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Effects Of Recent Corn And Energy Prices On Irrigation Investment In The Humid Climate Of Tennessee

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  • BOYER, CHRISTOPHER N.
  • LARSON, JAMES A.
  • ROBERTS, ROLAND K.
  • McCLURE, M. ANGELA
  • TYLER, DONALD D.
  • SMITH, S. AARON

Abstract

Little is known about the impact of corn and energy prices on the profitability of irrigating corn in Tennessee. We evaluated the probability of a positive net present value (NPV) for center-pivot irrigation in Tennessee corn production. Three corn price series were employed to evaluate the effects of the shift in corn prices on the feasibility of irrigation. The recent rise in corn prices increased the probability of NPV being positive for irrigation investment. Future corn prices will need to remain high for investment in center-pivot irrigation to remain profitable under Tennessee growing conditions.

Suggested Citation

  • BOYER, CHRISTOPHER N. & LARSON, JAMES A. & ROBERTS, ROLAND K. & McCLURE, M. ANGELA & TYLER, DONALD D. & SMITH, S. AARON, 2015. "Effects Of Recent Corn And Energy Prices On Irrigation Investment In The Humid Climate Of Tennessee," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 47(1), pages 105-122, February.
    • Handle: RePEc:cup:jagaec:v:47:y:2015:i:01:p:105-122_00
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    Cited by:

    1. Agnieszka Karczmarczyk & Agnieszka Bus & Anna Baryła, 2021. "Assessment of the Efficiency, Environmental and Economic Effects of Compact Type On-Site Wastewater Treatment Plants—Results from Random Testing," Sustainability, MDPI, vol. 13(2), pages 1-15, January.
    2. Sharma, Vasudha & Irmak, Suat, 2020. "Economic comparisons of variable rate irrigation and fertigation with fixed (uniform) rate irrigation and fertigation and pre-plant fertilizer management for maize in three soils," Agricultural Water Management, Elsevier, vol. 240(C).

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