avg"?! .«dufil‘o... Wag .... .5".ch 14?»). r. . §$§. (my hr“:- b. y .1 . V ‘ ‘ . . . . \ muggy? at.-. ‘ . . , é. llllllllllllllllllllllll(Hill’ll’lllllllllllllll 293 01019 0837 This is to certify that the thesis entitled Risk Analysis of Subirrigation Investment Decisions in the Saginaw Bay Area of Michigan presented by Katherine Kampmann has been accepted towards fulfillment of the requirements for Mo S 0 degree in AgfiCUltural Economics {Ed/1:” Major professor Date 18 February 1993 0-7639 MS U is an Affirmative Action/Equal Opportunity Institution “—1 7 , —._ . ~ 7 7, 7 -—* 7 ,,,i LIBRARY Michigan State University PLACE N RETURN BOXtoromovothb chockoutfrom yomrooord. TO AVOID FINES return on or More data duo. DATE DUE DATE DUE DATE DUE MSU ioAn Affirmative ActioNEqmi Opportunity lmtitwon m1 RISK ANALYSIS OF SUBIRRIGATION INVESTMENT DECISIONS IN THE SAGINAW BAY AREA OF MICHIGAN BY KATHERINE KAMPMANN A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE Department of Agricultural Economics 1993 ABSTRACT RISK ANALYSIS OF SUBIRRIGATION INVESTMENT DECISIONS FOR CORN PRODUCTION IN THE SAGINAW BAY AREA OF MICHIGAN By Katherine Kampmann This thesis examines on-farm investment and operating costs and financial benefits of two improved drainage and Six subirrigation investments on a representative field in the Saginaw Bay Area of Michigan. Net present values (NPVS) are generated from a base sequence and from random sequences of corn yields Simulated from historical weather data in Michigan. Under both certainty and risk, the surface water subirrigation system at 60-ft tile Spacing is the most profitable investment. For the 1958- 87 actual weather sequence, the existing drainage-only system is dominated by two surface and one well water source subirrigation systems and dominates the other subirrigation and narrower-spaced drainage-only systems. Under random weather conditions, subirrigation with surface water at 30- and 60-ft tile spacings dominates the other systems by first or second degree stochastic dominance, so long as the price of corn remains above $2.05/bu (or $3.00/bu for the well water source). This thesis is dedicated to Jeff, who saw me through the endeavor, and my parents, who have always encouraged me to endeavor. ACKNOWLEDGMENTS I could not have completed this thesis without the help of a host of collaborators. My major advisor, Dr. Scott Swinton, provided the financial support that kept the bills paid, but more importantly with the academic support that helped shape the direction and outcome of the research. He devoted many hours advising me and making extensive comments and suggestions concerning the research and the drafts of the thesis. I feel lucky to have had such a devoted thesis advisor. Dr. Harold Belcher of the Department of Agricultural Engineering, the principal investigator for the Water Quality Impacts of Water Table Management Project, provided guidance concerning the technical aspects of subirrigation and the simulation model, DRAINMOD. Dr. Roy Black of the Department of Agricultural Economics contributed helpful comments and advice concerning the theoretical framework of the economic analysis. James LeCureux, an extension agent in Huron County, contributed greatly to this thesis through his own research on subirrigation and by providing Huron County Specific data used in the analysis. He was always available to answer the many questions I had in the initial stages of the research. Without the computer support of Brian Baer and without the soil input data provided by Martin Rosek, I could have never gotten the DRAINMOD simulations to run. iv I would also like to thank all of the many other people who provided the input data necessary to run the simulations and perform the economic analysis. These people include Dr. Fred Numberger and Dr. Jeffrey Andresen of the Department of Agriculture, Environmental Division, Department of Climatology; Jim Angel of the Midwest Regional Climate Center in Champaign, Illinois; Chip Cheschire of the Department of Biological and Agricultural Engineering at North Carolina State University; Dr. Chensheng He of the Department of Resource Development; Dr. Francis Pierce and Dr. Maurice Vitosh of the Department of Crop and Soil Sciences; the subirrigation contractors who provided cost estimates and who must remain anonymous; Neil Krieger of Michigan Valley Irrigation; and Don Long and Jim Murdock, two farmers using subirrigation in Huron County. I would also like to thank Dr. John Staatz of the Department of Agricultural Economics, who provide the financial support that helped me make it through the first two years of my Master’s program. Finally, this research was made possible through funding from the Michigan Agricultural Experiment Station under the special grant: Water Quality Impacts of Water Table Management. TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES CHAPTER 1: INTRODUCTION 1.1. Introduction 1.2. Objectives 1.3. Methods CHAPTER 2: LITERATURE REVIEW 2.1. Introduction 2.2. Technical Aspects of Subirrigation 2.2.1. Subirrigation Defined and Described 2.2.2. Soil and Land Characteristics 2.2.3. Water Availability 2.2.4. Water Quality Aspects of Subirrigation 2.3. Economic Analyses of Irrigation 2.4. Economic Evaluations and Studies of Yield with Subirrigation 2.4.1. Field Studies 2.4.1.1. Yield Analyses 2.4.1.2. Economic Analyses 2.4.2. Simulation Studies 2.4.2.1. Benefit to Drainage 2.4.2.2. Benefit to Drainage/Subirrigation 2.5. Directions for the Current Economic Analysis of Subirrigation 12 14 17 20 25 26 26 29 45 48 53 2.6. Gaps in the Study CHAPTER 3: METHODOLOGY 3.1. Introduction 3.2. Simulation 3.2.1. Simulation as a Tool in Economic Analyses 3.2.2. DRAINMOD 3.2.2.1. Model Validation 3.3. Economic Analysis 3.3.1. Base Calculations 3.3.2. Net Present Value Analysis 3.3.2.1. Theory of Profit Maximization 3.3.2.2. Procedures 3.3.3. Monte Carlo Simulation 3.3.4. Risk Analysis 3.3.4.1. Risk Efficiency Models 3.3.4.2. Application of Stochastic Dominance Criteria to Water Table Management Investment Decisions 3.3.4.3. Application of Expected Net Present Value Criteria to Water Table Management System Investment Decisions 3.4. Sensitivity Analysis CHAPTER 4: RESULTS 4.1. Simulation Results 4.1.1. Drainage Only Results 4.1.2. Subirrigation Results 4.2. Results of the Economic Analysis 4.2.1. NPV Analysis - Base Weather Sequence 4.2.2. Net Present Value and Expected Value-Variance Analysis 4.2.3. Stochastic Dominance Analysis 4.2.4. Stochastic Dominance with Respect to a Function Analysis 4.3. Sensitivity Analysis 4.3.1. Sensitivity to Potential Yield 4.3.2. Financial Parameter Sensitivity Analysis 4.3.3. 4.3.3. Investment Cost and Output Price Sensitivity Analysis “Ci 54 56 56 59 59 60 66 73 73 82 82 82 84 86 86 94 96 96 98 98 98 100 103 103 111 117 119 120 120 122 123 CHAPTER 5: SUMMARY AND CONCLUSIONS 5.1. Summary 5.2. Conclusions APPENDICES APPENDIX A: BASIC CODE FOR MONTE CARLO SIMULATION ENPV AND SDNPV CALCULATIONS FOR WTMS ANALYSIS APPENDIX B: DRAINMOD DATA INPUTS APPENDIX C: DRAINAGE ONLY SITE DESIGN APPENDIX D: SUBIRRIGATION SITE DESIGN APPENDIX E: AVERAGE MONTHLY TEMPERATURE AND PRECIPITATION FOR BAD AXE, HARBOR BEACH, AND FLINT, MICHIGAN FOR THE PERIOD 1951-1980 APPENDIX F: DRAINMOD WATER BALANCE VERIFICATION APPENDIX G: INVESTMENT COSTS APPENDIX H: SIMULATION YIELD RESULTS H1: DR20 - Drainage Only at 20-Ft Tile Spacings H2: DR30 - Drainage Only at 30-Ft Tile Spacings H3: DR60 - Drainage Only at 60-Ft Tile Spacings H4: 8120 - Subirrigation at 20-Ft Tile Spacings H5: 8130 - Subirrigation at 30-Ft Tile Spacings H6: SI60 - Subirrigation at 60-Ft Tile Spacings APPENDIX 1: SIMULATION WATER BALANCE RESULTS Il: DR20 - Drainage Only at 20-Ft Tile Spacings I2: DR30 - Drainage Only at 30-Ft Tile Spacings 13: DR60 - Drainage Only at 60-Ft Tile Spacings I4: 8120 - Subirrigation at 20-Ft Tile Spacings 15: $130 - Subirrigation at 30-Ft Tile Spacings I6: SI60 - Subirrigation at 60-Ft Tile Spacings BIBLIOGRAPHY 127 127 132 135 135 143 151 152 153 154 160 163 163 164 165 166 167 168 169 169 170 171 172 173 174 175 TABLE 2.1: TABLE 2.2: TABLE 2.3A: TABLE 2.3B: TABLE 2.4: TABLE 2.5: TABLE 2.6: TABLE 2.7: TABLE 2.8: TABLE 3.1: TABLE 3.2: TABLE 3.3: TABLE 3.4: TABLE 3.5: TABLE 3.6: TABLE 3.7: TABLE 3.8: TABLE 3.9: LIST OF TABLES Summary of Yield Results for 1987 Summary of Field Trials and Economic Analyses for 1988 Benefit to Splitting Tiles for Sugar Beet - 81 Treatment Benefit to Splitting Tiles for Sugar Beet - DR Treatment Summary of Field Trials and Economic Analyses for 1989 Summary of Field Trials and Economic Analyses for 1990 Yield and Net Return Results with Fair Surface Drainage Results for Corn for a Rains Soil: Fair Surface Drainage Results for Soybeans for a Rains Soil: Fair Surface Drainage Summary of DRAINMOD Inputs Genesee County Historic and Detrended Yield Compared with DM Yields Reese Farm Historic and Detrended Yield Compared with DM Yields Description of Investment Options Summary of Component Costs for a WTMS Total Investment and Annualized Per-Acre Investment Cost for a 40-Acre System Variable Costs Associated with Water Management Systems System Repair and Maintenance Costs Irrigated and Nonirrigated Corn Production Costs 31 34 35 36 40 44 50 52 52 63 70 71 75 77 78 8O 80 81 TABLE 3.10: TABLE 4.1: TABLE 4.2: TABLE 4.3: TABLE 4.4: TABLE 4.5: TABLE 4.6: TABLE 4.7: TABLE 4.8: TABLE 4.9: TABLE 4.10: Base Parameter Values DRAINMOD Yield Output for Drainage Only at 30-ft Tile Spacings DRAINMOD Yield Output for Subirrigation at 30-ft Tile Spacings NPV and Gross Margins - Base Weather Sequence (1958-87) NPV of WTMS Options over the Planning Horizon (1958-87) Expected NPV, SD of NPV, and Gross Margins Over DR60 Comparison of NPV and ENPV Yield Sensitivity Analysis Financial Parameter Sensitivity Analysis Output Price Sensitivity Analysis Investment Cost Sensitivity Analysis 83 100 102 104 106 112 113 121 122 124 125 Figure 2.1. Figure 2.2. Figure 3.1. Figure 3.2. Figure 3.3. Figure 3.4. Figure 3.5. Figure 3.6. Figure 3.7. Figure 3.8. Figure 4.1. Figure 4.2. Figure 4.3. Figure 4.4. Figure 4.5. Figure 4.6. Figure 4.7. LIST OF FIGURES Profile and Overhead View of a Drainage-Subirrigation System Schematic of Water Table Management Plot of Genesee Historic Yields and Estimated Yield with Residual Plot Plot of Reese Farm Historic Yields and Estimated Yield with Residual Plot Comparison of Genesee Yields with DM Predicted Yields (*110) Comparison of Reese Farm Level Yields with DM YR (*130) Probability Density Function Cumulative Distribution Function Cumulative Distributions - FSD and SSD Cumulative Distributions with the X-Axis and Y-Axis Reversed DRAINMOD Predicted Yields for Drainage Only and Subirrigation Cumulative NPV for Drainage Only WTMS - Base Weather Sequence (1958-97) Cumulative NPV for DR60 and Surface Water Subirrigation WTMS - Base Weather Cumulative NPV for DR60 and Well Water Subirrigation WTMS - Base Weather Histogram of NPV for DR60 Histogram of NPV for SIGOW Histogram of NPV for SI30S 12 67 68 88 88 91 95 103 108 109 110 115 115 116 Figure 4.8. Figure 4.9. Figure 4.10. Figure 4.11. Histogram of NPV for $1608 CDFS of Drainage Only WTMSS CDFS of DR60 and Surface Water Subirrigation Systems CDFS of DR60 and Well Water Subirrigation Systems 116 118 118 119 CHAPTER 1 INTRODUCTION 1.1. Introduction Excessive or deficient soil water conditions are potentially the most limiting factors in corn production. For more than a century, farmers in Michigan and other states have used surface and subsurface drainage to manage excessive water. Drainage allows farmers to begin planting operations earlier in the spring and ensures that they can begin harvest in a timely manner in the fall. In addition, it allows them to remove excessive soil water to ensure a suitable environment for crop grth during the growing season. In the Saginaw Bay Area of Michigan, many farmers are improving their drainage systems by reducing the Spacing between tiles to benefit from improved drainage. Some are also adapting their drainage systems to serve a dual role as a subsurface irrigation system, or subirrigation system. A subirrigation system is a drainage system that has been modified by installing control structures and irrigation risers and developing a water supply system to pump water into the drainage tiles during the growing season to supply supplementary water to crops. Retrofitting a subsurface drainage system for subirrigation often also entails reducing the tile spacing in order to ensure that the water table can be maintained at a more uniform level in the field. 2 Through this new water table management system (WTMS) approach, farmers can not only remove water from fields under excessive water conditions, but can also pump water back into the drainage tiles and maintain adequate soil moisture throughout the growing season. Their ability to manage the water availability conditions in their fields under both excessive and deficient soil water conditions allows them to control much of the yield risk they face. Investing in an improved WTMS has risks of its own, however. Making any investment decision involves financial risk. The farmer must determine if the increased yield benefit or reduced yield variability from improved drainage or subirrigation provides enough additional revenue or stabilizes revenue sufficiently to justify the investment cost. But in humid climates, these benefits are very dependent on the rainfall pattern in the years following the investment. For a drainage-only system, in most years the tile spacing might be adequate, but in particularly wet years, improved drainage might mean the difference between meeting and not meeting planting time constraints. Similarly, with subirrigation in humid regions, rainfall is adequate in many years to produce acceptable yields of major field crops grown in Michigan: corn, dry beans, sugar beets, and soybeans. Without taking the financial risk of investing in irrigation, farmers can still produce these crops. For a given planning horizon, the profitability of both types of improved WTMS investment over the existing drainage-onlyl system hinges on the particular pattern of rainfall following the investment. For example, with subirrigation if rainfall is adequate in the first few years following the investment, the additional yield benefit of the system is small and the payback period is lengthened, which greatly lowers the net present value (NPV) of the investment. If, on the other ‘ “Drainage only“ refers to conventional subsurface drainage. 3 hand, rainfall is poor following the investment, the additional yield benefit is large, and the system pays for itself more quickly, resulting in a larger NPV for the entire planning horizon. The question facing farmers is how to assess these issues and make the right investment choice. Past economic analyses of subirrigation and drainage have provided some measures of the net returns to subirrigation or improved drainage under actual field conditions for a limited number of years’ field data and under simulated conditions for more extensive time periods, providing decision makers with an idea of the economic benefit of the WTMS investment for a particular sequence of weather. But they have not provided answers to the larger question of what are the expected returns to an investment in a WTMS given other possible sequences of weather. The present analysis attempts to answer that question. In addition, past economic studies of WTMS have presented results in terms of mean values but have not adequately assessed whether subirrigation or improved drainage reduces income variability, and if so, how this benefit should be quantified for risk averse farmers. This study looks Specifically at the risk implications of investing in a WTMS for farmers with varying risk attitudes. Huron County, in the Saginaw Bay area of Michigan, is the hypothetical Site of this economic analysis. A major impetus for choosing Huron County as the setting for the analysis is that county farmers are currently installing improved drainage and subirrigation systems. In addition, studies of subirrigation potential have identified the five counties of the Saginaw Bay area as having the greatest concentration of acres with high subirrigation potential in Michigan (Belcher, 1990a). Of those five counties, Huron County has the largest number of acres of land suitable for subirrigation. On the other 4 hand, it also has limited ground and surface water available for further expanding subirrigation. Already in some rural townships, ordinances have been passed to limit groundwater pumping for subirrigation. This limitation has framed the context of the current analysis. If subirrigation is to continue to expand in Huron County, water sources other than groundwater need to be developed. The Saginaw Bay provides a vast supply of potential water for irrigation. If irrigation districts could be established, the large irrigation potential of Huron County could be tapped. But subirrigation would not only have to provide adequate on-farm benefits to offset on-farm costs, it would have to offset irrigation district development, maintenance, and operating costs. A preliminary study of the economic and technical feasibility of establishing an irrigation district to draw water from the Saginaw Bay to bring water to farmers in areas that are particularly suitable for subirrigation has shown that water costs to farmers in such an irrigation district could range between $25 and $35 per acre (Williams et al., 1990). This cost would be additional to on-farm costs of developing a subirrigation system and pumping water from the district irrigation canal to the farmer’s fields. The present economic analysis should provide a measure of the on- farm benefit of subirrigation over drainage only that could be used as a benchmark for what farmers might be willing to pay to participate in an irrigation district. Because some farmers do have access to ground water, the economic analysis is done for both a well water source and a surface water source. The surface water investment and operating costs mimic the on-farm costs that a farmer would experience if pumping from a private surface water source or an irrigation district canal. Operating and investment costs for a well water source are substantially higher than for a surface water source because the well drilling cost has to be considered as part of the 5 subirrigation WTMS investment. The results for the well water source subirrigation investment could provide farmers who are considering developing a private well or participating in an irrigation district with a measure of the return from each option. The analysis begins with the assumption that continuous corn is being grown on a 40 acre field that has a Kilmanagh soil and an existing drainage system with tiles spaced at 60-ft intervals. The strategies evaluated include modifying the existing drainage-only WTMS by reducing the drain spacing to 20 feet (DR20) or 30 feet (DR30), keeping the existing drainage-only system intact (DR60), converting the existing drainage-only WTMS into a subirrigation system at 20-ft tile spacings for a surface water source (81205) or a well water source (SIZOW), or into a subirrigation system at 30-ft tile spacings for a surface water source (S1308) or a well water source (SI30W), or into a subirrigation system at 60-ft tile spacings for a surface water source (81608) or a well water source (SI60W). 1.2. Objectives The objectives of this study are the following: (1) Determine the economic benefit of converting the existing drainage-only WTMS to a drainage-only system at 20- and 30-ft tile spacings. (2) Determine the economic benefit of converting the existing drainage-only WTMS to a subirrigation WTMS at 20-, 30-, and 60-ft tile spacings for a surface water source. (2a) Determine if the benefit of subirrigation with a surface water source is large enough at the farm level to offset the water use fees if an irrigation district were established which could provide water to farmers at a charge of $25-$35 / acre. 6 (3) Determine the economic benefit of converting a drainage-only WTMS to a subirrigation WTMS at 20-, 30-, and 60-ft tile spacings for a well water source. (3a) Compare the difference in benefit of subirrigation with a well water source and a surface water source with potential irrigation district water use fees to determine if a farmer without access to a private surface water source would be better off drilling a well or participating in the irrigation district. Two approaches are taken in the analysis. First, the economic analysis is performed using a given series of yields derived from a simulation model run with weather that occurred in Flint, Michigan from 1958 to 1990. This is similar to the approaches taken to date in evaluating subirrigation. Second, random yield sequences are drawn from the simulation yield data. Results from the two approaches are compared. Finally, results from the second approach are analyzed both under certainty and under risk. 1.3. Methods The analysis proceeds in seven stages. (1) The production and investment costs associated with growing corn under different WTMSS are determined. (2) The simulation model DRAINMOD is used to generate corn yields and irrigation application amounts for different WTMSS over a 33-year period of historic weather data. (3) A net present value (NPV) analysis under the base weather sequence is performed using the cost data and the output of DRAINMOD. The NPVS of the various WTMS options are compared. 