Can It Pay To Irrigate Pasture in
Wisconsin?
Alex Crockford
University of Wisconsin-Extension Langlade County
Agricultural Agent
Brian Nischke
Golden Sands Resource Conservation and Development
Technician
Thomas S. Kriegl
University of Wisconsin Center for Dairy Profitability
University of Wisconsin-Extension
See http://cdp.wisc.edu for more information
National Farm Business Management Conference
Overland Park, Kansas,
June 9 - 13, 2013
Introduction
_______________________________________________
• Pasture can be economical source of feed.
• Can irrigation pay in areas where most
crops are grown without irrigation?
• Can irrigation pay on “low value” crops?
• 2012 increased interest in irrigation.
To help answer questions:
_______________________________________________
Golden Sands Resource, Conservation & Development Inc.
(RC&D)
Grazing Lands Conservation Initiative (GLCI) grant (Research
project 545, Feasibility of Dairy Pasture Irrigation on
Wisconsin’s Central Sands)
Purchased two 12-pod K-line irrigation lines for installation
Paul Onan’s 75 cow dairy farm near Stevens Point, Wisconsin
in 2009.
Paul Onan installed a new six-inch well drilled 103 feet deep.
The well can supply as many as three pod lines.
Theoretically, one pod line could water 20 acres if used
constantly.
Combinations of Intensity of Use and Land Area Irrigated per
Day/per Week and Impact on per Acre Annual Ownership Cost
Using One or Two 12-Pod K-Lines
_______________________________________________
Daily Moves
Watering Hours per Move
Inches of Water per Acre per Move
1
6
1
2
6
1
3
6
1
4
6
1
Theoretical Acres Watered per Move with 1 K-Line
Theoretical Acres Watered per Day with 1 K-Line
Theoretical Acres Watered per Week with 1 K-Line
Onan
per Acre Annual Ownership Cost with 1 K-Line*
Table 2*
0.75
0.75
5.25
$343
0.75
1.5
10.5
$172
0.75
2.25
15.75
$114
0.75
3
21
$86
Theoretical Acres Watered per Move with 2 K-Lines
Theoretical Acres Watered per Day with 2 K-Lines
Theoretical Acres Watered per Week with 2 K-Lines
Onan per Acre Annual Ownership Cost with 2 K-Line**
1.5
1.5
11
$214
1.5
3
21
$107
1.5
4.5
31.5
$71
1.5
6
42
$54
Production Response
_______________________________________________
Measured in 2009 & 2010
Irrigated and non-irrigated:
• rainfall
• quantity yield
• quality yield
First pass July 1, 2009
Last pass Sept 24, 2009
7.75 passes not all continuous
Typical application rate 1” – 1 ½ “ in 12 hours
Stark Contrast
Production Response
_______________________________________________
30 year Average Rain June 15th-Sept 30th
2009 Rain June 15th-Sept 30th
2010 Rain June 15th-Sept 30th
15.5 inches
7.5
1.5 TDM increase
24.5
no response
2011 weather similar to 2010, but not measured
2012 weather worse than 2009, but not measured
Watered continuously on 30 acres from June 15th to early August 2012
8-9 passes (plus 2 passes after August 1st)
Yield increase likely higher than 2009
Investment in Paul Onan’s Irrigation
_______________________________________________
System Investment Cost
Initial Cost
4-500 ft rolls 3” supply pipe
$2,500.00
1200ft-40mm K-line tubing
$1,215.00
24 K-line Pods with sprinklers
Miscellaneous K-line Parts
$2,288.00
$725.00
Installation Labor and Sales Tax
$2,900.00
Total Cost Of Irrigation Equipment
$9,628.00
Investment Cost Pump
$5,800.00
Investment Cost 103’ Well
$6,755.00
Total Investment In Well, Pump And Water
Delivery Equipment
$22,183.00
System
Analyzing Annual Ownership
_______________________________________________
Cost
Per acre & acre inch cost based on 10, 20, 30, and 40 acres watered
• Depreciation – 20 years
• Interest
• Repairs
• Taxes
• Insurance
Land cost & time value of money not included
Operating costs based on actual
_______________________________________________
•
•
•
•
costs in 2009
plus unpaid labor
plus interest on operating cost
operating cost per “pass,” per acre, and per acre inch
Seven to eight “passes” in 2009
Potential Economic Impact of Irrigating
Based on Eight Scenarios
_______________________________________________
Several factors limited the production response and economic
performance in 2009.
• Delays in implementation
• Inexperience
• Research requirements
Since data was only collected for two years, eight potential scenarios
were examined to evaluate the economic performance of the
irrigation system over a longer period of time.
Potential Economic Impact of Irrigating
Based on Eight Scenarios
_______________________________________________
1. 1.5 ton DM yield gain at 150 RFV from 20 acres – the original
reported 2009 results
2. 1.5 ton DM yield gain at 150 RFV from 40 acres
3. 1.5 ton DM yield gain (half at 150 RFV and half at vegetative stage)
from 20 acres
4. 1.5 ton DM yield gain (half at 150 RFV and half at vegetative stage)
from 40 acres
Four more scenarios repeat the above scenarios with a yield
response of 1.75 ton DM yield gain per acre, assuming irrigation
started two weeks earlier (and longer) as hindsight says it should have
in 2009.
