Cost-benefit analysis of automated furrow irrigation in the Burdekin

Our project developed and demonstrated the benefits of automated furrow irrigation in the Australian sugar industry. Three field sites were instrumented, covering a range of farm layouts, pumping infrastructure and water sources. The three properties have each realised different benefits from the system, including a reduction in energy costs, labour costs, water costs and potential yield increases. The project undertook a cost benefit analysis of these three sites and across a range of scenarios to determine the return on investment and the payback period of the automation system. The system costs ranged between $594 and $2,211 per hectare, largely due to the area irrigated by each control valve. The consistent major benefit across the sites was the labour savings, but other savings such as vehicle costs, energy costs and water costs were more site specific. The general outcome was that the economic benefits were able to recover costs well within the 7-year life of the system, but payback periods were much more favourable when the grower was able to improve irrigation management and, as a result, achieve a small crop yield increase. We present a summary of the outcomes of that cost-benefit analysis. Key words Automation, furrow irrigation, labour, energy, NPV, payback period