7 (4) Monte Carlo simulation is used to generate probability distributions of NPVS to capture the effect of weather variability on NPV. (5) Expected net present values (ENPV) of the various WTMS options are calculated and compared across systems. The NPVS from the base weather sequence are compared with the ENPVS. (6) The probability distributions of NPV generated in the Monte Carlo simulation are compared in three stages: a) using expected value-variance (EV) efficiency criteria; b) using first and second degree stochastic dominance (FSD and SSD) criteria; c) using stochastic dominance with respect to a function efficiency criteria to compare those distributions which are not stochastically dominated by FSD or SSD. (7) A sensitivity analysis is performed to compare the outcome of the base analysis with outcomes of analyses run with a range of product prices, investment costs, financial parameters, and yield assumptions. CHAPTER2 LITERATURE REVIEW 2.1. Introduction The focus of this literature review is subirrigation. Drainage is always an integral component of any subirrigation system and is thus encompassed. It also receives some attention individually, but subirrigation is a new technology compared with drainage and hence is highlighted. Literature on subirrigation can be divided into three main categories: technical aspects, water quality impacts, and economic feasibility. In addition to economic studies that look specifically at subirrigation, there is a large body of literature on economic aspects of irrigation in general. The purpose of this literature review is to summarize the most important conclusions of studies of technical and water quality issues related to subirrigation and to focus on the economic studies of subirrigation and irrigation. The results of a selection of technical and water quality impact studies are summarized in section 2.2 below. In section 2.3, a selective overview of the findings of economic analyses of irrigation in humid climates is presented. A more extensive presentation of the available economic studies of subirrigation follows in section 2.4, Section 2.5 highlights the Strengths of available economic analyses and the gaps that need to be filled. These provide the guidelines of the approach to be taken in the current economic analysis. 2.2. Technical Aspects of Subirrigation Michigan has 3 million acres of poorly drained agricultural land (USDA, 1982). Subsurface drainage tiles make many of these acres of poorly drained, high water table fields productive for agriculture. The necessity of providing drainage and the frequent use of subsurface drainage tiles as the drainage system of choice make subirrigation through those same drainage tiles technically feasible. Below, the technical aspects of subirrigation are described and the soil and land characteristics that make subirrigation feasible are noted. Based on these characteristics, the areas in Michigan with high potential are identified. Finally, available water resources are assessed in those areas with high subirrigation potential. 2.2.1. Subirrigation Defined and Described Subirrigation is a method of providing supplementary soil moisture to crops. A subirrigation system is generally a subsurface tile drainage system that has been modified so that the drainage tiles serve a dual role of removing excess water and supplying supplementary water to meet crop needs. Figure 2.1. shows the layout of a subsurface drainage-subirrigation system. The system components include a main water pipe, perforated laterals, water control structures, and an irrigation intake riser. The main water pipe carries water from the water source to the laterals during subirrigation and collects water from the laterals during drainage and carries the water to either a drainage canal or some other receiving system. The laterals are perforated pipes, usually of corrugated plastic. Water seeps into them during drainage and out of them during subirrigation. The control structure houses the weir which when raised or lowered controls the water table level in the field. The irrigation intake riser receives the 10 Figure 2.1. Profile and Overhead View of a Drainage-Subirrigation System Overhead View of Drainage/Subirrigation System WATER PUHFED IN FROM A WILL Larrnxt l ’HAIN 2 l SLOP580.5% s Q 5 fi—cournct srnucrunr e T a , -—courneL srnucruae Profile View of Drainage/Subirrigation System CONTROL __ Scene; srnucrun: CONTROL 2 9 - STRUCTURE - a, ‘ + ~ {MAIN cum gm: g . _ ' . Lunar -' ‘ LATERAL Source: Skaggs, 1981, p. 8-5. 11 irrigation water from the water source before it is distributed through the main water pipe to the laterals. The principle behind drainage-subirrigation systems is to manage the water table (Figure 2.2.). The water table is lowered during drainage by allowing water to move freely from the tile laterals into the main and out of the field. This provides trafficable conditions during planting and harvest and removes excess water after a heavy rainfall during the growing season. As can be seen in Figure 2.2., drainage between laterals is slower than directly over the laterals, creating a dome effect on the water table. During subirrigation, water is pumped from the main into the perforated subsurface drainage tiles, raising the water table enough to maintain an adequate water supply just below the root zone of the crop. Soil capillary action and diffusion draw water upward from the water table into the unsaturated root zone, replenishing water which plants remove during evapotranspiration (ET). As in the case of drainage, during subirrigation, water movement into the soil is not always uniform. Over the tiles the water table bulges upward and between the laterals it scoops downward. A subirrigation system can be operated in either of two ways. The most common procedure is to maintain a constant water level elevation in the tile outlet. Water is periodically pumped into the tiles to replenish water which moves from the drains into the soil to supply ET demands and seepage losses. A second procedure is to pump water into the root zone of the soil profile. After pumping is stopped, the water table level is allowed to fall to some predetermined level before pumping is initiated again (Skaggs, 1981). 12 Figure 2.2. Schematic of Water Table Management RAINFALL OR ET liiiiiliiiiiiiiiiiiiili DEPRESSION STORAGE S = RUNOFF (R0) - , - ? m------' SUBIRRIGATION WATER TABLE ii Ii/l/7i7/l/lf/7f/Tlf/II/I/flf/I/fllfl/IU’7T7/7/777 RESTRICTIVE LAYER DEEP SEEPAC-E (05) Source: Skaggs, 1981, p. 2-1. 2.2.2. Soil and Land Characteristics Soil properties are among the most important considerations when assessing the potential for subirrigation (Kittieson et al., 1990a). The most important soil factor in subirrigation is the presence or absence of a barrier layer within 72 inches of the soil surface. This barrier is a natural feature of poorly drained soils. It slows the downward movement of water into the soil and produces a shallow water table. It is the barrier layer and the Shallow water table that make water table management both necessary and feasible. Necessary, because drainage tiles must be used to remove excess water from 13 fields for planting and harvest operations when heavy equipment requires trafficable field conditions. Feasible, because with the barrier, water pumped into the tiles through a subirrigation system is prevented from draining immediately through the soil layers and moving beyond reach of the plant roots. Other soil factors, such as soil texture, permeability in the top 40 inches and in the 40- to 60-inch layer, depth to bedrock, and depth to the barrier layer determine the suitability of soil for subirrigation (Kittleson et al., 1990a). Field Slope also affects the feasibility of subirrigation. Land with a slope greater than 2% Should not be considered for subirrigation, while land with a Slope of between 0 and 1% has a high potential for subirrigation. Slope is an important determinant because for subirrigation to be practicable, the water table needs to be kept at a relatively uniform level throughout the field. If there is too much Slope to a field, several zones need to be established within the field and a control Stand installed for each zone (Figures 2.1. and 2.2.). A control stand should be installed in the main subirrigation line for every 0.5% change in slope in the field. If the field slope is greater than 2%, adding the extra control stands necessary to maintain a uniform water table level in the field increases the cost of the subirrigation system. Based on the above criteria, researchers at Michigan State University’s Institute of Water Research and at the Soil Conservation Service estimate that 492,192 acres, or 19.9% of the agricultural land, in the five counties of the Saginaw Bay area have high potential for subirrigation. Huron county has the largest number of acres of highly suitable land, with 353,234 acres. In the five county area, another 1,497,433 acres (59.8%) have medium potential. Thus, 80% of the agricultural land in the study area has 14 either high or medium potential for subirrigation based on soil property criteria alone (Kittleson et al., 1990a). 2.2.3. Water Availability Irrigation, both sprinkler and subirrigation, has expanded rapidly in Michigan in the last decade. In Huron County, the hypothetical Site of the present economic analysis, in the 11-year period between 1978 and 1988 irrigation acreage increased 500% from 438 acres to 2200 acres (Michigan Department of Agriculture, 1990; LeCureux and Booms, 1990a). In 1987, the total irrigated acreage in Michigan was 15,035 acres, up from 8,460 acres in 1978 (US. Department of Commerce, 1978 and 1987). While the total irrigated acreage for Michigan is still quite low, there has already been concern about increasing water demand for irrigation in rural townships in the Saginaw Bay Area. Some townships have established water use ordinances to limit the continuous operation of high volume irrigation wells. In Huron County, township administrators are considering ordinances that would require farmers to obtain permits to pump groundwater for agricultural purposes (Kittieson et al., 1990b). Several studies have been made of water availability for irrigation in the Saginaw Bay area. One study showed that over 83% of the high suitability soils and 55% of the medium suitability soils are located over geologic formations containing no significant aquifer. In Huron County, which has the largest number of acres of highly suitable land for subirrigation, only 19,659 of the 324,000 suitable acres are over an aquifer (Kittleson et al., 1990a). The authors concluded that if major expansion of subirrigation occurs on high suitability soils using groundwater, shortages of groundwater and /or decreases in 15 groundwater quality will develop almost immediately in most areas (Kittleson et al., 1990a). Considering surface water availability, a recent study by the Department of Resource Development at Michigan State University (He et al., 1991) estimated that although 68.1% of the land in the Saginaw Bay area that is within two kilometers of surface water supplies that have year-round water, a maximum of 44,105 acres (2.2% of the total agricultural land in the Saginaw Bay area) can be irrigated by stream flow in the watersheds in the five Bay counties for which stream flow data are available. This estimate is based on three assumptions. First, it is based on irrigation water demand at the 75% probability level, which means that irrigation demand in a particular year will be smaller than the calculated value 75% of the time (He et al., 1991, p.13). Second, it is based on a 75% exceedence flow, which indicates that Stream flow will exceed or equal the specified value 75% of the time. Third, it is also based on the assumption that stream water is drawn down to the 95% exceedence level. This is the flow level set by the National Pollutant Discharge Elimination System (NPDES) for effluent limits. If withdrawals did in fact occur up to the 95% exceedence level on a regular basis, however, they would ”seriously degrade the quality of the stream” (He et al., 1991). The largest source of water in the Saginaw Bay Area is Lake Huron. Agricultural producers bordering the lake at Saginaw Bay can and do use bay water to irrigate their crOps. In fact, most growers who have access to lake-level water irrigate their crops (Spicer, 1990). Currently, the legal use of lake water for irrigation is limited to lands that are riparian to Lake Huron or to a tributary stream. Access varies depending on the lake level, which fluctuates as much as 6.59 feet at the extremes (Spicer, 1990). The Kittieson et al. (1990a) study mentioned previously showed that there are 37,561 acres of 16 highly suitable land within 2.5 miles of Lake Huron, with 34,074 of these acres in Huron County. Another 72,816 acres of medium suitability soil fall within this same distance, and 11,861 of these are in Huron County. The limited availability of suitable stream and ground water and the elevated costs of developing groundwater sources have stimulated interest in exploring the feasibility of establishing irrigation districts to draw water from Saginaw Bay. Several engineering studies of costs of constructing an irrigation district have been commissioned by the Saginaw Bay Subirrigation/Drainage (SBSD) project (Spicer, 1990; Williamson & Associates, 1990; Williams et al., 1990). One study of a proposed 24,000 acre district in Huron County falling within the Caseville, Lake, McKinley, and Chandler Townships (Williams et al., 1990) estimated that for a system designed at a capacity to deliver 8 inches of water in 40 days to 50% of the area farmland, the total annual cost would be between $25 and $35 per acre. These estimates include amortization of the construction costs and annual operation and maintenance costs, assuming 8% financing over 20 years. These figures are only for delivery of the water to a farmer’s field. Once delivered, water must be distributed and the costs of the on-farm distribution system are additional costs. A second study (Spicer, 1990) reports that a 2,400 acre Mud Creek Irrigation District in Huron County is being established to withdraw water from Saginaw Bay. Their estimates are that the average cost per acre for a district encompassing 5 miles of land fi'om the bay inland would be $841, which translates into an average annual cost of $32.30 per acre, based on a 20 year depreciation period and 8% interest. These costs include construction costs, interest, electricity, and maintenance costs. In this case, l7 farmers would again incur additional costs to bring the water from the irrigation ditch to their fields. The per-acre cost estimates of establishing the irrigation districts necessary to pump from the bay are relatively high given that farmers must then incur additional costs to bring the water to their fields. Part of the impetus of the current economic analysis of subirrigation and others done in Huron County is to determine if the benefits of subirrigation are large enough at the farm level to cover additional costs of water brought to farmers through an irrigation district at a per-acre cost of as much as $35. The results of on-farm economic studies will establish whether irrigation expansion should be limited to acreage that can be irrigated with surface water (other than lake water) and ground water, or whether it will be economically viable to establish irrigation districts and greatly expand irrigated acreage through the use of lake water. 2.2.4. Water Quality Aspects of Subirrigation Water quality research has focused on whether subirrigation results in more or less contaminants being discharged into tile effluent, being lost to surface water runoff, or remaining in the field than conventional subsurface drainage or surface-only drainage systems. Results are rather mixed. Two researchers at Michigan State University’s Department of Agricultural Engineering summarized the results of 43 research reports published in scientific journals and 18 additional research articles in a literature review of water table management impacts on water quality (Fogiel and Belcher, 1991). They concluded from the studies that the primary impact of water table management is on receiving surface waters (as opposed to groundwater) and that in general, subsurface drainage systems reduce runoff and therefore result in less sediment and fewer pollutants 18 attached to soil particles being delivered to surface waters. However, some studies showed that improper management of subsurface drainage systems can result in increased nitrate nitrogen concentrations and loadings being delivered to receiving waters. Only two of the studies Fogiel and Belcher reviewed looked Specifically at the effects of subsurface irrigation (SI) on water quality. One study (Campbell et al., 1985) compared differences in nitrate-nitrogen and orthophosphate losses on a sandy soil between a water furrow-irrigation system and a subsurface drainage-irrigation (SI) system. The authors found that SI system reduced overland flow and sediment loss and also resulted in reduced nitrogen loading and potassium concentrations (Fogiel and Belcher, 1991). A Michigan water quality pilot study (Protasiewicz et al., 1988) comparing nutrient and pesticide loads carried to the edge of field in subsurface drain flow between a conventional subsurface drainage system and a subirrigation-drainage system over an 8-month period reported that levels of nitrate-nitrogen and phosphorous carried to the edge of the field by subsurface drain flow were higher for the conventional subsurface drainage system than for the subsurface irrigation-drainage system while levels of potassium and atrazine carried to the edge of field were lower for the conventional subsurface drainage system. Field trials in Huron County (LeCureux and Booms, 1990c,d; LeCureux, 1991a,b) over the 4-year period 1987-90 showed that subirrigation does not contribute additional amounts of nitrates or pesticides to tile effluent. Some of the data indicated that subirrigation allowed crops to better utilize nutrients, thus reducing the residual amounts of these chemicals being lost in the tile system or in surface runoff. Data from 1988, a low rainfall year, showed that the subirrigated fields released lower levels of nitrates into 19 tile effluent in the fall than the drainage only fields. On the other hand, data from 1989, a more plentiful rainfall season, indicated that both systems released approximately the same level of nitrates into the tile effluent. Fogiel (1992) monitored the effects of water table management on nutrient and chemical loadings in surface and subsurface runoff and in the soil for 2 years at a field site in Unionville, Michigan. He found that in comparison with a no subsurface drainage (NSD) system, both subirrigation (SI) and conventional drainage (DR) reduced surface drainage outflow and surface drainage orthophosphorus loading for an above average rainfall (AAR) growing season drainage but resulted in similar surface drainage and surface drainage loadings of orthophosphorus during a below average rainfall (BAR) growing season. For both AAR and BAR growing seasons, both SI and DR resulted in increased total flow from the field but in reduced surface drainage loadings of nitrate nitrogen and potassium compared with the NSD treatment. In comparing SI and DR, Fogiel found little difference in effect on surface drainage outflow for either growing season, but that 81 increased tile outflow and reduced tile outflow loadings of nitrate nitrogen and orthophosphate phosphorus for the AAR growing season. 81 increased potassium tile outflow loading for both seasons. Testing of field samples for the top 0.3 meters of soil for alachlor and nutrients Showed no traces of alachlor for any WTMS, but both tile drained treatments were found to have significantly higher orthophosphate phosphorus loadings for the AAR season and the SI treatment had Significantly higher orthophosphate phosphorus than did either the DR and NSD treatments for the BAR season. For both growing seasons, the tile drained treatments had significantly higher potassium loadings than the NSD treatment. 20 To summarize these results, in comparing subirrigation with drainage only, subirrigation results in lower nitrate nitrogen losses in surface runoff and in the tile effluent and in higher potassium and atrazine loadings in the tile effluent, regardless of seasonal rainfall. Subirrigation results in higher phosphorus soil concentrations in low rainfall years. Because current scientific understanding of the effects of drainage and subirrigation on water quality is limited and inconclusive, a research site has been established in the Saginaw Bay area to study these effects. Both nutrient and pesticide sampling of tile effluent, and surface runoff, and soil will provide additional data to judge the environmental effects of water table management. 