The Economic Feasibility of Automated Sub-drip Irrigation for Potato Production in Florida: A Synthesis Report

This report investigates the costs and benefits associated with the conversion from semi-enclosed seep irrigation to either automated seep or automated sub-drip irrigation for potato production in Northeast Florida. These costs and benefits are estimated at the level of the individual grower and for the public at large. The analytical tools in the report include financial budgeting and regression analysis. Cost analysis shows that an incremental conversion from manual to automated seep irrigation results in a net savings of about $7/acre. Incremental conversion to sub-drip irrigation, however, results in a net increase in annual production costs of $178/acre. Net returns are highest for the automated semi-enclosed seep system. Net revenues are sensitive to yield and price levels, the variety of potato marketed, and the timing of marketing. A regression analysis of experimental data shows that (1) yield significantly varies between the head and tail of the irrigation system, and (2) conversion from an automated seep irrigation system to an automated sub-drip system results in a loss in net revenue of $129/acre. Based on the results of the financial budgeting analysis, and in the absence of any demonstrated improvements in yield or decreases in complementary production costs, potato growers cannot be expected to convert to sub-drip irrigation. There is, however, a potential increase in net revenue of about $7/acre through automation of the current semi-enclosed seepage irrigation system. Social benefits of automated seep and sub-drip irrigation systems are comprised of lower amounts of water for irrigation (conservation) and decreased drainage flows (environmental protection); however, insufficient information is available to quantify these public benefits, and further research is required.