Agricultural Water Management 174 (2016) 61–65 Contents lists available at ScienceDirect Agricultural Water Management jou rn al hom ep age: www.elsevier.com/locate/agwat Economic evaluation of using surge valves in furrow irrigation of row crops in Louisiana: A net present value approach Naveen Adusumilli a,∗ , Stacia Davis a , Dan Fromme b a Louisiana State University Agricultural Center, Red River Research Station, Bossier City, LA 71112, United States b Louisiana State University Agricultural Center, Dean Lee Research Station, Alexandria, LA 71602, United States a r t i c l e i n f o Article history: Received 14 October 2015 Received in revised form 22 April 2016 Accepted 27 April 2016 Available online 4 May 2016 Keywords: Irrigation Efficiency Net present value Profitability Surge irrigation a b s t r a c t Addressing irrigation water efficiency continues to emerge as one of the potential solutions to mini- mize irrigation water use, improve water quality, and enhance soil health. Despite the clear importance of financial information in decision-making regarding adoption of irrigation tools, little information is available regarding the profitability outlook of such adoption. Lack of assessment of costs and returns could lead to producers resisting adoption citing profit reductions. Hence, a cost-assessment using the financial information is necessary to evaluate the tools’ economic outlook. By using long-term projec- tions of input prices, crop yield, and crop prices, this paper develops a financial analysis of irrigation using surge valves by calculating annual cash flows and net present value. The analysis is based on demonstra- tion plot results and anecdotal estimates related to water savings and yield improvements in corn and soybeans in Louisiana and Mississippi. The positive estimates for net present value indicate that an invest- ment in irrigation efficiency improvement is an economically sound choice. These estimates can enhance the adoption of irrigation-efficiency improvement practices by providing an initial understanding of the overall profitability independent of short-term management decisions. © 2016 Elsevier B.V. All rights reserved. 1. Introduction Gravity systems are the most common irrigation method in Louisiana. There are approximately 0.5 million hectares that receive water delivered through gravity systems, of which approx- imately half of those are irrigated through polypipe and the remaining half by open surface ditches and above surface pipes (USDA-FRIS, 2014). It is well documented that irrigation water application efficiency is relatively lower in furrow irrigation (Amosson et al., 2011) compared to other application meth- ods such as center pivots/linear systems and drip irrigation. Conversion to one of the more efficient systems is an option; however, such a change often involves substantial upfront costs. Improving irrigation efficiency 1 using new technologies is becom- ing an important aspect of gravity systems. Any improvements in water management provide a diversity of benefits, not just to food production (Knox et al., 2010). Agriculture sits at the ∗ Corresponding author. E-mail addresses: nadusumilli@agcenter.lsu.edu (N. Adusumilli), sdavis@agcenter.lsu.edu (S. Davis), dfromme@agcenter.lsu.edu (D. Fromme). 1 One of the challenges in demonstration plot research is the issue of farmers imi- tating extension agents’ practices and timing of production practices. Such imitation could lead to minimal differences in irrigation water use, irrigation timing, and crop yields. interface between the environments and society. Improving irrigation efficiency could mean saving water and promoting envi- ronmental sustainability. Irrigation using surge valves in furrow irrigation of row crops is the focus of the analysis in this paper. A surge valve is used in furrow irrigation to run water down the field with on and off cycles of water delivered at the head of the furrow (Izuno and Podmore, 1986; Schaible and Aillery, 2012). Surge valves have been proven to improve irrigation water use efficiency in gravity systems (Horst et al., 2007; Shock et al., 1997). The method of irrigation has demon- strated its merits by reducing irrigation time, increasing infiltration uniformity (Podmore and Duke, 1982), and reducing nutrient loss to runoff from agricultural fields (Evans et al., 1995). On-farm demon- stration of irrigation using surge valves in the Lower Rio Grande Valley has realized water savings as high as 50% in sugarcane and around 25% in cotton and corn compared to continuous irrigation (TexasAWE, 2013). Research comparing surge to continuous water- ing in furrow irrigation in fine loam soils has shown water savings in the range of 40–50% (Mitchell and Stevenson, 1993). Another research has shown water savings in the range of 20–30% (Varlev et al., 1998). Better soil moisture distribution along the furrow is one of the principal advantages claimed for irrigation using surge valves (Purkey and Wallender, 1988). Higher water application uniformity provides better soil nutrient distribution and conse- quently leads to higher crop yields (Pang et al., 1997). In a recent http://dx.doi.org/10.1016/j.agwat.2016.04.024 0378-3774/© 2016 Elsevier B.V. All rights reserved.