2.3. Economic Analyses of Irrigation There is a large body of literature on economic analyses of irrigation in general. These can be divided into those that deal with irrigation application strategies under a given irrigation system and those that deal with the investment decision concerning which irrigation system to install given several choices. For the present analysis, the irrigation investment literature is most relevant. Because irrigation investment decisions involve a long planning horizon, the economic analyses in general use some form of net present value (NPV) model as the analytical tool for evaluating the profitability of the investment. The objective function ascribed to irrigation managers differs depending on the decision environment. Boggess et aL (1983) performed a review of all the irrigation Strategy analyses, including investment strategies, reported in professional journals to determine what Specific objectives were ascribed to the irrigation manager and how the issue of variability in the 21 decision environment shaped the specification of the objective function. They summarized the key sources of variability addressed in the studies as follows: (1) Variability in aboveground conditions, which include plant capabilities, soil cultivation practices, level of weed control, wind conditions, degree of solar radiation, rainfall quantity and timing, humidity and temperature. (2) Variability in below ground conditions, including rooting depth and density, nutrient movements and levels, water holding and hydraulic features of the soil, proximity to ground water, and infiltration rates. (3) Variability of product price. (4) Variability in marginal costs of irrigation water, including fuel and labor costs and cost differences related to the design of the irrigation system. (5) Variability of institutional features of the water supply system, including rules affecting when water can be pumped, how much can be diverted, and when it can be used at all. They concluded that yield variability as influenced by above and below ground conditions has received the brunt of attention in the literature. Yet they were surprised by the fact that only three studies (Yaron and Strateener, 1973; Harris and Mapp, 1980; and Boggess et al., 1981), of 52 studies reviewed, presented estimates of the variance of profits stemming from yield variability associated with various strategies and only two of those three (Yaron and Strateener, 1973; Boggess et al., 1981) posited that profit maximization subject to minimum variance of profits represents a credible goal of irrigation managers. The other studies used single-dimensional decision criteria to determine optimal irrigation strategies. The objective functions included yield 22 maximization, profit maximization, water use minimization, yield maximization given a fixed quantity of water, etc. To illustrate the diversity of approaches emphasized by Boggess et al. (1983), two studies are presented below. The Wilson and Eidman study (1983) is a straight-forward investment analysis that assumes the goal of the irrigation manager is to choose the irrigation strategy that maximizes profits under conditions of certainty. It assumes known and fixed financial parameters and uses an average yield differential between irrigated and nonirrigated production. The Boggess and Amerling study (1983) begins with the assumption that the goal of an irrigation manager is to choose a production strategt that reduces income variability. It therefore tries to assess the impact of variations in weather patterns and the associated variability in yield differentials between irrigated and dryland production on the profitability of irrigation investments in humid regions. Wilson and Eidman ( 1983) used the results of a survey of irrigators in the southwest and south central regions of Minnesota to perform a financial analysis of investing in a center pivot irrigation system for several different soils found in the two regions. The impetus for the study was that farmers in the aftermath of the 1974-76 drought installed irrigation systems without having specific information about the financial profitability of irrigation for their soils. The authors obtained information from irrigators for both irrigated and nonirrigated yields of corn and soybean and developed a yield differential model for predicting corn yields. They used this information to analyze the profitability of investing in a center pivot irrigation system for different soils using an after-tax net present value model. In their analysis, they abstracted from all potential sources of risk, 23 assuming an average yield differential over the 15-year planning horizon, assuming fixed investment costs, fixed crop prices, and fixed pumping costs each year. They found that irrigation is profitable on soils with a moderate available water capacity (lighter soils) but is not profitable (assuming a 12% desired after-tax rate of return) on high and very high available water capacity soils (heavy soils). The lower profitability on the heavier soils was directly related to the lower yield differential between dryland and irrigated yields on these soils. Boggess and Amerling (1983) investigated the importance of the pattern of weather variability on irrigation investment decisions in humid climates. They argued that irrigation investment decisions in humid climates differ markedly from those in arid climates because of the sensitivity of net present value (NPV) to the particular weather sequence over the economic life of the investment. They were able to capture this particular feature of the investment decision by using Monte Carlo techniques to generate probability distributions of NPVS. They used a simulation model to generate dry-land and irrigated crop yields based on a 17-year time series of historical weather data and incorporated the results from the simulation model into a net present value analysis. For two different soil groups and three different crops (corn, peanuts, and soybeans), they studied the profitability of four alternative irrigation investment options, two based on a center pivot system and two based on a traveling gun irrigation system. They found that the profitability of the systems over a dryland production system difiered by crop and by soil type. For a sandy soil, only the low pressure center pivot (LPCP) irrigation system had a positive expected NPV for all three crops1 and peanuts ‘ NPV figures were reported as the additional benefits of investing in irrigation as compared to dryland production of the same crop. 24 was the only crop for which all four irrigation systems had positive expected NPVS. For a sandy loam soil, none of the irrigation systems had a positive expected NPV. Sensitivity analysis of the NPV results to marginal tax rate, inflation rate, product price, and yield response for the LPCP system revealed that the expected NPV of investing in irrigation is relatively more sensitive to yield response and output prices than to the other parameters. The authors found that of the three crops studied, the NPV results for corn, which had the lowest per-unit value of the three crops, were the most sensitive to yield response. This finding highlights the fact that the assumed level of product price can have a significant impact on the NPV results and that sensitivity analyses should be done for a range of product prices. For the sandy soils, the authors compared the cumulative distribution functions (CDFS) of NPV for the different investment options to determine stochastic dominance. They found that within crops, the systems could be ordered by first degree stochastic dominance (FSD), with the LPCP system dominating the others. This particular result occurred because all the irrigation systems were assumed to produce equal yield results but involved differing investment costs. In comparing the CDFS of NPVS across crops on both soil types for the dominant irrigation system, the LPCP system, they were able to set priorities for irrigating different crops given either soil type. Thus they found that on sands, peanuts dominate corn by FSD and both dominate soybeans by FSD. On sandy loams, they found that com dominates both soybeans and peanuts by FSD, while soybeans dominate peanuts by SSD. 25 2.4. Economic Evaluations and Studies of Yield with Subirrigation Unfortunately, literature on the economics of subirrigation is limited. A thorough literature search revealed no studies done by economists on subirrigation. Available economic and yield studies fall into two categories: Those done by extension agents and engineers using actual data from field trials and those done by engineers using simulated data. The studies will be summarized below based on this distinction. Before going into the results of specific economic analyses of subirrigation, some general information is provided first to clarify basic cost considerations in water table management systems. For any drainage (DR) or subirrigation (SI) system, cost effectiveness depends on the crop, soil, topography, climate, water supply (for SI), and degree of management. The two main expenses involved in installing and operating a water table management system are the costs of providing a water supply and of installing underground tiles. Tiles must be laid for both DR and SI systems, but for effective subirrigation, the tile spacing is often narrower. The tiles and water supply costs are very site specific and can vary as much as 300%. Evans et al. (1988) give a very detailed analysis of costs associated with different drain spacings, water sources, control systems, and pumps for North Carolina. The cost of a water supply varies greatly by water source. For a surface water source such as a pond, stream, lake, etc., the initial investment cost is limited to the pump and electricity hookup charges. If a surface water source is not available, the SI investment costs include the well installation costs and higher pump investment costs. In addition, Operating costs for a well water source are higher than for a surface water source. In the Huron County studies presented below (LeCureux and Booms, 1990a-d; LeCureux 1991a,b) electricity costs for surface pumping ranged from $4.19 to 3560/ acre, while those for deep well pumping 26 ranged from $9.60 to $12.35/acre, a difference of $5.41 to $6.75/acre. Pump depreciation and interest costs for surface pumping were reported as $15.35 / acre based on a 7-year depreciation period and 12% interest. The same costs for deep well pumping were $32.57/acre. The combined difference between these system costs for a well water source and a surface water source is as high as $24/acre. The reality of these cost differences is evident in the water source use patterns of agricultural producers in the Saginaw Bay area. A 1988 subirrigation inventory survey by Belcher and Wood (1990) found that 90% of survey respondents used a surface water source such as a stream or river (30%), a ditch (43%), or a pond (17%). Only 13% of the respondents reported using a well as their water source.2 That same inventory revealed that 69% of the subirrigation systems were originally drainage only systems that were retrofitted for subirrigation. From the above, it is clear that any economic analysis must clearly specify the underlying assumptions about costs and the characteristics of the site. More general conclusions can be drawn from economic analyses if sensitivity analyses of key assumptions are performed to give a better idea of the range of outcomes possible when a key parameter is changed. 2.4.1. Field Studies 2.4.1.1. Yield Analyses Michigan-specific yield data for subirrigation is available through two unpublished theses (Fogiel, 1992; Belcher, 1990). Fogiel’s study evaluated the effect of subirrigation ’ Some respondents used both a well and a surface water source so the total does not equal 100%. 27 on corn yield at a field site in Unionville in Tuscola County during 1990 and 1991. All management inputs except water table management were the same for three treatments: a subirrigated treatment (SI), a drainage-only treatment (DR), and a no-drainage treatment (ND). The results Show that SI yields were 9% higher than DR yields and 17% higher than ND yields in 1990, a year where rainfall was 32% above the 30-year average rainfall for the site. In 1991, a year where rainfall was 52% below the 30-year average, the SI yield was 58% higher than the DR yield and 76% higher the ND yield. Fogiel’s results show that subirrigation produces a significant yield benefit over no drainage in both wet and dry years, with the largest increase derived in dry years, and produces a modest yield benefit over drainage only in wet years, but a substantial yield increase in dry years. Belcher (1990) studied the yield effect on corn and soybean of varying the water table level at two field sites: St. Johns in Clinton County and Bannister in Gratiot County. At the Bannister site, which has a Ziegenfuss soil, subirrigation tile laterals were spaced 20-, 40-, and 60-ft apart and at the St. Johns site, which has a Wasepi soil, they were spaced 40-, 56-, and 79-ft apart. Corn yield results at the Bannister site for 1986, the first year after the system was installed, at the different Spacings and water table depths ranging from 38 to 95 cm, did not Show a high correlation between water table depth and yield nor were there noticeable yield differences between the different tile spacings. These results could have been due to the fact that the soil at the site had been disturbed the previous season when the subirrigation system was installed. In 1987, water table depths were allowed to vary more significantly than in 1986 (from 48 to 158 cm) and there was a more noticeable treatment effect between the different water table depths at the same tile spacing. At the 20-ft tile spacing, the corn 28 yield was 226 bushels/acre (bu / acre) at a water table depth of 48 cm compared with a yield of 138 bu/ acre at 63 cm and 172 bu/acre at a 144 cm water table depth. At the 60- ft tile spacing, yields increased steadily with decreases in the water table depth. At a depth of 123 cm the yield was 138 bu/acre, at 96 cm it was 156 bu/acre, and at 82 cm it was 200 bu/ acre. The St. Johns results are Similarly mixed for 1987, the year following installation of the system. However, in 1988, a very dry year, the relative yields increased at each tile spacing as the water table depth was raised. At the 40-ft tile spacing, corn yields rose from 116 bu/acre to 166 bu/ acre as the water table depth was raised from 112 cm to 70 cm. Similarly, at the 80-ft tile spacing, relative yields rose from 116 bu/ acre to 182 bu/acre as the water table depth was raised from 112 cm to 71 cm. Other field studies of yield for subirrigated crops outside of Michigan are available and provide useful information for comparative purposes. Most of these studies use the results of field data from other researchers to validate the DRAINMOD simulation model (Hardjoamidjojo et al., 1982; Hardjoamidjojo and Skaggs, 1982). Hardjoamidjojo et al. (1982) studied the effect of drainage, including surface drainage, tile drainage, and a combination of tile and surface drainage, on corn yields under excessive soil water conditions. Their findings are important because they highlight the fact that improving drainage alone on poorly drained fields greatly improves corn yields. In reporting their results, Hardjoamidjojo et al. used the concept of relative yields. This concept warrants explanation here because it will appear again when results of simulation studies are summarized. Relative yield in percent terms (YR) is the actual measured yield (Y) divided by the potential yield (Yo): YR = Y/Yo x 100. 29 The potential yield can be either the highest yield obtained in a particular field trial or it can be the yield goal set based on current technology and given perfect growing conditions. The concept of relative yield is used to eliminate the effects of factors other than the drainage treatment effects when comparing yields across trials and across years. Hardjoamidjojo et al. (1982) ran field trials in Ohio under excessive soil water conditions from 1962-64, 1967-71, 1976-79 and compared the effect of no drainage, surface drainage only, tile drainage only, and tile plus surface drainage treatments on corn yields. Excess water was the only stress the corn plants were exposed to. Under these conditions relative yields improved consistently from a Situation of no drainage, to surface drainage, to tile drainage, to tile plus surface drainage. With tile plus surface drainage, relative yields were greater than 90% in 8 out of the 13 years. 2.4.1.2. Economic Analyses In Michigan several economic studies of subirrigation on row crops have been done by an extension agent, Jim LeCureux, working with farmer cooperators in the Saginaw Bay area as part of the SBSD project. These Huron County studies are published in two volumes (D’Itri and Kubitz, 1990 and 1991) and report the results of field trials from 1987-90. The crops evaluated include corn, soybean, sugar beets, and dry beans. LeCureux evaluated subirrigation for crops singly and as part of a rotation scheme (LeCureux and Booms, 1990a-d; «LeCureux, 1991a,b). In addition, two studies of the economies of subirrigation on alfalfa have also been done in the Saginaw Bay area (Auernhamer and Belcher, 1990; Protasiewicz and Auernhamer, 1991). Because of the relevance of the Huron County studies to the present study, a fairly comprehensive accounting is made of the approach taken in both the trials and the 30 economic analysis of the trials. The results of the 1987-90 field trials are summarized in Tables 2.1 - 2.5. In order to present as much information as possible in the tables, abbreviations have been used extensively. These are summarized below. AthRViaticn Simifisance Mgt Management Strategy Drain Space Spacing between drainage tiles SI Adv Difference between results of the subirrigated treatment and the companion drainage only treatment for the same tile spacing CN Corn SB Soybeans NB Navy beans SBT Sugar beets WH Wheat SI Subirrigated HW High Water Table Goal (close to soil surface) MW Medium Water Table Goal LW Low Water Table Goal (further from soil surface) DR Drainage only R30 30-inch crop row spacing R15 lS-inch crop row spacing 1987 Field Trial Results (See Table 2.1) The 1987 field trials (LeCureux and Booms, 1990a) evaluated the effect of subirrigation on corn yields at two Sites where the tile spacings were 25 feet on a Kilmanagh soil (Site 1) and 60 feet on a Shebeon/Kilmanagh soil (Site 2). At both sites subirrigated treatments (81) were compared to drainage only treatments (DR). At Site 1, two water table levels were tested for the subirrigated plot and alternate yield goals of 200 bu/ac, 180 bu/ ac, and 160 bu /ac were set for the irrigated zones. A single yield goal of 160 bu/ac was set for the DR treatment. Plant populations and fertilizer levels varied by yield goal. The logic behind establishing three different yield goals for the subirrigated zone and a single lower yield goal for the drainage only 31 zone is that higher yields can be expected for the subirrigated plots because water is not a limiting factor. Thus, separate production functions are assumed for the different treatments. At Site 2, a single yield goal of 180 bu/acre was established for both treabnenut Yield results for the different zones at both sites are summarized in Table 2.1. TABLE 2.1: Summary of Yield Results for 19873 Crop Mgt Drain Yield Actual 81 Space Goal Yield Adv CN SI 25 HW 200 174 59 180 170 55 160 155 40 LW 200 176 61 180 171 56 160 160 45 DR 25 160 115 CR SI 60 180 121 0 DR 60 180 121 lieéurefix an: Booms, 1393a) (Source: Because the 1987 economic analyses do not include depreciation costs or interest for the pumping equipment and other control structures necessary for subirrigation, net revenue figures are not included in Table 2.1. These costs were included in all subsequent Huron County economic analyses and results are therefore presented and compared for the later analyses. The results at Site 1, where a well water source was used, Show that in a year where the rainfall is unevenly distributed, such as 1987, subirrigation produced a yield difference of as much as 62 bu/ acre over drainage only. 3 Seasonal rainfall for 1987 at Site 1 was 16.25 inches and at Site 2 it was 14.65 inches. Normal seasonal average rainfall for Huron County is 17.3 inches. 