The on farm costs and returns of irrigation development

Abstract

This Report aims to analyse the "on farm" costs and returns of a Proposed Irrigation Development in Mid Canterbury. The Land and Area is recognised as being suitable for irrigation development. Two detailed On Farm Development Programmes are cash flowed over a three-year programme using a case study property of 200 hectares (total). These Financial Projections are compared with the status quo as well as some other alternatives (being the purchase of additional dryland plus the effect of converting the irrigated land to dairy). Mid Canterbury has a long history of irrigation dating back to the 1930's when the Rangitata Diversion Race (RDR) was first formed. The Irrigation Development, which has stemmed from the RDR plus the use of underground wells puts Mid Canterbury at the leading edge of irrigation knowledge for New Zealand. There is a proven infrastructure for irrigation development plus an excellent knowledge of how farmers can use irrigation as a profitable economic tool. There is a trust between farmers and irrigation scheme administrators. As well there is a trust of irrigation from the financial institutions.