.50 per acre, so $17.50 value gained ÷ $10 cost of implementation = $1.75 gain per dollar spent. With a ratio of 1.75:1, this looks to be a good investment. If less than 1:1, it is not sustainable.
Winter 2020 | Irrigation TODAY 9
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