32 At Site 2, the surface water source used for subirrigation could not provide adequate water to subirrigate the test plot. In addition, at the 60-ft tile spacing it was not possible to maintain a uniform water table in the subirrigated field. Under these conditions, there was no yield difference between the partially subirrigated plot and the drainage only plot. 1988 Field Trial Results (See Table 2.2) The second year of field trials, 1988, was also a dry year in Huron County. Corn trials were repeated at Site 1 and Site 2 (although on different plots) and a sugar beet trial was run at a third Site, Site 3, which also had a Kilmanagh soil (LeCureux and Booms, 1990b-d). At Site 2, a different field from the 1987 one was chosen for the field trial. In this field, the tiles were spaced at 25 feet instead of 60 feet. Instead of a subirrigated and drainage only comparison, this time three water table depths were compared: 12-inch (HW), 18-inch (MWl and MW2), and 35-inch (LWl and LW2) and three yield goals (160, 180, and 200 bu /ac) were established. One area of the low water table field had water levels that remained at 48 inches and yields from this plot are considered equivalent to a drainage only treatment for comparisons. The gross margin analysis for subirrigation included annual principal and interest payments on the pump installation and material based on 12% interest over 7 years and annual per acre electrical charges for pumping water. Seed and fertilizer costs for subirrigated corn were higher than for the drainage only case using the same assumption as before that a lower yield goal needs to be set for the drainage only treatment. The results of the trials and the net margin analysis are summarized in Table 2.2. For the economic analysis, LeCureux compared the HW SI treatment with the DR 33 treatment and found a yield advantage of 47 bu/acre and a net revenue advantage of $90/acre for the subirrigated corn. Although LeCureux did not do an economic analysis of the different water table level management schemes, the yield results Show that there was a difierence in yields due to the variation in water table levels. Yields for the field where the water table averaged 12 to 18 inches were 30 bushels higher than yields for the 35-inch water table field. However, there was very little difference in yields between the 12- and 18-inch water table treatments. At Site 1 alternate water table levels were established in the subirrigated zone and a drainage only zone served as a control. All treatments had 25-ft tile spacings. A yield goal of 160 bu/ acre was set for the drainage only treatment and less fertilizer and seed were used. A 180 bu/acre yield goal was set for the subirrigated plots. Yield results Show no significant yield difference between high and low water table zones, but a significant 71 bu/acre difference between the subirrigated treatments and the drainage only treatment. The economic analysis Shows a $72/ acre benefit to subirrigation (Table 2.2). The smaller gross margin at Site 1 compared with Site 2, where the yield difference between SI and DR corn was smaller than at Site 1 was due to the higher cost of well water compared with surface water. In both cases, however, the results Show that no extra benefit is derived from maintaining too high a water table. A sugar beet trial was run at Site 3. Two zones with 60-ft and 30-ft tile spacings were divided into subirrigated and drainage only plots. As with the previous trials, the subirrigated treatment received different levels of inputs (high /low nitrogen and high/low plant populations) to reflect differing yield goals, while the drainage only treatment received only the lower level of inputs (low nitrogen / low plant population). A summarized version of the results is presented in Table 2.2. 34 In his economic analysis, LeCureux compares the yields and net revenues of the SI and DR treatments for the 30-ft tile spacings and reports a $158.48/acre difference in net revenue in favor of the subirrigated treatment. In the published results, LeCureux notes that there is a difference in yields between the 30-ft and 60-ft tile spacings for both the subirrigated and drainage only plots (Table 2.2). He does not, however, evaluate the economic benefit of splitting the tiles. In Michigan, many farmers are already ”splitting tiles,” i.e., decreasing the distance between drainage tiles, to benefit from the increased yields of improved drainage. TABLE 2.2: Summary of Field Trials and Economic Analyses for 1988‘ Actual SI Net 81 Yield Adv Rev5 Adv 151 71 $174 $72 151 71 90 $102 155 47 $273 $90 154 45 154 45 133 14 132 13 119 $183 22.1 5.5 24.5 5.4 $487 $158 15.5 2 18.1 $329 Sor_~ce._“ . _ Booms, ° ‘ c,d) ‘ Seasonal rainfall in 1988 at Site 1 was 16.25 inches, at Site 2 it was 10.02 inches, and at Site 3 it was 11.3 inches. ’ Corn price I: $2.50/bu. Sugar beet price = $31.00/ton. ° Refers to the crop planted previously at the Site. 35 Using the yield and cost data provided by LeCureux, a rough gross margin analysis of the benefit of splitting the tiles for this trial can be made for both the subirrigated and drainage only cases. The retrofit calculations were made using an annual principal and interest payments figure of $39.12 on tile and material. This figure is based on 12% interest over 15 years (LeCureux and Booms, 1990c, p.235). Using this figure, the benefit to Splitting the tile for the subirrigated treatments is $52.68 and for the drainage only treatment is $33.11!: $17.92 (Table 2.3A, 2.3B). TABLE 2.3A: Benefit to Splitting Tiles for Sugar Beet - SI Treatment ECONOMIC INFORMATION: SITE 3 30-ft tile space 60-ft tile space Treatment SI SI Yield 24.5 tons 22.1 tons Gross Income ($31/ton) $759.50/acre $658.10/acre EXPENSES (s): . ($4/ton) 5 98.00 5 88.40 ' Tile 5 39.12 TOTAL EXPENSES $137.12 $ 88.40 N GROSS MARGIN $622.38 $569.70 DIFFERENCE: $ 52.68 LeCrex a7 1 c,d) ( see " 36 TABLE 2.3B: Benefit to Splitting Tiles for Sugar Beet - DR Treatment ECONOMIC INFORMATION: SITE 3 30-ft tile space 60-ft tile space Treatment DR DR I Yield 18.1 tons 15.5 tone I Gross Income (SBl/ton) $ 516.10/acre S 480.50/acre expenses (5): ($4jton) $ 72.40 S 62.00 $ 39.12 TOTAL EXPENSES $ 115.52 5 62.00 GROSS HARGIN S 400.58 $ 418.50 I DIFFERENCE: (5 17.92) (Source: LeCureux an Booms, 1 90c, ) This simple example shows that under the climatic, management, and cost conditions prevailing in 1988, splitting tiles for drainage only when growing sugar beets was not economically attractive. At the same time is shows that splitting the tiles for subirrigation under 1988 conditions was profitable. 1989 Field Trial Results Beginning in 1989, LeCureux extended his analysis to include the effects of a rotation (LeCureux, 1991a,b). Agricultural producers in the area rotate some combination of corn, dry beans, soybeans, and sugar beets. LeCureux tried to capture the significance of this practice for the economic viability of subirrigation. In order to utilize all the available yield data from the various trials, LeCureux averaged the yield and net revenue results of all the 1987 and 1988 corn and sugar beet trials with the results of the 1989 corn, soybean, navy bean, and sugar beet trials (to be discussed below) and then compared the subirrigation and drainage only yield and net 37 revenue figures. For the corn, beet, soybean, navy bean rotation, he reports an average benefit to subirrigation of $24.37/ acre. This approach utilizes all the available data, but it does not give an accurate picture of the benefit to subirrigation under rotation at the level of a single field. From the 1988 and 1989 field trials, data were available for a corn - soybean rotation at Site 2 for the same field and on a sugar beet - corn rotation at Site 3 for the same field. These data can be used to consider the economic benefit to subirrigation under a rotation on the same field. This approach will be illustrated below after the results of the 1989 field trials are summarized. One other issue that LeCureux addressed in analyzing the 1987-89 results of the various trials was whether subirrigation reduces year-to-year yield variability for the different crops. He again compared results from all the field trials at the different farms. Again, ideally, an analysis of variability should be done for the same field with the same tile spacing. LeCureux did not have a long enough data series to make such an analysis. In 1989, LeCureux ran three field trials at Site 2: sugar beets, soybeans, and navy beans. The sugar beet trial was run in a field with 30-ft tile spacings that was subirrigated and in a field with 60-ft tile spacings that had both a subirrigated and drainage only treatment. All plots received the same level of inputs. The results of the yield and economic analysis are presented in Table 2.4. Comparing results for the 60-ft tile spacing, the subirrigated treatment had a $33.05 net benefit over the drainage only treatment. Comparing the 30-ft SI treatment and the 60- ft SI treatment to evaluate the benefit of splitting the tile for subirrigation, we see that the benefit is only $2/acre. Using cost data from the 1988 analysis, where costs for splitting tiles were reported as $39.12/acre based on 12% interest over 15 years, it is 38 clear that under 1989 conditions it the economic benefit of splitting the tiles for subirrigation is negative. Because a 30-ft drainage only treatment was not included in the trial, we cannot evaluate the benefit to splitting tiles for drainage only. This would be a useful comparison, however, because some of the yield benefit of the 30-ft SI treatment over the 60-ft DR treatment might actually be attributable to improved drainage alone in moving to a smaller drain spacing. For sugar beets, the yield benefit of the 30-ft SI (subirrigated) treatment over the 60-ft DR (drainage only) treatment was less than 2 tons. Comparing the economic results of the 30-ft SI treatment and the 60-ft DR treatment, a benefit of $34.88 is gained from bo_th splitting tiles and subirrigating. As mentioned above, if the costs of splitting tiles are taken into consideration, the benefit of splitting tiles and retrofitting a drainage only system for subirrigation is negative. These conclusions, of course, depend on the price of beets, the level of management, and the rainfall for the 1989 season. Rainfall in 1989, while still below average, was more plentiful and much more evenly distributed than in 1987 or 1988. The 1988 beet trial at Site 2 Showed a greater than 6 ton yield increase due to subirrigation, whereas in 1989 the yield increase was less than 2 tons. This example illustrates how sensitive the economic benefit to subirrigation is to seasonal rainfall, crop price, and crop gown. The 1989 corn trial at Site 3 was run on the same field as the 1988 sugar beet trial. As before, both the 60-ft tile spacing and 30-ft tile spacing fields were divided into subirrigated and drainage only plots. The management scheme in this trial included using different corn varieties to evaluate sensitivity of results to plant variety and applying different nitrogen levels to test sensitivity of yields to nitrogen level. The management, yield, and net revenue results are summarized in Table 2.4. Only the low 39 nitrogen regime was applied to the drainage only treatment. Yield differences by plant variety and level of nitrogen were insignificant. While the yield results show a positive benefit to subirrigation in all cases, they also show a negative benefit in terms of net revenue. Any increase in yield was offset by the additional costs of production (pumping charges and equipment depreciation, additional fertilizer and seed costs) associated with the subirrigated treatments. In this trial, the largest net revenue was for the 30-ft tile spacing DR treatment. As in the beet trial for 1989, these results demonstrate that the economic benefit to subirrigation is largely dependent on seasonal rainfall. In good rainfall years, subirrigation produces little or no economic benefit, whereas in poor rainfall years, the benefit can be substantial. EN... EM PfiQ 40 TABLE 2.4: Summary of Field Trials and Economic Analyses for 19897 SI Adv 533 i (ON) R30 40.2 0.4 $147 ($17) R15 40.4 0.3 $144 (518) DR R30 39.8 $164 R15 40.1 $162 SB #2 81 (CN) R30 38.6 0.9 $135 ($15) R15 38.4 (0.5) $129 ($23) DR R30 37.7 $150 R15 38.9 $152 2 NB #1 SI 25 (ON) R30 20.0 (0.9) $390 ($37) R15 21.6 (0.6) $416 ($34) DR R30 20.9 $427 R15 22.2 $450 =## fl 3 CN #1 SI 60 200 180.6 27.1 $172 $16 (SBT) 175.1 21.6 $151 ($ 5) 170.1 16.6 $154 (5 2) 30 200 183.6 15.2 $174 ($11) 182.3 13.9 $168 ($17) 178.3 9.9 $167 ($18) DR 60 200 153.5 $156 30 200 168.4 $185 CN #2 SI 60 200 158.5 3.3 $127 ($36) (SBT) 173.6 18.4 $156 (5 7) 164.1 8.9 $153 ($10) '30 200 178.7 14.3 $161 ($17) 180.6 16.2 $168 ($10) 171.4 7.0 $168 ($10) DR 60 200 155.2 5163 30 200 164.4 $178 _ (Source: LeCureux, 1991a) 7 Seasonal rainfall in 1989 at Site 2 was 12.46 inches and at Site 3 it was 10.42 inches. ' Corn Price = $2.30/bu. Sugar Beet Price = $40.00/ton. Soybean Price = $5.75/bu. Navy Bean Price = $24.00/mt. 9 Refers to a specific variety when more than one variety was used in the trial. 41 The 1989 soybean and dry bean trials at Site 2 can be briefly summarized as follows: Soybeans were gown on a 25-ft tiled field where half the field was subirrigated (SI) and the other half drained only (DR). Alternative management schemes including different plant varieties and row spacings were replicated on both the SI and DR plots. Statistical analysis of yields between SI and DR plots showed no significant difference at the 5% significance level. Neither was there a yield difference associated with the different row spacings. There was a slight yield difference between the two varieties. As was the case with beets and corn in 1989, the drainage only treatment had the highest economic return because of lower input costs. Navy beans were gown under the same management systems used in the soybean trial. Statistical analysis Showed the drainage only yield to be higher than the SI treatment at the 5% significance level. The economic analysis showed the DR treatment to be more profitable by $33.85 to $36.53, depending on the row Spacing. Now turning to the issue of the economic analysis of subirrigation under a rotation for the same field, available data for yield and net revenue for Site 2 and Site 3 are used to perform a basic economic analysis. For each site, 2 years of data are available. By taking the figures for the benefit to subirrigation (SI advantage) for each crop for each year and averaging them, the economic benefit of subirrigation for that specific rotation can be calculated. At Site 2, the SI advantage for corn in 1988 was $90/acre and for soybeans in 1989 was negative $18.25 / acre (the average of all SI advantage figures in Table 2.4). This translates into an average annual per acre benefit to subirrigation for a corn - soybean rotation of $36 / acre. 42 At Site 3, the SI advantage for sugar beets in 1988 for the 30-ft tile Spacing was $158. In 1989, the average SI advantage for corn in the 30-ft tile spacing field was negative $10. This translates into an average annual per acre benefit to subirrigation for a sugar beet - corn rotation of $74. 1990 Field Trial Results The 1990 field trials included sugar beet and corn trials at Site 2 and a navy bean trial at Site 3 (LeCureux, 1991d). The management scheme for the sugar beet trial consisted of two treatments, an SI treatment and 8 DR treatment, on a field with 25-ft tile spacings. Both the SI and DR plots received the same levels of inputs. Rainfall was above the average for the season. As can be seen in Table 2.5, the SI treatment yielded 1.8 more tons than the DR treatment and had a net revenue advantage over the DR treatment of $47.93 /acre. The corn trial followed the same management procedure as that used in the 1989 beet trial at Site 2. The 30-ft spacing field was subirrigated and the 60-ft spacing field had both a SI and DR plot. Two varieties of corn were planted to evaluate yield differences. All plots received the same level of fertilizer, seed, herbicides and insecticides. The yield results for the two varieties of corn varied only slightly. Highlighting the results for only one of the corn varieties (Pioneer 3573), the results show the 60-ft SI treatment had a yield of 151.6 bu/acre and a goss margin of 150.29 while the 60-ft DR treatment had a yield of 142.3 bu/acre and a goss margin of $155.67. The higher SI yield was not high enough to offset the higher production and fixed costs 43 associated with subirrigation, so the DR treatment had a goss margin $5.38/acre higher than the 81 treatment in 1990. The procedure for the navy bean trial was the same used on the corn trial at Site 3 in 1989: 30-ft and 60-ft tile spacings with both an SI and DR treatment on each spacing. Each plot was planted with three different varieties to determine if there were substantial yield differences due to plant variety. Rainfall was above average for the season and only a limited amount of water needed to be applied through subirrigation to the SI field. The SI navy beans, regardless of variety or tile Spacing, yielded better than the DR navy beans. The largest yield difference was 7.3 cwt/ acre for the 30-ft spacing with the Wesland variety. This treatment also had the largest difference in goss margin, $107/acre, over the DR treatment. This result is the opposite of what we saw with corn, where under good rainfall, yield differences between SI and DR treatments were minimal. It implies that navy beans may benefit more from subirrigation in general, showing less variability in response due to weather than corn does. This highlights an important fact: different crops respond differently to subirrigation under weather variability. Economic analyses of subirrigation under rotation should capture this effect. With this in mind, the economic analysis of subirrigation under rotation is extended by incorporating the 1990 yield and net revenue results for the same sites as above. Using the same approach applied above, the results are as follows: At Site 2, the 1988-89-90 corn - soybean - sugar beet rotation had net returns of +$90/acre, -$18/ acre, and +$48/acre, for an average annual per-acre benefit to subirrigation of $40. 44 At Site 3, the 1988-89-90 sugar beet - corn - navy bean rotation on the 30-ft spacing field had net returns of +$158/acre, -$10/acre, and +$77/acre, for an average annual per-acre benefit to subirrigation of $75. TABLE 2.5: Summary of Field Trials and Economic Analyses for 199010 E Site Crop Mgt Drain Yield Actual SI Net SI 5 ace Goal Yield AOL Rev11 Adv 2 SBT SI 25 28.0 1.8 $929 $48 (SB) DR 26.2 $881 2 CN #1 SI 60 180 151.6 9.3 $150 ($6) (SBT) 30 180 153.4 5154 DR 60 180 142.3 $156 CN #2 SI 60 180 160.6 8.1 $167 ($7) (SET) 30 180 162.6 $171 DR 60 180 152.5 H $174 1 3 NB #1 SI 60 25.7 W 5.9 $315 $87 (CN) 30 25.8 4.3 $316 $63 DR 60 19.8 $228 30 21.5 $253 NB #2 SI 60 24.4 3.8 $296 $56 (CN) 30 25.4 4.2 $310 $62 DR 60 20.6 $240 30 21.2 $248 NB #3 SI 60 21.5 6.1 $253 $89 (CN) 30 21.3 7.3 $250 5107 DR 60 15.4 $164 30 14.0 $143 (Source: LeCureux, 1991b) 2.4.2. Simulation Studies Engineers at North Carolina State University have produced a number of analyses of drainage and subirrigation using a simulation model, DRAINMOD, that has been specifically designed to choose the optimum drain spacing in designing a drainage/subirrigation system (Skaggs, 1981; Hardjoamidjojo and Skaggs, 1982; Hardjoamidjojo et al., 1982, Skaggs et al., 1982; Evans et al., 1988; Murugaboopathi et ’° Seasonal rainfall in 1990 at Site 2 was 18.55 inches and at Site 3 it was 20.70 inches. “ Corn price = $2.10/bu. Sugar Beet price = $42.00/ton. Navy Bean price = $15.00/cwt. 45 al., 1991). Some of the analyses have focused on the technical aspects of drain spacing and depth for optimum yields (Skaggs et al., 1982; Hardjoamidjojo and Skaggs, 1982) and some have looked at the economic tradeoff between increased cost of reduced spacing between drains and increased yields for drainage and/ or subirrigation (Skaggs and Nassehzadeh-Tabrizi, 1983; Evans et al., 1988; Murugaboopathi et al., 1991). The North Carolina studies distinguish between yield benefit due to drainage and that due to a combination of drainage and subirrigation. They will be presented below based on that distinction. 2.4.2.1. Benefit to Drainage Skaggs and Nassehzadeh-Tabrizi (1983) analyzed optimum drainage using DRAINMOD to simulate corn yields for a 26-year period of North Carolina weather. They used the results of the simulation model in an economic analysis of the effect of drain spacing and surface drainage on long-term average profits for corn for two soil types. Simulation results showed substantial beneficial effects of subsurface drainage in wet years and more limited beneficial effects in dry years. Delay in planting date alone in one particularly wet year would have resulted in a reduction in yield to 65% of the potential yield even if soil water stresses did not occur during the rest of the gowing season. The maximum average predicted relative yield was 78% of potential and occurred for a drain spacing of 66 feet for good surface drainage and 56 feet for poor surface drainage. At a drain spacing of 328 feet, which is the conventional Spacing between 46 drainage ditches in North Carolina, the maximum average predicted relative yield was only 52% of potential (with good surface drainage). Annual yield results showed that the benefits of drainage are widely variable on a year-to-year basis. As revealed in the Boggess and Amerling (1983) study, it is the particular pattern of this variability that affects the expected net present value. This is not captured in an economic analysis that looks at average yield differences. Skaggs and Nassehzadeh-Tabrizi tested the sensitivity of their results to weather at a particular location by running the simulations for the same soil and drainage system inputs but with 15 years of weather data from 6 other weather stations in North Carolina. Their results held for the other weather data and the maximum predicted relative yield occurred for drain spacings between 49 and 66 feet in all cases. The yield and drain spacing results from the simulations were used in the economic analysis to determine the effect of drain spacing and surface drainage on long- term average profits. Net return to land and management for alternative drainage treatments was calculated as average annual goss income minus costs. Costs included annual drainage system costs, which were the initial system costs amortized over estimated useful lifetime and the variable system costs, and corn annual production costs, which included both fixed and variable costs. The economic results Show that average profit is not maximized at the same drain spacing that maximizes yields because of the trade off between increased cost and increased yield of reduced drain spacing. Maximum yield for the poor surface drainage case occurred at a drain spacing of 56 feet, whereas maximum net return was obtained with a drain spacing of 79 feet. With improved surface drainage, the same relationship held, although net returns were maximized at a lower level than for the poor surface 47 ‘ drainage case because improved surface drainage costs were relatively high. Skaggs and Nassehzadeh-Tabrizi tested the sensitivity of the results of the economic analysis to several factors. In their analysis, the initial drainage system costs were amortized at an interest rate of 12%. Alternate rates of 10% and 14% were tested in a sensitivity analysis. The results show that while net returns vary depending on the interest rate, the drain spacing required to maximize profit remains the same. Sensitivity analysis of the results to the price of corn also showed that the drain spacings required to maximize net profits for low corn prices were only slightly larger than for the high prices. The authors also tested the sensitivity of their results to changes in the assumed potential yield of 175 bu/ acre, which could be too high or too low for some soils depending on soil fertility, management practices, and weed and insect problems. The authors found that the optimal spacings are not sensitive to the potential yield for the range of conditions considered. Thus, while interest rate, corn price and assumed potential yield have large effects on net return, they have only small effects on the drainage design required to maximize net returns. Skaggs and Nassehzadeh-Tabrizi (1983) also considered the influence of drainage on the year-to-year variation in net return. For the period 1950 to 1975, net return was positive in 21 out of 26 years for good drainage as compared to a positive net return in only 11 out of 26 years for poor drainage. The authors extended this basic analysis of variability to calculate the payoff period for an investment in improved drainage. They stressed that a farmer’s ability and or willingness to invest in drainage depends more on the length of time required for the investment to pay for itself. This depends on the size of the initial investment and the 48 increase in profits due to drainage. Using the optimum drain spacing that maximized average profits, they demonstrated that if all profits were used to pay off the initial investment, the drainage system would pay for itself in only three crop years. Another North Carolina study of yield benefit to drainage only (Hardjoamidjojo and Skaggs, 1982) showed that with the correct drain spacing for drainage only, yields can reach 80% of their potential. Higher yields (up to 20% higher yields) can only be achieved by reducing deficient soil water stresses through subirrigation. 