Have any expansion plans while crop prices are low that has any chance of showing a profit?
Pivot irrigation systems easily last 40-50+ years with very little yearly maintenance cost. What are the potential long term benefits from investment in an irrigation system today? We have an app for that.
The “Net Positive Cash Flow Over Life of System” is the money you will receive over the life of the system after repayment of the loan and above the additional cost of inputs to irrigate.
We will do the design work for a system to meet your needs at no cost. We provide you with an exact project cost and the acres you will be able to irrigate. With those two numbers you can fill in the remaining cells with your projected numbers and in an instant see the “Net Positive Cash Flow Over Life of System” and the “Average Additional Net Income Per Acre Per Year”. If you want to get an idea of the huge potential in long term benefits, you can use the “Averages” from all our pivot sales since 2008. The average project cost is $116,137 and the average acres irrigated is 98 acres. Energy cost to irrigate will vary but would be $20-30 per acre per year. The additional cost of increasing nitrogen, etc for corn varies as well but could range from $40-65 per acre. Most customers rotate corn with soybeans so enter under each one the number of years that crop will be irrigated. A very conservative number would be 20 years for each one.
Pivots are not tractors, combines, sprayers, trucks, planters, tillage tools, grain bins, buildings, etc. You need a certain mix of all those on any farming operation. BUT then you hope it rains enough and at the right time so you can make enough yield to pay for those things plus the land, plus the yearly inputs, and have something left to live on. An irrigation system is the only investment that you can make today which will increase yields enough to pay their own way from the beginning and have unbelievable long term potential even with today’s prices.