Can It Pay To Irrigate Pasture in Wisconsin?

1. Can It Pay To Irrigate Pasture in Wisconsin? Alex CrockfordUniversity of Wisconsin-Extension Langlade County Agricultural Agent Brian NischkeGolden Sands Resource Conservation and Development Technician Thomas S. KrieglUniversity of Wisconsin Center for Dairy ProfitabilityUniversity of Wisconsin-Extension See http://cdp.wisc.edu for more information National Farm Business Management Conference Overland Park, Kansas, June 9 - 13, 2013

3. Introduction • Pasture can be economical source of feed. • Can irrigation pay in areas where most crops are grown without irrigation? • Can irrigation pay on “low value” crops? • 2012 increased interest in irrigation.

5. To help answer questions: Golden Sands Resource, Conservation & Development Inc. (RC&D) Grazing Lands Conservation Initiative (GLCI) grant (Research project 545, Feasibility of Dairy Pasture Irrigation on Wisconsin’s Central Sands) Purchased two 12-pod K-line irrigation lines for installation Paul Onan’s75 cow dairy farm near Stevens Point, Wisconsin in 2009. Paul Onaninstalled a new six-inch well drilled 103 feet deep. The well can supply as many as three pod lines. Theoretically, one pod line could water 20 acres if used constantly.

7. Combinations of Intensity of Use and Land Area Irrigated per Day/per Week and Impact on per Acre Annual Ownership Cost Using One or Two 12-Pod K-Lines

8. Production Response • Measured in 2009 & 2010 • Irrigated and non-irrigated: • rainfall • quantity yield • quality yield • First pass July 1, 2009 • Last pass Sept 24, 2009 • 7.75 passes not all continuous

9. Stark Contrast Typical application rate 1” – 1 ½ “ in 12 hours

10. Production Response 30 year Average Rain June 15th-Sept 30th 15.5 inches 2009 Rain June 15th-Sept 30th 7.5 1.5 TDM increase 2010 Rain June 15th-Sept 30th 24.5 no response 2011 weather similar to 2010, but not measured 2012 weather worse than 2009, but not measured Watered continuously on 30 acres from June 15th to early August 2012 8-9 passes (plus 2 passes after August 1st) Yield increase likely higher than 2009

11. Investment in Paul Onan’s Irrigation System

12. Analyzing Annual Ownership Cost • Per acre & acre inch cost based on 10, 20, 30, and 40 acres watered • Depreciation – 20 years • Interest • Repairs • Taxes • Insurance • Land cost & time value of money not included

13. Operating costs based on actual costs in 2009 • plus unpaid labor • plus interest on operating cost • operating cost per “pass,” per acre, and per acre inch • Seven to eight “passes” in 2009

14. Potential Economic Impact of Irrigating Based on Eight Scenarios • Several factors limited the production response and economic performance in 2009. • Delays in implementation • Inexperience • Research requirements • Since data was only collected for two years, eight potential scenarios were examined to evaluate the economic performance of the irrigation system over a longer period of time.

15. Potential Economic Impact of Irrigating Based on Eight Scenarios 1.5 ton DM yield gain at 150 RFV from 20 acres – the original reported 2009 results 1.5 ton DM yield gain at 150 RFV from 40 acres 1.5 ton DM yield gain (half at 150 RFV and half at vegetative stage) from 20 acres 1.5 ton DM yield gain (half at 150 RFV and half at vegetative stage) from 40 acres Four more scenarios repeat the above scenarios with a yield response of 1.75 ton DM yield gain per acre, assuming irrigation started two weeks earlier (and longer) as hindsight says it should have in 2009.

16. MIRG by Dairy Increases Pasture Value • Practical Way to harvest forage at high value vegetative stage • Vegetative stage tall grasses – 10-14 inches • High protein-- high energy feed • Milk value of yield increase

17. Potential Economic Impact of Irrigating Based on Eight Scenarios * Operating costs are higher in Scenarios 5-8 due to additional rounds of irrigating.

18. Years of response needed for irrigation to break even in eight scenarios. *Column E = Ratio of Column C to Column D Column C in scenario 1 represents the economic gain in 2009. Column D in scenario 1 represents the annual cost in 2010.

19. Collectively, the scenarios illustrate three factors that can improve the economic performance of the irrigation system, which include: Increasing the yield response increases the economic benefit Increasing the use of the system up to full capacity increases the economic benefit Using forage at the highest quality level increases the economic benefit.

20. Conclusions Without a production response, no investment in irrigation would pay. Paul Onan’s Rosholt sandy loam soil has a relatively low water holding capacity. Therefore, an irrigation yield response is more likely from it than from many other Wisconsin soils. Irrigation won’t pay for everyone. However, since Paul Onan experiences 2009 conditions (or worse) at least once every three years, and since the gain projected for several scenarios appear doable, it is likely that Paul Onan’s irrigation system will pay for itself sooner than its 20-year amortization period.

21. Recommendations and Precautions Inexperienced irrigation managers usually wait too long before starting to irrigate and forfeit some yield response. The operating cost for two acre inches was $21.25 in 2009. It would only take a dry matter yield increase of 283 lbs. of dry matter valued at $150 per ton to pay the operating cost for the two inches of water. More fertilizer will likely be required to consistently achieve higher yields from irrigation over a period of several years. Like any other capital investment, an irrigation system is more likely to pay for itself if used close to full capacity.

22. Recommendations and Precautions (cont.) 5. Even if irrigation will pay for itself, look to see if there would be another way to invest those dollars for a higher return. 6. This study happened to use the K-Line system. The same economic principles apply regardless of the irrigation equipment or system used. 7. This study did not attempt to measure any environmental impacts associated with irrigation.

23. Recommendations and Precautions (cont.) • Before investing in an irrigation system, learn as much as you can about the principles of irrigation, the characteristics of your soils, and your micro climate. The National Resource Conservation Service (NRCS) Report: Irrigation Water Requirements: Crop Data Summary. http://www.nrcs.usda.gov/wps/portal/nrcs/detailfull/national/water/manage/?&cid=nrcs143_010855 I an excellent source of this information. • With this knowledge, try to project your potential costs and gains before investing. Your County Agricultural Agent can help find the information.

24. Can It Pay To Irrigate Pasture in the Midwest or Northeast USA? Thomas S. KrieglUniversity of Wisconsin Center for Dairy ProfitabilityUniversity of Wisconsin-ExtensionBrian NischkeGolden Sands Resource Conservation and Development TechnicianAlex CrockfordUniversity of Wisconsin-Extension Langlade County Agricultural AgentSee http://cdp.wisc.edu for more information 6th National USDA Small Farm Conference Memphis, TN September 18-20, 2012

25. Pasture Response to Irrigation Summer 2009 Consumable Tons DM/Acre *Kilograms of dry matter per hectare

26. Pasture Response to Irrigation Summer 2010 Consumable Tons DM/Acre *Kilograms of dry matter per hectare