2.4.2.2. Benefit to Drainage/Subirrigation Because studies have shown that improved drainage alone can dramatically improve corn yields (Hardjoamidjojo and Skaggs, 1982), a clear distinction must be made between benefit to improved drainage and to subirrigation. Evans et al. made this distinction very clear in their analysis of controlled drainage and subirrigation systems (Evans et al., 1988). They used the Simulation model DRAINMOD to analyze the effect of different drain spacings on yield for a drainage only base case, highlighting the tradeoff of increased yield from reduced drain spacing and increased tile costs of reducing the drain spacing. For the drainage only base case, they controlled for cost differences based on surface drainage characteristies, providing alternate calculations for both a good and poor surface drainage alternative. After establishing the base yield and net return figures for improved drainage under good and poor surface drainage conditions, they again used DRAINMOD to analyze yield increases due to controlled drainage, subirrigation/drainage, and center pivot sprinkler irrigation. (Only the subirrigation results will be presented here.) Their cost calculations for subirrigation took into consideration fixed and variable costs for 49 pump and control structures for two alternate water supplies: a deep well and surface water. Fixed costs included depreciation, interest, property taxes, and insurance. Variable costs included repairs and maintenance, fuel, and labor. Their pumping cost calculations for subirrigation reflected the fact that subirrigation is only 75% efficient. 25% of the water pumped is lost through seepage to nonirrigated areas, thus pumping charges were adjusted accordingly. Production costs were also broken down into fixed and variable costs. Production costs for subirrigation were adjusted to reflect increased nitrogen and harvesting costs associated with a higher yield goal. In this specific example, a yield goal of 130 bu/ acre was established for the drainage only simulations and 160 bu/ acre for the subirrigation simulations. (The implications of setting alternative yield goals with DRAINMOD will be discussed at length in the methodology chapter). The simulation results for the alternative scenarios of drainage only and subsurface irrigation / drainage clearly Show the tradeoff between increased yields with closer drain spacings and increased system costs. For clarity’s sake, only comparisons of the fair surface drainage alternative for each scenario are discussed here (Table 2.6). Results of the good surface drainage alternative are similar. For the drainage only base case, the highest yield (168.5 bu/ac) was achieved with a drain spacing of 50 ft; whereas the highest net return per acre was for a drain spacing of 75 ft. For the subsurface drainage/subirrigation scenario, the highest yield was for a drain spacing of 33 ft. The highest net return per acre for a well water source was $136.56 at a drain spacing of 50 ft and the highest net return per acre for a surface water source $164.33 at a drain spacing of 50 ft. 50 TABLE 2.6: Yield and Net Return Results with Fair Surface Drainage =1 I ' Optimum Associated Optimum .Associated Predicted Tile Net Return Yld / Tile Yield Spacing per acre Spacing Scenario (bu/acre) (ft) ($[ac) (yld/sp) Drainage Only 135.6 50 $135.25 134.6/75 Subirrigation Well 168.5 33 $136.56 162.9/50 Surface 168.5 33 $164.33 162.9/50 ourco: vans ot a ., ) To establish the additional benefit to subirrigation, the highest predicted net return for subirrigation was compared with the highest predicted net return for the drainage only case. Using this criterion, the benefit of subirrigation over drainage only depends on the water source. Whereas subirrigation is only marginally more profitable than drainage when a deep well is used as the water source, it can boost average profits by $29.08 per acre when a surface water supply is available. These results Show that the cost of the water source can be an important factor affecting profits with subirrigation. The authors conclude that for the conditions assumed, subirrigation would be the most profitable choice. But they also raise the point that since the net profit with subirrigation is only slightly higher than that with conventional subsurface drainage, some farmers might not want to take the risk of the additional capital outlay. To address this issue of risk, Evans et al. (1988) considered year-to-year variation in profit over a 10-year period for alternative drain spacings in a conventional drainage system compared to several alternative subirrigation systems which varied by drain spacing and water source (surface water versus gound water). After determining the tile spacing that gave the highest long-term average profit for each option, the authors found that conventional subsurface drainage provided the most profit for a continuous corn production system, but it also had the highest loss in one year out of the ten. 51 Subirrigation provided the most consistent year-to-year profit. A net profit was predicted every year. The authors concluded that from the standpoint of stabilized farm income, subirrigation might be the most desirable option, but from the standpoint of long-term average profit, subsurface drainage might be optimal. Murugaboopathi et al. (1991) extended the above analysis to evaluate the sensitivity of results to soil type and to evaluate the impact on optimum drain spacing and on optimum net returns of including soybeans in a corn - soybean rotation. The economic analysis was conducted to determine the drain Spacing that gives the maximum net return to land and management for the corn - soybean rotation. The procedure used mimics the Evans et al. (1988) study in almost all respects, with the exception that Murugaboopathi et al. did not include a controlled drainage or sprinkler irrigation scenario, they used a longer period of weather data (37 years), and they included much more detailed breakdown of the pumping system characteristics necessary for alternative drain spacings. As with the previous study, to simplify matters, only the results for the fair surface drainage alternative for one of the soil types (Table 2.7 and Table 2.8) are presented here. Results for the good surface drainage case and for the other soil evaluated are quite similar to those presented below. 52 TABLE 2.7: Results for Corn for a Rains Soil: Fair Surface Drainage fl_ T. Optimum Associated Optimum .Associated Predicted Tile Net Yld / Tile Yld (bu/afife) Spacing Return Spacing Management System and YR(%) (ft) (S/ac) (yld / sp) Drainage Only 130.7 50 $70.89 126 / 80 758 Subirrigation 168. 7 33 L 5111 .89 155.2 / 50 96% (Source: Nuruga oopathi et al., 1531) l TABLE 2.8: Results for Soybeans for a Rains Soil: Fair Surface Drainage Optimum Optimum Predicted Associated Net Associated Yield Tile Return Yld / Tile (bu/acre) Spacing per acre Spacing Scenario and YR(t) (ft) (S/ac) (yld / sp) 1. Drainage Only 61.6 50 $132.22 59.5 / 80 88% 2. Subirrigation 67.2 33 $122.59 61.6 / 66 96% (Source: Muruga oopat 1 et a ., 1) For the drainage only treatment, the maximum average relative corn yield was 75%. Drought stresses prevented the relative yield from reaching 100% of the potential yield. For the SI treatment, reducing drought stresses allowed corn yields to reach 96% of potential. The yield results also Show that the maximum relative corn yield with subirrigation is obtained at a narrower drain Spacing (33 ft) than with drainage only, where the maximum relative yield is obtained at 50 ft. For soybeans, there is much less difference between the maximum average relative yield for SI and DR. With DR, soybean relative yield can reach 88% of potential, compared to 78% for corn. These results imply that soybeans are much less responsive to subirrigation than is com. " YR (%) is the relative yield. 53 The economic analysis revealed an important issue. In looking only at the corn results, the benefit to subirrigation was $41 / acre. Subirrigation increased profits by 57.7% over drainage only. This is a very impressive gain. But in looking at the soybean results, subirrigation resulted in a loss of $9.63 / acre compared to drainage only. Analyzing the corn - soybean rotation, the optimum drain spacings of 66 ft for the Rains sandy loam and 98 ft for the Portsmouth soil resulted in increased net profits for subirrigation over conventional drainage of 18% for the Rains soil and 22% for the Portsmouth soil. 2.5. Directions for the Current Economic Analysis of Subirrigation The studies summarized above provide valuable backgound. The issues they have raised, the approaches that were taken in the economic analyses, and the gaps they left have Shaped the direction of the current study. The Huron County and other Michigan studies of subirrigation and drainnage have provided Site specific information about costs, soil types, system design and management. The North Carolina studies have shown how useful simulation can be in analyzing an investment decision that has a long horizon. Simulation provides flexibility to look at water table management from several different angles and draw important conclusions about system design and the profitability of subirrigation and drainage. The two general economic studies of irrigation provided added insight into how economists approach investment analyses from a somewhat different perspective than noneconomists. The results of all of the above studies have led to the following delineation of the decision setting in the current analysis: 54 The analysis is based on a hypothetical farm in Huron County in the Saginaw Bay area of Michigan. The soil at the farm is a Kilmanagh soil, the prevalent soil type in the county. The total number of cropped acres is 400, but the investment decision concerns only a 40-acre field where a drainage system is in place. Three scenarios are hypothesized concerning water availability: 1) The farmer has access to a private surface water source. 2) The farmer has the potential to exploit gound water resources. 3) The farmer has the opportunity to participate in an irrigation district where a water use fee of between $25 and $35 /acre must be paid. The investment options under consideration include modifying the existing drainage ornly WTMS by reducing the drain spacing to 20 feet (DR20) or 30 feet (DR30), keeping the existing drainage only system intact (DR60), converting the existing drainage only WTMS into a subirrigation system at 20-ft tile spacings for a surface water source (51208) or a well water source (SIZOW), or into a subirrigation system at 30-ft tile spacings for a surface water source ($1308) or a well water source (SI30W), or into a subirrigation system at 60-ft tile spacings for a surface water source (SI60S) or a well water source (SI60W). Chapter 3 provides a thorough accounting of the cost assumptions used and the approach taken in the economic analysis. 2.6. Gaps in the Study Both the Huron County and North Carolina studies stressed that farmers use a rotation scheme and because the benefits to subirrigation-drainage vary widely by crop, a 55 thorough economic analysis should explicitly consider the benefit of subirrigation to the rotations commonly used in subirrigated fields. Due to time limitations, the present economic analysis considers returns to corn alone. Corn was chosen because it is the largest cash crop gown in Huron County and therefore has a large economic significance for the county. In addition, of the four crops most often gown in a rotation, corn, soybeans, dry beans, and sugar beets, it is the one that has the lowest net returns per unit of output and the economic results could be interpreted as being a lower bound on what farmers could expect from investing in improving their water table management system. A second gap is that no attempt has been made to incorporate either positive or negative environmental spillover effects in the economic analysis of subirrigation. Several studies described above in the water quality impact section and water availability section (Fogiel, 1992; Fogiel and Belcher, 1991; Kittleson et al., 1990a, 1990b; Kittieson and He,1990; He et al., 1991, 1992) have provided some insights into the environmental implications, but the present level of scientific knowledge of these effects is sufficiently limited that it is premature to incorporate environmental impacts in the present analysis. AS mentioned above, current research by Michigan State University researchers at the Saginaw Rain Shelter site will eventually provide some of the necessary environmental data necessary to extend the economic analysis of subirrigation to include effects on gound and surface water contamination and erosion. CHAPTER3 METHODOLOGY 3.1. Introduction Farmers are faced with many types of uncertainty in their decision environment. Production risks and financial risks are two of the most important sources of uncertainty. Production risk includes weather variability, the threat of pest infestations and disease, and uncertain consequences of production management decisions such as the choice of plant variety and cultural practices or the timing of production activities. Financial risk includes price risk and uncertainty stemming from the financial structure of the business. Financial risk from price variability of inputs and outputs arises from forces outside the control of the farmer. On the other hand, financial risk deriving from the structure of the business is geatly affected by capital investment decisions and choice of financing arrangements for those investments, both of which are determined by the farmer. Financial decisions which leave the farmer highly leveraged can exacerbate production and price risks because fluctuations in output or prices interfere with the farmer’s ability to make regular debt payments. Yet many capital investments are in fact made to reduce production variability. Installing an irrigation system is an example of such an investment. Irrigation is characterized as a yield-increasing, risk-reducing strategy. But these advantages must be compared to large investment costs in the S6 57 irrigation system and increased production costs and variable irrigation costs associated with pumping. The investment is risky from a financial perspective, so in one sense, by installing an irrigation system, the farmer might be trading production risk for financial risk (Boggess and Amerling, 1983). This tradeoff is quite important with irrigation investment decisions in humid regions, where the variability in weather patterns over the economic life of an irrigation investment has a significant impact on the profitability of the investment (Boggess et al., 1982 and 1983; Boggess and Amerling, 1983). This dilemma arises because of the sensitivity of expected net present value (ENPV) to the sequence of net returns flowing from the investment over the lifetime of the system. If several poor rainfall years follow installation of an irrigation system, the system begins paying for itself immediately. On the other hand, if several good rainfall years follow, the system is not contributing to significantly increased returns yet is costing the farmer in principal and interest payments on the investment loan, or in the opportunity cost of lost interest if the investment was purchased with cash. The objectives of this study are outlined in detail in the introductory chapter and the decision setting is described in Chapter 2. This chapter provides a description of the general approach used and the specific methods employed in the economic analysis of alternative water table management systems (WTMSS). The analysis proceeds in six stages. (1) The production and investment costs associated with gowing corn under the different options are determined. 58 (2) The Simulation model DRAINMOD is used to generate corn yield and irrigation application data for the drainage-only and subirrigation options over a 33-year period of historic weather data. (3) Monte Carlo simulation is applied to generate one hundred 30-year NPVS by drawing randomly from the yield and irrigation volume data. (4) The expected NPV (ENPV) and standard deviation of NPV (SDNPV) are compared across systems for both water sources. (5) The probability distributions of NPV generated in the Monte Carlo simulation are compared in two stages: a) using first and second degee stochastic dominance (FSD and SSD) criteria; b) using the stochastic dominance with respect to a function efficiency criterion to compare those distributions which are not stochastically dominated by FSD or SSD. (6) A sensitivity analysis is performed to compare the outcome of the base analysis with outcomes of analyses run with a range of product prices, investment costs, and yield assumptions. Both the NPV analysis using the base weather sequence and the Monte Carlo simulations are performed using an investment analysis computer progam written in Quick Basic by the author. The progam allows geat flexibility in changing parameter values of key variables for the sensitivity analysis. A copy of the QuickBasic progam code is included in Appendix A. The methods, key assumptions and relevant theoretical backgound for the simulation, the NPV analysis, the Monte Carlo simulation, and the risk analysis are described in detail below. 59 3.2. Simulation 3.2.1. Simulation as a Tool in Economic Analyses Simulation has become an important tool for agicultural economists interested in studying decision making and risk analysis at the farm level (Anderson, 1974a). Sources of risk in agicultural production, including pests and weather, are an integal component of simulation models. In a figurative sense, the simulation models provide researchers with a computerized experimental plot (Boggess et al., 1983) where they can hold constant key decision variables in an agicultural production system and observe the results of different scenarios under a long sequence of historical weather. For example, when considering several alternative drain spacings in a drainage or subirrigation system, the effect of a particular drain spacing under drainage only and subirrigation can be compared for the same weather sequence. Then the drain spacing can be changed and the same weather sequence run and the results compared for the different drain spacing and management regimes. This ability to make repeated comparisons of high relative precision in the same environments is unique to Simulated experiments (Anderson, 1974a). Simulation has been extremely useful in economic analyses that consider risk. Risk analysis requires information on the probability distribution of decision alternatives. Yet actual data at the farm level are rarely available for long enough time series to derive these probability distributions. Simulated yield data can fill this gap. For example, subirrigation has only been actively practiced in Michigan for just over a decade, yet hourly precipitation data is available Since 1958. In this case, 33 years of yield data can be simulated for a technology that has been gowing in use only in the last 10 years and for which the availability of actual yield data is very limited. 