MIRG by Dairy Increases Pasture Value
_______________________________________________
•Practical Way to harvest forage at high value
vegetative stage
•Vegetative stage tall grasses – 10-14 inches
•High protein-- high energy feed
•Milk value of yield increase
Potential Economic Impact of Irrigating
Based on Eight Scenarios
_______________________________________________
(2009 Results) 1
2
3
4
20
40
20
40
Yield
Increase
Ton
Ton/Acre
1.5
1.5
1.5
1.5
5
6
7
8
20
40
20
40
1.75
1.75
1.75
1.75
Scenario #
Acres
Irrigated
Value of
Ownership *Operating
Yield
*Total Cost
Cost
Cost
Increase
$/Acre
$/Acre
$/Acre
$/Acre
$258.75
$107.06
$82.34
$189.40
$258.75
$53.53
$82.34
$135.87
$409.78
$107.06
$82.34
$189.40
$409.78
$53.53
$82.34
$135.87
2
$301.85
$107.06
$103.59
$210.65
$301.85
$53.53
$103.59
$157.12
$478.11
$107.06
$103.59
$210.65
$478.11
$53.53
$103.59
$157.12
* Operating costs are higher in Scenarios 5-8 due to additional rounds of irrigating.
Gain From
Irrigating
$/Acre
$69.35
$122.88
$220.38
$273.91
$91.20
$144.73
$267.46
$320.99
Years of response needed for irrigation to
break even in eight scenarios.
_______________________________________________
A
B
Scenario
1
2
3
4
5
6
7
8
Acres
20
40
20
40
20
40
20
40
C
D
Net Gain from
Per Acre Ownership
Irrigation $/acre and Operating Cost
in Dry Year (2009) in One Year of No
69.35
126.68
122.88
73.15
220.38
126.68
273.91
73.15
91.2
126.68
144.73
73.15
267.46
126.68
320.99
73.15
E
Years of Response
Needed for
Irrigation to Break
2 of 3
1 of 2.68
1 of 2.74
1 of 4.74
3 of 5
1 of 3
1 of 3
1 of 5.39
*Column E = Ratio of Column C to Column D
Column C in scenario 1 represents the economic gain in 2009.
Column D in scenario 1 represents the annual cost in 2010.
Collectively, the scenarios illustrate three factors that can improve
the economic performance of the irrigation system, which include:
_______________________________________________
1.
Increasing the yield response increases the economic benefit
2.
Increasing the use of the system up to full capacity increases the
economic benefit
3.
Using forage at the highest quality level increases the economic
benefit.
Conclusions
_______________________________________________
1. Without a production response, no investment in irrigation
would pay.
2. Paul Onan’s Rosholt sandy loam soil has a relatively low
water holding capacity. Therefore, an irrigation yield response
is more likely from it than from many other Wisconsin soils.
3. Irrigation won’t pay for everyone. However, since Paul Onan
experiences 2009 conditions (or worse) at least once every three
years, and since the gain projected for several scenarios appear
doable, it is likely that Paul Onan’s irrigation system will pay
for itself sooner than its 20-year amortization period.
Recommendations and Precautions
_______________________________________________
1.
Inexperienced irrigation managers usually wait too long before
starting to irrigate and forfeit some yield response.
2.
The operating cost for two acre inches was $21.25 in 2009. It
would only take a dry matter yield increase of 283 lbs. of dry
matter valued at $150 per ton to pay the operating cost for the
two inches of water.
3.
More fertilizer will likely be required to consistently achieve
higher yields from irrigation over a period of several years.
4.
Like any other capital investment, an irrigation system is more
likely to pay for itself if used close to full capacity.
Recommendations and Precautions
_______________________________________________
5.
Even if irrigation will pay for itself, look to see if there
would be another way to invest those dollars for a higher
return.
6.
This study happened to use the K-Line system. The same
economic principles apply regardless of the irrigation
equipment or system used.
7.
This study did not attempt to measure any environmental
impacts associated with irrigation.
(cont.)
Recommendations and Precautions (cont.)
8.
Before investing in an irrigation system, learn as much as
you can about the principles of irrigation, the
characteristics of your soils, and your micro climate. The
National Resource Conservation Service (NRCS) Report:
Irrigation Water Requirements: Crop Data Summary.
http://www.nrcs.usda.gov/wps/portal/nrcs/detailfull/nation
al/water/manage/?&cid=nrcs143_010855 I an excellent
source of this information.
9.
With this knowledge, try to project your potential costs and
gains before investing. Your County Agricultural Agent can
help find the information.
Can It Pay To Irrigate Pasture in
the Midwest or Northeast USA?
_______________________________________________
Thomas S. Kriegl
University of Wisconsin Center for Dairy Profitability
University of Wisconsin-Extension
Brian Nischke
Golden Sands Resource Conservation and Development
Technician
Alex Crockford
University of Wisconsin-Extension Langlade County
Agricultural Agent
See http://cdp.wisc.edu for more information
6th National USDA Small Farm Conference
Memphis, TN
September 18-20, 2012
Pasture Response to Irrigation Summer 2009
Consumable Tons DM/Acre
Onan
kg
DM/ha*
lb DM/ac tons/acre
Non-irrigated
1140
1016
0.51
Upland irrigated
4371
3895
1.95
Lowland irrigated
4512
4005
2
Average irrigated
4441
3950
1.98
*Kilograms of dry matter per
hectare
Pasture Response to Irrigation Summer
2010 Consumable Tons DM/Acre
Onan
kg
DM/ha*
lb DM/ac tons/acre
Non-irrigated
4153
3705
1.85
Upland irrigated
3767
3361
1.68
Lowland irrigated
4453
3973
1.99
Average irrigated
4110
3667
1.83
*Kilograms of dry matter per
hectare