Evaluate the economics of adding center pivot irrigation. Compare dryland vs. irrigated yields, estimate system and operating costs, and find your payback period.
Typical quarter section: 130 acres under pivot
Quarter mile = 1,320 ft
Depth to water table
Cost Per Acre
$900
Total System Cost
$117,000
130 acres
Pump Size Needed
74 HP
Well depth: 200 ft
Payback Period
2.8 yrs
Energy Cost
$8,251
$63/acre
Total Annual Cost
$8,771
$67/acre
Net Annual Benefit
$41,279
Additional revenue minus operating cost
| Metric | Dryland | Irrigated | Difference |
|---|---|---|---|
| Yield per Acre | 140 | 210 | +50% |
| Gross Revenue (130 ac) | $100,100 | $150,150 | +$50,050 |
| Annual Operating Cost | $0 | $8,771 | -$8,771 |
| Net Annual Benefit | — | — | $41,279 |
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Center pivot irrigation typically increases crop yields by 20-40% over dryland farming. For corn, irrigated yields average 200+ bu/acre compared to 130-160 bu/acre dryland. The key question is whether the yield improvement justifies the $800-$1,200/acre system cost plus annual operating expenses.
| Metric | Typical Range |
|---|---|
| System cost per acre | $800-$1,200 |
| Annual energy cost | $30-$80/acre |
| System lifespan | 20-30 years |
| Yield improvement | 20-40% |
| Typical payback | 4-8 years |
Well depth is the biggest variable in operating cost. A 400-foot well requires significantly more pumping energy than a 100-foot well. Electricity rate and crop price are the next most impactful variables. Higher crop prices shorten payback dramatically.