60 In addition, simulated yield data have an advantage over historic data in that technology is held constant in the simulation. This obviates the need to detrend the data, thus making it easier to isolate variation in output due to risk influences. While allowing much flexibility, simulation also has certain drawbacks. As with any modeling exercise, Simulation cannot possibly capture all of the complexity of an agicultural production environment. The ceterus paribus assumption of economics with all of its drawbacks holds for simulation as well. Most models tend to focus on one source of variability at a time. For example, weather variability over a long historic record is captured in the present analysis, but the soil is assumed to be a stable water- holding matrix of constant fertility and structure and pest and disease influences are ignored. Some critics argue that even the variability in weather that is captured by using historic weather records in simulations Still provides only a restricted sample from a stochastic process (Anderson, 1974a). In the current analysis, random draws are made from the “parent" yield distribution with the assumption that the historic weather-yield distribution provides an acceptable representation of expected future weather-yield outcomes. Given the lack of accurate weather forecasting, this approach is warranted, provided that the results are presented with the appropriate caveats about the assumptions used in the analysis. 3.2.2. DRAINMOD The simulation model used in this analysis to study the effects of drainage and subirrigation on yields is DRAINMOD (version 4.01). It was developed by researchers at North Carolina State University at Raleigh to study and better design multicomponent 61 water management systems comprised of surface and subsurface drainage and / or subirrigation, and/ or sprinkler irrigation components. DRAINMOD uses recorded weather data to simulate the performance of a given site specific drainage design over a long period of climatological record. The model is described in detail elsewhere (Skaggs, 1981) and will be presented only briefly below. DRAINMOD uses crop, weather, and soil input data to compute the water balance in the soil profile. It simulates infiltration and runoff processes based on the specified drainage system design and then computes daily water table depth, depth of dry zone at the surface, subsurface drainage, runoff, and evapotranspiration (ET). The water balance results are used in the crop response component of the model. The model has three separate components that are summarized in a first-order yield equation: YR = YR,,,"‘YR,,"YRp where YR is the relative yield, YR. is the relative yield under wet conditions, YRd is the relative yield under dry conditions, YRP is the relative yield if planting is late. All three terms, YR,” YRd, YRP, are expressed in percentage terms and are initially assumed to be 100%. Then subtractions from YR”, YRd, and YRp are made for excessively wet conditions, excessively dry conditions, and delays in planting, respectively. This approach assumes that there are no interactive effects among the three model components. For example, it assumes that the effect of excessive soil water conditions is independent of the existence of deficit soil water at another time in the gowing season. 62 The relative yield output of DRAINMOD must be converted into a predicted yield in bushels per acre (bu/acre). The conversion is made by multiplying the relative yield by a maximum potential yield (POTY) figure expressed in bu/ acre. For the Huron County Kilmanagh soil of this analysis, the representative maximum potential yield for nonirrigated corn is assumed to be 140 bu/acre and that for irrigated corn to be 180 bu / acre. A sensitivity analysis of the economic results to changing these POTY assumptions is performed in Chapter 4. The input data requirements necessary to run DRAINMOD are extensive. They fall into three major categories: soil-related inputs, crop specific inputs, and drainage design inputs. Each is described briefly below and some of the most important input values used in the simulations are included in Table 3.1. A complete listing of DRAINMOD input values is included in Appendix B. Crop specific parameters include planting date, seed bed preparation time, length of gowing season, and effective rooting depth as a function of time. The actual length of time required for seedbed preparation and planting depends on size of operation, equipment and labor available, and many other factors. A period of 8 days was chosen as being typical for a Saginaw Bay area farm of 400 acres where half the acres are planted to corn and corn is the crop planted first. Values used for the other parameters are also representative of Saginaw Bay conditions.l ’ Typical values for the Saginaw Bay area were chosen after consulting with a Huron County Encnsion Agent, James LeCureux, and crop and soil scientists (Dr. Maurice Vitosh and Dr. Francis Pierce at Michigan State University. 63 TABLE 3.1: Summary of DRAINMOD Inputs . a. - WW Depth to restrictive layer 125 - 150 cm Saturated hydraulic conductivity ‘ x < 70 cm 3.30 cm/hr 70 cm <- x < 112 cm 2.80 cm/hr I 112 cm <- x < 125 cm < 0.15 gm/qf : Plant-available water content at wilting 0.22 cm [cm Required drainage volume for field work 3.40 cm . Minimum daily rain to stop field work 1.27 cm , Time after rain before work can resume 2 days WW Drain depth 102 cm Drain diameter 4 inches Surface depressional storage poor to fair surface drainage 2.5 cm tDrain spacings 20, 30, 60 ft o r e Crop Continuous corn Desired planting date Not > May 10 Working time for seedbed preparation 8 days Length of growing season 105 days Maximum effective rooting depth 45 cm Dry slope coefficient 1.05 Net slope coefficient 0.68 SF 1.25 Maximum potential yield irrigated 180 bu/ac nonirrigated 140 bu/ac (A apte rom Evans et al., 1558) Drainage system parameters are drain depth and spacing, effective depth of impermeable layer, depth of surface depressional storage, drainage coefficient, geometric parameters used in computing the drainage rate under ponded surface conditions, and depth of water in the outlet as a function of time. These values are Site and system specific. A hypothetical field site was chosen and several WTMS designs elaborated by Dr. Harold Belcher in the Department of Agicultural Engineering at MSU (Appendices C and D). Values for drain depth and depth of the impermeable layer are representative of values found in Huron County. They were chosen after consulting Huron County Soil Surveys (USDA, 1980) and other publications which provide Huron County specific information (LeCureux and Booms, 1990a-d; LeCureux 1991a,b). A 64 large surface depressional storage parameter was used to reflect poor surface drainage conditions at the hypothetical site. Climatological inputs include hourly rainfall and daily maximum and minimum temperatures. There is no weather reporting station in Huron County that had a long enough record of hourly precipitation so data was used from the Flint National Climatological Station for the period 1958 to 1990. Flint is the closest station to the Saginaw Bay area for which hourly rainfall data are available.2 One drawback of DRAINMOD is that it requires hourly precipitation data and these data are not readily available for many stations. As a check of the similarity of Flint average climatological data and that for stations in Huron County, a comparison was made between average monthly temperature and precipitation data for the Flint weather station (Genesee County) and two stations in Huron County, Bad Axe and Harbor Beach (Appendix E) for the period 1951-1980. Even between the two stations in Huron County, there is quite a difference in average monthly precipitation, with Harbor Beach receiving more rainfall, especially during the growing season. Average maximum and minimum temperatures for the two Huron County sites also differ significantly. Growing season temperatures in Bad Axe are generally higher than those in Harbor Beach. Comparing the two Huron County stations with Flint, Bad Axe and Flint have very similar temperatures, while Harbor Beach and Flint have similar growing season rainfall. Flint tends to have higher average monthly rainfall than either Huron County station, except during July, when both stations have higher precipitation than Flint. Bad Axe receives 1.69 inches less rainfall than Flint 3 Hourly precipitation data were obtained from the Midwest Regional Climate Center, Champaign, Illinois. Daily maximum and minimum temperature data were obtained from the Michigan Department of Agriculture, Environmental Division, Department of Climatology. 65 during the growing season (May-September) while Harbor beach receives only 0.36 inches less than Flint over the growing season. These data are similar enough that the weather data for Flint could feasibly represent growing conditions in Huron County for the purpose of this study. Soil property inputs for DRAINMOD include saturated hydraulic conductivity of each soil horizon, soil water characteristics, relationships for the drainage volume and steady upward flux as functions of water table depth, Green-Ampt infiltration parameters, and water content at the wilting point. Additional soil-related inputs that allow the model to simulate trafficability constraints include threshold values for the drainage volume required for field operations during planting and harvesting periods and for the amount of rainfall necessary to postpone field operations. Site specific soil measurements at field sites in Bannister for a Ziegenfuss soil and Bad Axe for a Kilmanagh soil were provided by Dr. James Crum of the Crop and Soil Sciences Department at Michigan State University. The saturated hydraulic conductivity values were taken from Huron County Soil Surveys (USDA, 1980). The surveys provide a range of possible values for each soil layer. For the base analysis, an average value was chosen for each layer. All of the soil properties are very site specific, varying somewhat even within a given soil type. This necessitates site specific measurements of hydraulic conductivity, depth to restrictive layer, and soil water characteristics. This is an obvious limitation, since results of the simulations and the economic analyses derived from the yield results of the simulations must also be presented as being site specific. However, this is quite 66 representative of reality. Each farm is unique. The present analysis provides results that farm decision makers must adapt to their own particular situation. 3.2.2.1. Model Validation DRAINMOD has been validated using field data for North Carolina, Iowa, Ohio, and India (Skaggs et al., 1981; Hardjoamidjojo et al., 1982; Skaggs et al., 1982). Belcher validated the water balance component of DRAINMOD using field data from Bannister, Michigan, for a Ziegenfuss soil (Appendix F). Validation of the yield component was done for the present analysis using both aggregate county-level yield data and farm-level yield data. The long-term simulations for a Kilmanagh soil and the Flint climatological station data were run using the input data shown in Table 3.1 above. Complete results of these runs are presented in Chapter 4. The results of the drainage-only simulations at a 60-ft spacing (DR60) were validated against historic Genesee County aggregate corn yield data (Michigan Department of Agriculture, 1958-91) and historic farm-level corn yield data from a farm near Reese in Tuscola County.3 The Genesee County aggregate corn yield data were chosen over Huron County aggregate yield data because the Flint reporting station is in Genesee County. The Reese farm was chosen because of its relative proximity to the Flint weather reporting station‘ and because it has a wet loamy soil in the same soil classification category as the Kilmanagh soil of the analysis. No site-specific weather data was available for the Reese farm, so the comparability of the simulation predicted 3 The Reese corn yield data were made available by Dr. Roy Black of the Department of Agricultural Economics at Michigan State University from TELFARM records. ‘ Reese is approximately 20 miles directly north of the Flint reporting station. 67 yields and the actual farm-level yields is only approximate. The same is true for the comparisons of the county-level yield data and the simulation predicted yields. The comparisons give a global view of closeness of predicted and actual yields in the study area. In order to compare DM predicted yields with the historic yield data, it was necessary to detrend the historic yields to remove the effect of technological change. A preliminary step before detrending of the data was to test for heteroskedasticity. This was done by running a regression on corn yield versus time’ (Figures 3.1. and 3.2.) and plotting the residuals as a function of time. Plot of Genesee Historic Yields and Estimated Yield with Residual Plot 120 100‘ Corn Yield (bu/acre) Time + Genesee Yld -°- Estimated Yld + Residuals Figure 3.1. 5 Yield data for Genesee county are for 1958 to 1991 and for the Reese farm are for 1963 to 1988. 68 Plot of Reese Farm Historic Yields and Estimated Yield with Residual Plot 140 _ .20. w A $1004 A ‘ A A V 3 90‘ v V V ' ' E ,0. U" V 40- 3 2° A c 0 K A Ry 7i 3,, \HJ V V \\. 40- ‘601953 19155'1937'19B9'1971j1973H975 1977 1979'19'31'19'33'19'35'19‘37' Time + Reese Yld -l— Estlmated Yld + Residuals Figure 3.2. Visual inspection of the residuals implied that heteroskedasticity was not present. However, a second check for heteroskedasticity, Spearman’s rank correlation test was also preformed (Gujarati, 1978). For the Genesee historical yield data, the computed t value was 1.47 and for the Reese farm yield data it was 0.79. For both cases the t value was smaller than the critical t value (t = 2.04) at the 5% significance level, and thus we can reject the null hypothesis of heteroskedasticity. The historic and detrended yield data along with the DRAINMOD predicted yields are presented in Tables 3.2 and 3.3. In these tables, the last column, DIF, shows the difference between the detrended historic yields and DM predicted yields (DIF = historic detrended yields minus DM predicted yields). For the Genesee County data, the average difl'erence is -0.7 bu/acre with a standard deviation of 13.2 bu /acre. For the 69 Reese farm data, the average difference is -0.1 bu/ ac with a standard deviation of 22.4 bu/ac. Figures 3.3. and 3.4. show graphically the detrended historic yields and the DRAINMOD predicted yields. For the aggregate Genesee county yields, DRAINMOD accurately predicted most downward trends in yield and only once predicted a much lower yield when in fact the yield was high (1974). To some extent, in the case of low yield predictions when yields were in fact low, DRAINMOD tended to exaggerate yield losses (for example, in 1963, 1965, and 1978). For the aggregate county-level data, the standard deviation of the predicted yields was higher than for the detrended historic yields. Aggregation of yields to the county level tends to mask variability at the farm level (Fulton et al., 1988), so the higher standard deviation of the predicted yields is valid since the simulation is field specific. For the Reese farm data, DRAIN MOD performw less well. As expected, the detrended farm-level yields show much more variability. The standard deviation is 21.4 bu/ acre compared with 11.4 bu /acre for the county-level data. DRAIN MOD predicted yields for the 1963-1988 period had a standard deviation of 19.1 bu/acre, which was only slightly lower than that for the farm-level yields, but it missed some important downward trends in yield, missing eight of twelve significantly low historic yields. In addition, twice it predicted low yields when in fact yields were high. The weather data which the Reese farm experienced could be significantly different from those recorded at the Flint reporting station, so this comparison is a rough one. For both the county-level and farm- level yields, for example, DRAINMOD predicted very low yields for 1963 when the historic data shows average yields. However, inspection of the Flint weather for 1963 shows a period of 33 days in a critical growth stage where no significant rainfall fell. TABLE 3.2: Genesee County Historic and Detrended Yield Compared with DM Yields 7O DM Pre- Hietoric Detrended dicted Yield Yield Yield Year (bu/ac) (bu/ac) (bu/ac)‘ DIP 1958 55.5 105.8 110.0 -4.2 1959 53.5 102.3 90.4 -11.9 1960 47.4 94.7 94.9 -0.3 1961 58.2 103.9 107.7 -3.8 1962 54.6 98.8 110.0 -1l.2 1963 47.2 89.9 61.2 28.7 1964 60.4 101.6 110.0 -8.4 1965 55.0 94.6 79.6 15.0 1966 69.4 107.5 104.8 2.7 1967 76.0 112.6 109.6 3.0 1968 83.8 118.9 110.0 8.9 1969 70.4 103.9 105.5 -1.6 1970 74.7 106.7 110.0 -3.3 1971 59.0 89.5 110.0 -20.5 1972 75.0 104.0 110.0 -6.0 1973 70.0 97.4 110.0 -l2.6 1974 75.0 100.9 83.7 17.2 1975 56.0 80.4 110.0 -29.6 1976 56.1 79.0 107.8 -29.8 1977 73.1 94.4 110.0 -15.6 1978 73.3 93.1 69.4 23.7 1979 98.8 117.1 110.0 7.1 1980 96.6 113.4 110.0 3.4 1981 100.0 115.2 110.0 5.2 1982 103.8 117.5 110.0 7.5 1983 97.9 110.1 109.9 0.2 1984 91.4 102.1 99.2 2.8 1985 105.4 114.5 110.0 4.5 1986 96.7 104.3 110.0 -5.7 1987 84.0 90.1 73.9 16.2 1988 65.7 70.3 67.7 2.6 1989 94.3 97.3 110.0 -12.7 1990 109.9 111.4 110.0 1.4 1991 101.2 101.2 Avg Dif 101.3 101.4 -0.1 SD Dif 11.4 14.9 13.2 ° Relative Yields were converted to bu/ac yields by multiplying by a potential yield of 110 bu/ ac. 71 TABLE 3.3: Reese Farm Historic and Detrended Yield Compared with DM Yields DM Pre- Historic Detrended dicted Year Yield Yield Yield (bu/ac) (bu/ac) (bu/ac)7 DIP 79.0 125.4 72.3 53.1 58.0 102.6 130.0 -27.4 60.0 102.8 94.1 8.7 65.0 106.0 123.9 -17.9 98.5 137.8 129.5 8.3 55.0 92.5 130.0 -37.5 82.7 118.4 124.7 -6.3 118.3 152.2 130.0 22.2 63.3 95.4 130.0 -34.6 97.6 127.9 130.0 -2.1 78.0 106.5 130.0 -23.5 104.0 130.8 98.9 31.8 122.2 147.2 130.0 17.2 79.5 102.7 127.4 -24.7 87.3 108.7 130.0 -21.3 75.0 94.6 82.0 12.6 103.0 120.8 130.0 -9.2 a 135.0 151.1 130.0 21.1 115.2 129.5 130.0 -0.5 33.0 145.5 130.0 15.5 121.0 131.7 129.9 1.8 130.0 138.9 117.3 21.7 92.0 99.1 130.0 30.9 130.0 135.4 130.0 5.4 88.0 91.6 87.4 4.2 72.0 73.8 80.0 -6.2 I 118.0 118.7 -0.7 21.4 19.1 22.4 Therefore, it appears that DRAIN MOD accurately predicted a large yield loss under those conditions and the discrepancy possibly derives from differences in localized weather patterns. As a final check of the validity of DRAINMOD’s output, the yield and irrigation application amounts for drainage only and subirrigation were shown to Dr. Jeffrey Andresen, an agrometeorologist at Michigan Department of Agriculture’s Climatology Division. He judged them to be reasonable predictions after examining the daily weather data used in the simulations. 7 Relative Yields were converted to bu/ac yields by multiplying by a potential yield of 130 bu/ac. 72 120 a O ‘1 O Comaarison of Genesee Yields ith DM Predicted Yields (“ 1 10) ml A m A 1 Corn Yleld (bu/ac) 4' A - ’\ J x ‘ 60 1958 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 I I I I I l T I l I T j TTTTTTTTTTTTTTTTTTTTT Time + Genesee YLD -+- DMKIZ Figure 33. 160 Comparison of Reese Farm Level Yields With DM YR (x 130) - dr6k12 150‘ . 1 AA . ill N1,” ‘1 x \ 1933'19'55 ‘1937 r19397971 '19'73‘19'75 '1977'1979 '19'97'19'93 '19?!» Win Time + Reese Yld -+— OH Rel Yld ’ 130 Figure 3.4. 73 The validation indicated that DRAINMOD provides a sufficiently reasonable approximation to the yield response to weather variability to justify using its results for the economic analysis. 3.3. Economic Analysis In the economic analysis, base values of financial parameters are used. The values were chosen as representative of actual conditions in the Saginaw Bay area to represent a base scenario. In order to determine the sensitivity of the results of the economic analysis to changes in parameters such as marginal tax rate, price of output, the discount rate, etc. a sensitivity analysis is performed as a final component of the economic analysis. 3.3.1. Base Calculations Annual gross income for each WTMS is calculated from DRAINMOD’s predicted relative yield (YR), the assumed potential yield (POTY), and the price of corn (PC) as follows: Annual Gross Income 2 YR / 100 * POTY * PC. The potential yield is defined as the yield that would be obtained if soil water conditions were ideal during the entire growing season. The potential yield for subirrigated corn is taken to be 180 bu /acre while that for nonirrigated corn is taken to be 140 bu/acre. These figures were chosen based on historical records for the Saginaw Bay area (Michigan Department of Agriculture, 1958-1991) and after discussion with an extension agent in Huron County, James LeCureux, who is familiar with subirrigated and conventional drainage production systems. 74 The base corn price is held constant at $240/bu throughout the analysis. Since price risk is constant across management strategies in any particular year. Sensitivity analysis is carried out for alternative output prices as described in Section 3.4. These calculations represent the annual gross income for a given water table management system, up; the increase in gross income over that which would be obtained for the existing system, DR60. In Chapter 4, separate calculations of gross margins over the existing system are made in both the base weather sequence NPV analysis and in the expected value-variance analysis. System costs include both the investment costs and variable costs associated with the operation of the system. The initial investment costs for the various WTMS options vary depending on the water supply source and the drain spacing. In this analysis, it is assumed that a conventional drainage system with 60-ft tile spacings is already in place on a 40-acre field (Appendix C). The investment options include: DR20: Modify the existing drainage system by adding 2 extra laterals between the existing laterals so that the resulting drainage system has 20-ft tile spacings. DR30: Modify the existing drainage system by adding 1 extra lateral between the existing laterals so that the resulting drainage system has 30-ft tile spacings. DR60: Maintain the existing system at 60-ft tile spacings. SIZOS: Retrofit the existing drainage system to a subirrigation system with tile spacings at 20 feet and a surface water source for irrigation. 