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Probability of Irrigated Corn Being Profitable in a Humid Region

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  • Boyer, Christopher N.
  • Larson, James A.
  • Roberts, Roland K.
  • McClure, Angela T.
  • Tyler, Donald D.
  • Smith, S. Aaron

Abstract

We used Monte Carlo simulation to evaluate the probability of the net present value (NPV) being positive for investing in irrigation for corn production in Tennessee. The probability of NPV>0 ranged from 78-89% for a 200-acre field using 1994-2013 prices, and 87-99% for a 125-acre field using 2006-2013 prices.

Suggested Citation

  • Boyer, Christopher N. & Larson, James A. & Roberts, Roland K. & McClure, Angela T. & Tyler, Donald D. & Smith, S. Aaron, 2014. "Probability of Irrigated Corn Being Profitable in a Humid Region," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162470, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea14:162470
    DOI: 10.22004/ag.econ.162470
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