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EFFECTS OF RECENT CORN AND ENERGY PRICES ON IRRIGATION INVESTMENT IN THE HUMID CLIMATE OF TENNESSEE

  • CHRISTOPHER N. BOYER (a1), JAMES A. LARSON (a2), ROLAND K. ROBERTS (a2), M. ANGELA McCLURE (a3), DONALD D. TYLER (a4) and S. AARON SMITH (a1)...

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.

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Copyright

This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/3.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.

Corresponding author

*Email: cboyer3@utk.edu

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Keywords

EFFECTS OF RECENT CORN AND ENERGY PRICES ON IRRIGATION INVESTMENT IN THE HUMID CLIMATE OF TENNESSEE

  • CHRISTOPHER N. BOYER (a1), JAMES A. LARSON (a2), ROLAND K. ROBERTS (a2), M. ANGELA McCLURE (a3), DONALD D. TYLER (a4) and S. AARON SMITH (a1)...

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