81308: Retrofit the existing drainage system to a subirrigation system with tile spacings at 30 feet and a surface water source for irrigation. SI6OS: Retrofit the existing drainage system to a subirrigation system with tile spacings at 60 feet and a surface water source for irrigation. 75 SIZOW: Retrofit the existing drainage system to a subirrigation system with tile spacings at 20 feet and a well as the water source for irrigation. SIBOW: Retrofit the existing drainage system to a subirrigation system with tile spacings at 30 feet and a well as the water source for irrigation. SI60W: Retrofit the existing drainage system to a subirrigation system with tile spacings at 60 feet and a well as the water source for irrigation. TABLE 3.4: Description of Investment Options Investment Option Water Source Description DR20 None Drainage only at 20-ft tile spacing DR30 None Drainage only at 30-ft tile spacing DR60 None Drainage only at 60-ft tile spacing (existing system-mo investment) SIZOS Surface Subirrigation at 20-ft tile spacing 81308 Surface Subirrigation at 30-ft tile spacing SI6OS Surface Subirrigation at 60-ft tile spacing SIZOW Well Subirrigation at 20-ft tile spacing SI30W Well Subirrigation at 30-ft tile spacing SI60W Well Subirrigation at 60-ft tile spacing Site specific designs for each of nine different possible WTMSS were sent to six drainage/subirrigation contractors. Four of the six contractors provided cost estimates. In general the subirrigation/ drainage contractors do not install water supply systems so estimates for the well and the pump were obtained from pump supply firms and well drilling firms. 76 The cost estimates provided by the drainage/subirrigation contractors for retrofitting the existing drainage system to either a drainage-only system at narrower drain spacings or a subirrigation system at three alternate drain spacings all fell within a range of $1,000. The cost estimates for the well and the pump varied significantly enough that sensitivity analysis of the economic results to these cost estimates is performed in the economic sensitivity analysis section of Chapter 4. Table 3.5 contains a summary of the average costs of individual components of the various WTMSS and Table 3.6 presents the total investment and annualized per-acre investment cost for each alternative based on a 40-acre system. Appendix G contains the complete cost estimates provided by the drainage/subirrigation contractors. For the economic analysis, the initial investment cost is broken down into per acre figures. The investment costs for the existing conventional drainage system are set to zero. For depreciation calculations, the life expectancy of each of the different system components is as follows: Control structure : 30 yrs Irrigation risers : 30 yrs Deep well : 30 yrs Pump and electric power unit : 15 yrs Drainage tile : 30 yrs There are no salvage values anticipated for any of the system components. Calculation of depreciation was done based on the straight line method. The pump is depreciated over 7 years and the other system components over 15 years. The short-term interest rate is 10.5% and the after-tax required real rate of return is assumed to be 4%. 77 TABLE 3.5: Summary of Component Costs for a WTMS Initial Component Description and Specifications Cost Drainage tubing 4 inch corrugated plastic pipe $0.37/ft 6 inch diameter water supply pipe $3.17/ft 6 inch main $1.18/ft 8 inch main $1.63/ft 10 inch main $2.66/ft 12 inch main $3.49/ft (costs include installation) Water Supply nggp_ggll 8-inch, gravel-packed, 100 ft deep, $15,000 10-ft vertical lift, 200 gal/min SI pump a 7.5 hp pump and electric motor $ 2,000 power unit Installation (includes intake and $ 3,000 discharge lines) Electrical Service Hookup $ 400 Sggggge watg; River, Stream, Creek, Lake, Canal SI pump 8 3.5 horsepower pump rated at 200 $1,200 power unit gal/min Installation (includes intake and $3,000 discharge lines) Electrical Service Hookup $ 400 Control Head Stands 5 626 ‘ Structure Irrigation Inlets $ 117 Sourcesta (includes installation costs) as"rept¢befitat ve an- contractor estimates. 78 TABLE 3.6: Total Investment and Annualized Per-Acre Investment Cost for a 40-Acre System Annualized Drain Total Investment Water Spacing Investment Costs Source H __ _ (per acre) None 20 5 21,062 $ 30 None 30 $ 10,748 $ 16 None 60 Base Case Base Case Surface 20 $ 37,740 $ 55 81308 Surface 30 $ 27,475 $ 40 ' SIGOS Surface 60 $ 17,381 $ 25 Well 20 $ 53,540 $ 77 Well 30 5 43,275 $ 63 Well 60 S 33,181 $ 48 - I I I l Water table management system operating costs can be broken down into labor costs, electricity costs, and repairs and maintenance costs for the different system components. Conventional drainage systems do not require management. Subirrigation systems do. Different management tasks include removing flashboards from the control structure during wet periods, replacing these boards after sufficient drainage has occurred, and monitoring the water table level in the field. It is assumed that these tasks require one-quarter hour per day during the irrigation season and labor is valued at $6.00/hr for the cost calculations. Electricity costs depend on the number of acre-inches of irrigation water applied annually and the per acre-inch cost of pumping. The per-acre annual irrigation application amounts are one of the outputs of DRAINMOD and the per-acre-inch pumping costs vary by water source. Based on Huron County studies (LeCureux and 79 Booms, 1990a-d; LeCureux, 1991a,b) average pumping costs were set at $2.25 per acre- inch for a well water supply and at $1.50 per acre-inch for a surface water supply. Total per-acre annual electricity costs are calculated by multiplying the acre-inch costs by the number of inches applied during the season. The operating and repair costs for different system components were determined from relevant publications (Evans et al., 1988) and from interviews with the Huron County extension agent, Jim LeCureux. Operating costs for control structures and irrigation risers are assumed to be 1% of the average annual investment cost of each of these components. Repair and maintenance costs for pump are assumed to be 5% of average annual investment cost. All operating costs are divided by 40 acres to convert them into per acre figures. The operating costs for each system component are summarized in Table 3.7 and the total system operating cost for each alternative WTMS is included in Table 3.8. 80 TABLE 3.7: Variable Costs Associated with Water Management Systems Description, specifications, u Component and bases for cost Cost calculations Repairs/Maintenance Irrigation riser 5 control structure Fixed percentage of average 1%/yr annual depreciation Well None assumed II F Pumps, power units Fixed t of average annual 5%/yr depreciation Electricity SI System Well 7.5 horsepower pump $2.25/in Surface source 3.5 horsepower pump $1.501in Labor Subirrigation Based on 1/4 h/day from May system 15 to Aug 15 to check water level in observation wells, adjust riser level, etc. at $6.00/hr, 40 acres $3.40/ac TABLE 3.8: System Repair and Maintenance Costs Annual System Annual System Operating Operating Costs System Costs (per acre) DR20 $ 0.00 $ 0.00 DR30 S 0.00 $ 0.00 DR60 $ 0.00 S 0.00 SIZOS $ 34.00 S 0.85 81308 $ 34.00 s 0.85 81608 5 34.00 $ 0.85 SIZOW $ 40.00 $ 1.00 SIBOW 5 40.00 S 1.00 SIGOW 5 40.00 $ 1.00 81 Enterprise budgets developed by the MSU Department of Agicultural Economics were consulted for production cost data (Nott et al., 1992) and adjusted based on Huron County specific production cost data (LeCureux and Booms 1990a-d; LeCureux, 1991a,b). The values used in the analysis are summarized in Table 3.9. TABLE 3.9: Irrigated and Nonirrigated Corn Production Costs Expense Seed Nitrogen 28.60 22.10 % Phosphate 15.20 7.60 Potash 20.90 15.40 Insecticide 12.56 12.65 Equipment Repairs 18.00 18.00 Building Repairs 3.00 3.00 Total: It should be noted that production costs do not include depreciation, insurance, rent, interest, or labor charges. Harvesting costs, which vary depending on the number of bushels harvested, are calculated separately and include costs for drying fuel, gasoline, fuel, oil, trucking, and marketing. These costs were summarized in a per bushel harvesting cost variable (PBC = $0.57) and multiplied by the number of bushels harvested each year under the various WTMSS to give variable per bushel production costs (VPBC). ' SI = Subirrigated Corn with 180 bu/acre yield goal. 9 N1 = Nonirrigated Corn with 140 bu/acre yield goal. 82 3.3.2. Net Present Value Analysis 3.3.2.1. Theory of Profit Maximization The base net present value (NPV) analysis looks at the investment decision in risk-free terms. The base weather-yield sequence is used to derive NPV, which is a measure of the relative profitability of the different WTMS options. It is assumed that decision makers’ preferences for NPV can be embodied in a utility function U(NPV) and that under the conditions of certainty depicted in this first stage of the economic analysis, the decision maker seeks to maximize utility by maximizing NPV. The decision choice facing the decision maker is simply to choose the investment with the highest NPV. In the second part of the analysis, the risk analysis, the assumption of certainty is dropped and the reality of risk is introduced. Under conditions of risk, the object is to maximize expected utility. In the results chapter, a comparison of the outcomes of the two different approaches to analyzing the investment decision is made. 3.3.2.2. Procedures The procedure used in the NPV analysis is adapted from Boggess and Amerling (1983). Equation 3 is the formula used for NPV. Each of the variables is described below and the base values used in the analysis are summarized in Table 3.10. s .. (1) NPV = -C.. + 21",- (WC,+VPC+wacp-q-«zvgwmwmcM.__(1”D .2 __D1 r-I (1+k)‘ 1.1 (1 +k)‘ 83 where Co = initial investment cost, P = price of corn ($240/bu), Yt = yield in year t, IVC, = irrigation variable cost in year t, VPC -= corn production cost, VPBC, = per bushel harvesting cost in year t, D, = tax-related depreciation charged against the irrigation system in year t, i = interest rate charged on operating capital (10.5%), I = investor’s marginal income tax rate (28%), k = investor’s after-tax minimum acceptable real rate of return (4%), n = life of the system in years (30). Table 3.10: Base Parameter Values IParameter Base Value “ P $2.40/bu i $0.105 I $0.28 k $0.04 PBCt $0.57/bu n 30 yrs ” The first term of Equation 3 is the initial cash outlay. In this analysis, it is assumed that the farmer pays all of the initial investment costs out of equity. Discussions with the Huron County extension agent, James LeCureux, revealed that most farmers pay for their subirrigation systems out of harvest earnings. This assumption geatly simplifies the analysis because issues such as the farmer’s leverage ratio, loan payback periods, and long-term interest rates can be set aside. However, including the discount factor in the analysis accommodates the fact that the cash outlay has an Opportunity cost associated with it that is captured despite the simplifying assumption of a cash purchase of the system. 84 The second term is the discounted sum of after-tax income. Depreciation, which is a deductible expense, is subtracted from goss income. The term (l-L)/(1+ke)‘ is the tax and discount adjustment factor. Because NPV is based on after-tax cash flows rather than net income flows and depreciation is not a cash expense, the income stream must be adjusted by adding depreciation expenses back into the analysis to prevent double counting them in the cash outflows. The final term of Equation 3 reflects this adjustment (Boggess and Amerling, 1983). All net cash flows are expressed in constant 1992 dollars. The discount rate is also a real rate of return. A real interest charge on operating capital is included in the calculations. This includes interest on variable production costs, variable irrigation costs, and variable per bushel harvesting costs. Because different components of the WTMS have varying life expectancies, the NPV formulation in the Basic computer progam is actually a variant of the above formulation. The documented source code in Appendix A provides full details of how the NPV calculations accommodated this complication. The output of the first stage of the economic analysis is the NPV of the alternative WTMS under the base weather sequence. The base NPV results provide a risk-neutral ordering of the systems. 3.3.3. Monte Carlo Simulation Monte Carlo simulation is used to address the importance of the sequence of weather on the profitability of water table management investments in humid climates. Monte Carlo simulation involves using random numbers in sampling from a particular 85 distribution (Rubenstein, 1981). In this analysis, the process simulation model DRAINMOD provides a 33-year sequence of yields and irrigation application amounts derived from running the simulation for 33 years of climatological data. This 33-year sequence is an historical empirical distribution. By randomly drawing 30-year sequences with replacement from this historic distribution, we can capture the significance of the sequencing of weather on the NPV of the investment. The sequence of Monte Carlo simulation can be depicted as follows: 1. DRAINMOD is used to generate yields (and irrigation application amounts for subirrigated treatments) for 33 years of daily historical weather data at a drain spacing of 60-ft. 2. A particular yield response (and irrigation application amount for subirrigated treatments) is selected by randomly drawing an observation from the uniform distribution of simulated results. 3. After-tax cash flow for the year is computed using the selected yield and irrigation application amount in tandem with system-specific costs. 4. Steps 2 and 3 are repeated 30 times. At the end of 30 simulated years, the net present value of the water table management investment is computed. 5. Steps 2, 3, and 4 are repeated 100 times to generate the probability distribution of the net present value of the system. 6. Steps 1-5 are repeated for each combination of drain spacing, water supply source, and water table management option. (Modified from Boggess, et al., 1983, p. 87) 86 The output of the Monte Carlo simulation for the alternative water table management investment options provides us with the probability distributions that are used in the expected value variance and stochastic dominance analyses. 3.3.4. Risk Analysis 3.3.4.1. Risk Efficiency Models Much of decision theory under uncertainty is based upon the expected utility model (EUM) which relies an expected utility maximization as its choice criterion. The utility function embodies information about the decision maker’s preferences. It relates the possible outcomes of a choice to a single-valued index of desirability (King and Robison, 1984). It is thus an exact representation of preferences and therefore has much intellectual appeal. The model has limited practical application, however, because of the difficulties of estimating utility functions. One way of getting around this problem is to use an efficiency criterion to order choices. After specifying certain restricting assumptions about a decision maker’s preferences, an efficiency criterion divides the decision alternatives into an efficient set and an inefficient set. The efficient set of alternatives contains the preferred choice of any member of the class of decision makers for whom the criterion applies (King and Robison, 1981a). The benefit of using an efficiency criterion is that by keeping the restrictions on the utility function rather general, only limited information about preferences is needed and the efficient set conforms to the Utility functions of a broad class of decision makers. A disadvantage, however, is that if the restrictions are kept too general, not many choices will be eliminated as inefficient. As more restrictions are put on the utility 87 function, this narrows the relevant class of decision makers to whom the efficient set applies and increases the discriminating power of the efficiency criteria. But more restrictions imply more knowledge of preferences. The tradeoff of generality versus discriminating power of the efficiency criteria confronts every analyst who tries to decide on the appropriate efficiency criteria. The choice in the end depends on the specific problem to be addressed and ultimately on the amount of information available about the preference function(s) of the decision maker(s). There are several widely used risk efficiency criteria. The following four will be described below: (1) first degee stochastic dominance; (2) second degee stochastic dominance; (3) expected value-variance efficiency; (4) stochastic dominance with respect to a function, also known as generalized stochastic dominance. Stochastic Dominance Stochastic dominance of one distribution over another is determined by comparing cumulative distribution functions (CDF) of alternative choices. The CDFS are the integals over the probability density functions (PDFs) of the random variable, x. For example, if the PDF is f(x) or Fo(x)‘°, the CDF is defined as follows: R PM) = 1 f(x) dx (2) ‘° Each successive integation of a PDF is denoted by higher subscripts. For example if Fo(x) = f(x) denotes the PDF, F,(x) is the integal of Fo(x), F,(x) is the integal of F1 (x), etc. 88 In this formulation, it is assumed that x lies within the interval [a, b] and varies continuously over this range so that the PDFs are continuous (Anderson, 1974b). Figures 3.5. and 3.6. show gaphically the PDF and the CDF. Probablllty Density Functlon F0 f(x) x Figure 3.5. Cumulative Distrlbution Function 1.0 F1 0 x Figure 3.6. 89 First Degree Stochastic Dominance (FSD) The concept of stochastic dominance rests on broad assumptions concerning the preferences of the decision maker. First degee stochastic dominance (FSD) is based on the assumption that more is preferred to less, i.e. that U,(x)ll > 0. If comparison of two CDFs shows that one is clearly less than the other, i.e., that F1(R) < = Gl(R) for all R in [a, b] with strict inequality for at least one value of R, the distribution f(x) is said to dominate g(x) by first-degee stochastic dominance. Graphically, this means that the CDF of the dominant distribution can never lie above the CDF of the dominated distribution (Figure 3.7.). FSD implies that E(U,) > E(Us), which, in turn, means that f(x) is preferred to g(x). Thus, without knowing anything more about the utility function other than that U1(x) > 0, we can say that decision makers with such a utility function will prefer an FSD distribution (Anderson, 1974b). If one distribution does not dominate the other by FSD, the two alternatives are both considered efficient by the FSD criterion. Following this logic, a series of pairwise comparisons is made of the various alternatives. The comparison can be made gaphically, as described above, where any CDF which lies entirely above a second is considered dominated by the second. By eliminating all alternatives that are dominated, an efficient set of choices is thus determined for the finite set of alternatives under consideration (King and Robison, 1981a). In order to further reduce the number of alternatives, second degee stochastic dominance criteria can be applied to the alternatives in the efficient set. " U,(x) is the first derivative of the utility function, U(x). Higher order derivatives are shown using successively larger subscripts. 90 Second Degree Stochastic Dominance (SSD) Second degee stochastic dominance (SSD) criteria are used in cases where one distribution does not clearly dominate the other by FSD, i.e., where CDFs intersect (Figure 3.7.). SSD criteria are based on the further assumption of diminishing marginal utility function -- that successive amounts of x have diminishing value to the decision maker -- U2(x) S 0. Both assumptions taken together, U,(x) > 0 and U2(x) S 0, imply a concave utility function, U(x). Individuals with a concave utility function are said to be risk averse. The ordering rule for SSD is that the distribution h(x) dominates g(x) by SSD if, and only if, iH,(R)dRs}G,(R)dR (3) for all possible R in the interval with strict inequality for at least one value of R (Anderson, 1974b; Hadar and Russell, 1969). Graphically, this implies that h(x) dominates g(x) by SSD if area A is not less than area B (Figure 3.7.) or if the accumulated area under H1(R) is always less than or equal to the accumulated area under G,(R). Application of the SSD criterion to a set of alternatives proceeds in the same manner as for FSD. Pairwise comparisons are made of alternatives. The differences between the two cumulative probability distributions are summed cumulatively in ascending order. If the cumulative sum ever changes sign, the pair cannot be ordered by SSD. If the sign never changes, the alternative with the lower bound of its CDF initially to the right of the other is the dominant alternative. 91 Cumulative Distribution Functions F50 and $30 1.0 cor o x Figure 3.7. Expected ValueVariance (EV) Efficiency Expected value-variance (EV) efficiency is also a widely used efficiency criterion. It assumes (1) risk aversion on the part of the decision maker and either (2a) that the outcome distributions are normal, or (2b) that the decision maker has a quadratic utility function. When either 2a or 2b holds, ”all relevant information concerning distributions of alternative choices is conveyed by means and variances" (King and Robison, 1984, p.73). If the distributions are normal, EV efficiency criterion is just a special case of SSD (King and Robison, 1981a). The ordering rule for EV efficiency is as follows: f(x) dominates g(x) if { E[f(x)] > = E[g(x)] and Var[f(x)] < = Var[g(x)] } and if at least one of the inequalities is strict. The EV efficiency criterion has several advantages over FSD and SSD: (i) Means and variances are easily derived. (ii) Most analysts are familiar with the approach. (iii) It is easily incorporated into quadratic progamming. 92 On the other hand, the EV efficiency criterion shares some of the same disadvantages of FSD and SSD. The assumption of risk aversion means that for some decision makers who are not everywhere risk averse, a preferred choice may be eliminated from the efficient set. In addition, EV efficiency often does not effectively reduce the choice set. EV efficiency tends to be inferior to FSD and SSD in at least one respect. The normality assumption of the EV criteria is often violated in agicultural settings. Empirical evidence indicates that agicultural yields and other measures of returns have negative skewness (Day, 1965). In Chapter 4, probability distributions of the expected NPV of the various WTMS are shown gaphically and it will be seen that the distributions do show negative skewness. According to King and Robison (1984), if the normality assumption is violated, the EV efficient set can differ from the SSD efficient set. For this reason, both EV efficiency criteria and stochastic dominance criteria are applied to the economic results to determine if they identify the same efficient set. Stochastic Dominance With Respect to a Function (SDRF) The efficiency criteria discussed so far all suffer from two deficiencies. None will reliably reduce a large number of choices to a small efficient set that the decision maker can order directly and each relies on the assumption of risk aversion (King and Robison, 1984; Harris and Mapp, 1986). Stochastic dominance with respect to a function (SDRF) overcomes these limitations but requires more knowledge of the utility function. SDRF imposes linnited restrictions on the utility function (King and Robison, 1981b; Meyer, 1977). It orders uncertain choices for decision makers whose absolute risk aversion 93 functions are within specified lower and upper bounds of the absolute risk aversion function: we = -U.(x) / U.(x). where U(x) is a van Neumann-Morgenstern utility function. Ul(x) is assumed to be positive (more of the good is preferred to less), so a positive value of R.(x) implies a negative value of U2(x), which in turn implies a concave utility function and hence risk aversion on the part of the decision maker. .A negative value of R,(x) implies risk loving on the part of the decision maker. The solution procedure for SDRF relies an optimal control techniques. The object is to identify a utility function Uo(x) which minimizes l f [G(x) — F(x)] U,(x) dx (4) 0 subject to the constraint that R,(x) lies everywhere between lower and upper bounds r,(x) and r2(x), i.e., where r,(x) < = R.(x) < =r2(x). If the minimized outcome of Equation 4 is positive, the CDF F(x) is preferred to G(x) by all individuals whose risk aversion function lies within the specified bounds (King and Robison, 1981a). If it is zero, the two alternatives cannot be ordered. If it is negative, the positions of F(x) and G(x) in Equation 4 must be reversed and the equation again minimized subject to the same constraint to determine if G(x) is preferred to F(x). This ”preference interval” approach (Cochran and Raskin, 1988) requires that the class of utility functions be explicitly defined, but it still permits avoidance of the necessity of representing preferences exactly. 94 FSD and SSD can be related to SDRF by specifying the limits on r1(x) and r2(x) as follows: For FSD, g(x) = - infinity and r2(x) = + infinity For SSD, g(x) = 0 and r2(x) = + infinity. 3.3.4.2. Application of Stochastic Dominance Criteria to Water Table Management Investment Decisions In this analysis, 30-year NPV from a 40-acre WTMS investment is the random variable of interest. First and second degee stochastic dominance criteria and stochastic dominance with respect to a function are used to identify the risk efficient strategies. In addition, EV analysis is also performed in order to compare the efficient set identified by the two methods. Implementation of the SD rules involves pairwise comparison of distributions to identify and eliminate distributions that are dominated. The practicalities of this approach are discussed below. Steps of Stochastic Analysis 1. For each distribution, rank all the values taken by x (NPV) in ascending order. 2. For each distribution, attribute fix) to each xi. (For 100 NPVS, each NPV has a probability of .01 associated with it.) 3. Graph the CDF of the NPVs of each WTMS. 4. Make pairwise comparisons among distributions by applying F SD criteria to determine if one distribution dominates the other by FSD. 5. If this is not the case, apply the SSD criterion. 6. If one distribution does not dominate the other by SSD, apply the SDRF criterion. 95 Determination of FSD is done gaphically in this analysis. Due to limitations in gaphing capability, CDFS are not displayed in the traditional fashion (Figure 3.8.). Rather than having the cumulative probability on the y-axis and the expected NPV on the x-axis, the axes had to be reversed in order to display more than one CDF on each gaph. Under the circumstances, dominant distributions lie above dominated distributions, i.e., f(x) dominates h(x). Any distributions that cross cannot be ordered by FSD and must be evaluated using SSD criteria, i.e., h(x) and g(x). Cumulatlve DIStrIbutlons with the X-Axis and Y-Axis Reversed 1800 1700* % 16004 > E 1500‘ 3 1 ' 2 1400‘i n. 172-7 g 1300 ~ .. 120011 1100 'Vl'!I'VVIIlYIUVTIJYJlITII"!"I"V'V'Y'VITIITIV'T'II'lll‘iuuVllllTIT"IIII‘IIT‘[I'V'VVI'V'VIVITI 0.01 0.11 0.21 0.31 0.41 0.51 0.61 0.71 0.81 0.91 Cumulative Probability —o-— H“) + F(x) -6— G(x) Figure 3.8. FSD eliminates from the FSD efficient set any distributions that lie entirely below a given distribution. Determination of SSD is done by numerically integating the cumulative difference between distributions which intersect and therefore cannot be ordered by FSD. If the cumulative sum of the difference between two such distributions 96 does not change sign at any point, the distribution that begins above but subsequently crosses and remains below the other is said to dominate the one below it by SSD. A computer progam for ordering distributions using SDRF criteria, GSD version 3.0 (Cochran and Raskin, 1988), was used to evaluate distributions which were not dominated by either first or second degee stochastic dominance. 3.3.4.3. Application of Expected Net Present Value Criteria to Water Table Management System Investment Decisions Expected NPV and standard deviations of NPV are compared across systems. In any case where the ENPV of one WTMS is geater than or equal to that of the other and the WTMS also has a standard deviation lower than or equal to the other, with at least one of the inequalities being strict, it is said to dominate the other by the EV criterion. 3.4. Sensitivity Analysis The results of the economic analysis depend on the values of parameters chosen in the base scenario. In order to test the sensitivity of the results to the particular values chosen, sensitivity analyses are performed on the following parameters: a) yield, b) marginal tax rate, c) product price, d) discount rate, e) initial cost of the WTMS. 97 The sensitivity analysis consists of substituting different values for each of the above parameters and determining whether the basic stochastic dominance relationships among WTMSS changes significantly. In some instances, comparisons of changes in the ENPV and SDNPV under the base scenario and the adjusted scenario are made, but the emphasis is generally on noting how changes in key parameters affect the stochastic dominance ordering of the investment options. CHAPTER 4 RESULTS 4.1. Simulation Results Simulations were conducted for 33 years (1958-1990) using climatological data from Flint, Michigan, for alternative drain spacings of 20, 30, and 60 feet. Both subirrigation and conventional drainage were simulated for each drain spacing and complete simulation results for each system are presented in Appendix H. Tables 4.1 and 4.2, which show the results for conventional drainage and subirrigation at 30-ft tile spacings, are presented in the text below for easy reference. Values in the Predicted Yield column are the overall relative yield multiplied by the potential yield, which is 180 bu/acre for subirrigation and 140 bu/ acre for drainage only. 4.1.1. Drainage Only Results Referring to Table 4.1 and Appendices H1-H3, the simulation results show that at the 20- and 30-ft tile spacing for drainage only, excess water stress does not result in yield reductions nor does wet stress ever result in a delay in planting at these spacings. 'This result is a function of the narrow drain spacing which provides excellent drainage. As the tile spacing increases to 60 feet some slight excess water stress occurs during 3 of the 33 years of the simulation. Although simulation results with tile spacings geater than 60 feet are not included in the appendix, simulations were run at 70-, 80-, 90-, and 98 99 100-ft tile spacings and excess water stress became more severe at successively wider tile spacings. The most significant yield reductions for the drainage only scenario at 20-, 30-, and 60-ft tile spacings occur in all cases as a result of drought stress, which causes yield reductions geater than 10% in 8 of the 33 years at each tile spacing. As discussed in the previous chapter, inspection of rainfall data by an agometeorologist at the Michigan Department of Agiculture Climatology Department, Dr. Jeffrey Andresen, confirms that the indicated years were in fact relatively dry years based on the daily weather records from the Flint reporting station. The simulation results show a predominance of 100% yields. In fact, in just over half of the years, the predicted relative yield is 100%. Under actual field conditions, one would assume that the yields would show much more year-to-year variation. However, no correction is made for this phenomenon. The rationale for not making a correction is that under field conditions, in a good year, yields often exceed the planned yield goal (as evidenced in validation Figures 3.3 and 3.4). Yet DRAINMOD does not predict yields geater than 100% of the assumed potential yield, so to some extent the large number of 100% yields compensates for this deficiency. In comparing the simulation results for the conventional drainage case at the three tile spacings, 20-ft, 30-ft, and 60-ft, there is a general tendency for the predicted relative yields to increase as the drain spacings increase. This occurs in all years except 1969 where, at the 60-ft drain spacing, yields fall slightly because of excess water stress. This result is sigiificant, showing that on a Kilmanagh soil where only drainage is practiced, reducing the tile spacing below 60 feet can occasionally result in yield losses from over drainage. Later, in the economic analysis section, this fact results in the clear 100 domination of the 60-ft tile spacing over the narrower drain spacings for the drainage only systems. TABLE 4.1: DRAINMOD Yield Output for Drainage Only at 30-ft Tile Spacings Water Stress Relative Yields Predicted Plant Plant —— Yield Year Excess Def Date Delay Excess Def Delay Overall(bu/acre) 1958 0 O 125 O 100 100 100 100 140.0 1959 O 22.2 125 0 100 76.7 100 76.7 107.4 1960 O 14.8 125 0 100 84.5 100 84.5 118.3 1961 0 2.9 125 0 100 97.0 100 97.0 135.8 1962 0 0 125 O 100 100 100 100 140.0 1963 O 44.8 125 O 100 52.9 100 52.9 74.1 1964 0 0 125 O 100 100 100 100 140.0 1965 0 28.5 125 O 100 70.1 100 70.1 98.1 1966 0 5.7 125 0 100 94.0 100 94.0 131.6 1967 O 0.4 125 O 100 99.6 100 99.6 139.4 1968 0 0 125 0 100 100 100 100 140.0 1969 0 O 125 O 100 100 100 100 140.0 1970 O O 125 O 100 100 100 100 140.0 1971 O 0 125 0 100 100 100 100 140.0 1972 O O 125 O 100 100 100 100 . 140.0 1973 0 O 125 0 100 100 100 100 140.0 1974 2.6 23.7 125 O 98.5 75.1 100 74.0 103.6 1975 O 0 125 0 100 100 100 100 140.0 1976 0 0.4 125 O 100 99.6 100 99.6 139.4 1977 O 0 125 O 100 100 100 100 140.0 1978 O 37.6 125 0 100 60.5 100 60.5 84.7 1979 0 O 125 O 100 100 100 100 140.0 1980 0 0 125 0 100 100 100 100 140.0 1981 O 0.2 125 O 100 99.8 100 99.8 139.7 1982 O 0 125 0 100 100 100 100 140.0 1983 0 1.2 125 O 100 98.8 100 98.8 138.3 1984 O 12.3 125 0 100 87.1 100 87.1 121.9 1985 0 0 125 0 100 100 100 100 140.0 1986 0 0 125 0 100 100 100 100 140.0 1987 0 33.1 125 0 100 65.2 100 65.2 91.3 1988 O 38.2 125 0 100 59. 100 59.9 83.9 1989 O O 125 0 100 100 100 100 140.0 1990 O 0 125 0 100 100 100 100 140.0 Average 0 8.1 125 0 100 91.5 100 91.5 128.1 4.1.2. Subirrigation Results Referring to Table 4.2 and Appendices H4-H6, the results for the subirrigated simulation runs show much less variability in yields. This can be expected. Irrigation is practiced to reduce yield variability. The difference between the drainage only case and 101 the subirrigation case is that the yield losses under subirrigation at the narrower drain spacings result from excess water stress rather than drought stress. Excess water stress results under subirrigation because the water table is being held at a high level and when a rainfall event occurs under these circumstances, water invades the top 30 cm of the soil causing excess water stress and yield reductions. DRAINMOD captures this effect very well. By varying the weir elevation in the control structure in the field, and analogously the weir setting in DRAINMOD, these yield losses due to excess water stress can be eliminated. However, a conscious decision was made to leave the weir setting in DRAINMOD at a level (55 cm) that resulted in some excess water stress because this more closely represents reality. Farmers do not have total control of the water table depth on a continual basis. Having an optimal weir level setting in DRAINMOD would imply superior management which is not the case in field situations. Consequently, the simulation results show wet stress under subirrigation dirnirnishing as the drain spacing increases. Conversely, at the 60-ft spacing, drought stress begins to cause yield reductions. This reflects actual experience in Huron County. At a wider drain spacing, water does not move laterally through the soil far enough to reach the middle portion of the field between two tiles. Inspection of the irrigation volumes (Appendices Il-I6) shows that in moving from 20- to 30- to 60-ft tile spacings, successively smaller volumes of water can be pumped out through the tiles. At the 60-ft tile spacing water becomes limiting enough that drought stresses result. A gaph of the predicted yields converted into bushels per acre is presented in Figure 4.1 for the drainage only system and the subirrigation system at 30-ft tile spacings. This gaph clearly shows that because of the difference in the assumed potential 102 maximum yields between the two systems (180 bu /acre for subirrigation versus 140 bu/acre for drainage only), the subirrigated system consistently has higher yields than the drainage only system. The sensitivity of the economic analysis to these differences in assumed potential yields is tested below in the economic sensitivity analysis section. TABLE 4.2: DRAINMOD Yield Output for Subirrigation at 30-ft Tile Spacings Water Stress Relative Yields Predicted Plant Plant Yield Year Excess Def Date Delay Excess Def Delay Overa11(bu/acre) 1958 0 0 125 0 100 100 100 100 180.0 1959 5.9 0 125 0 96.0 100 100 96.0 172.8 1960 0 0 125 0 100 100 100 100 180.0 1961 0 0 125 0 100 100 100 100 179.5 1962 0.5 0 125 0 99.7 100 100 99.7 180.0 1963 0 0 125 0 100 100 100 100 180.0 1964 0 0 125 0 100 100 100 100 180.0 1965 0 0 125 0 100 100 100 100 180.0 1966 0 0 125 0 100 100 100 100 180.0 1967 1.7 0.1 125 0 98.8 99.9 100 98.8 177.8 1968 11.9 0 125 0 91.9 100 100 91.9 165.4 1969 8.3 0 125 0 94.3 100 100 94.3 169.7 1970 7.3 0 125 0 95.0 100 100 95.0 171.0 1971 0 0 125 0 100 100 100 100 180.0 1972 10.2 0 125 0 93.1 100 100 93.1 167.6 1973 0 0 125 0 100 100 100 100 180.0 1974 4.9 0 125 0 96.7 100 100 96.7 174.1 1975 0.2 0 125 0 99.9 100 100 99.9 179.8 1976 2.6 0 125 0 98.2 100 100 98.2 176.8 1977 0 0 125 0 100 100 100 100 180.0 1978 0 0 125 0 100 100 100 100 180.0 1979 0.7 0 125 0 99.5 100 100 99.5 179.1 1980 3.4 0 125 0 97.7 100 100 97.7 175.9 1981 0 0 125 0 100 100 100 100 180.0 1982 0 0 125 0 100 100 100 100 180. 1983 0.7 0 125 0 99.6 100 100 99.6 179.3 1984 0 0 125 0 100 100 100 100 180. 1985 0 0 125 0 100 100 100 100 180.0 1986 0 0 125 0 100 100 100 100 180.0 1987 0 0 125 0 100 100 100 100 180.0 1988 0 0 125 0 100 100 100 100 180.0 1989 0.4 0 125 0 99.7 100 100 99.7 179.5 1990 0 0 125 0 100 100 100 100 180.0 Average 1.8 0 125 0 98.8 100 100 98.8 177.8 103 DRAINMOD Predicted Yields for Drainage Only and Subirrigation 180- v "w v V v w 100- Yield in bu/acre 3'3 0 80‘ ‘0 I I j—I I—fiI I I I I I I I I I If I I I I I I I I I T T I I I I 1959 199011192 11194 1999111991970 1972 197419791979 19901992 199419911 1999 1990 Time +DR Y|d+S|Yld Figure 4.1 4.2. Results of the Economic Analysis The economic analysis proceeded in three stages: an analysis of NPV using the base weather sequence, an analysis of expected NPV, and a risk analysis using the probability distribution of NPVs which were derived using Monte Carlo simulation techniques. The results of all three stages are discussed below. 4.2.1. NPV Analysis - Base Weather Sequence As described in the methodology chapter, the NPV for each WTMS was calculated using the following formulation of the NPV equation. 104 NPV ' ‘Co + 2.31”;- (IVC,+VPCWPBC)-D,-1'(IVC,+VPC+mung]._(l ’0 .2 __D' n1 (1+k)‘ r-l (1+k)‘ The results of the economic analysis of NPV under the base weather sequence (1958-1987) over the 30-yr planning horizon are shown in Table 4.3, which includes a ”Grass Margins” column showing the difference in the NPV of the various WTMS over the existing system, DR60. In addition, Table 4.4 shows the cumulative NPV over the entire 30-year planning horizon for each system. These yearly figures show how the final NPV figure is derived. They were printed out after each loop of the NPV calculation. TABLE 4.3: NPV and Gross Margins - Base Weather Sequence (1958-87) L Annualized Gross Net Net Margin Annualized Investment Present Present Over Gross Option Value Value DR60 Margins DR20 $ 954 $ -$ 446 DR30 $1,164 5 -$ 236 DR60 $1,400 3 ------ 81208 $1,341 5 -$ 59 81308 $1,598 5 $ 198 51608 $1,761 5 s 367 sxzow $1,019 5 -$ 381 SI30N $ -$ 124 S $44 A basic interpretation of the NPV figures can be stated as follows: Under the base weather sequence, a farmer who has an existing drainage system in place and who is gowing continuous corn can expect the present value of his/ her net income stream over a 30-year planning horizon to be $1,400 per acre. Dividing $1,400 by the value 105 17.292 from a Present Value of Annuity Table (Harsh et al., 1981) for 4% real interest and a 30cyear planning horizon, this figure can be annualized and interpreted as meaning the farmer would be indifferent between receiving 581 in annual per acre net returns over the 30-year period and receiving $1,400/ acre today. In comparing the $1,400 figure to the NPV for the other WTMS options, it is clear that WTMS options DR20, DR30, 81208, SIZOW, and S130W are not profitable while WTMS options SI30S, $1608, and SI60W offer the farmer an opportunity to earn more per acre than he/she can expect to earn with the existing WTMS. These results indicate that under a no risk situation, if the farmer chooses only to maximize NPV, only three of the six subirrigation WTMS options are more profitable than the existing drainage only WTMS. Annualized goss margins, which are also included in Table 4.3, give a global view of what the level of annual returns over the returns from the existing system might look like. 81608 has the largest annualized goss margin of $21/acre. This figure could be used as a basis to determine a willingness to pay measure if an irrigation district were to be formed. However the $21/acre figure would have to be considered an upper bound of what farmers would be willing to pay since in the calculation of production costs for all WTMSS, labor costs and fixed costs such as insurance, land rent, and any depreciation and interest costs not associated with the WTMS investment itself were not included. The cumulative NPV figures in Table 4.4 give a better idea of the ”payoff period" of each investment alternative under the base weather sequence. Negative figures in Table 4.4 indicate that the initial cost of the investment has not yet been recuperated. Generally, in a goss margins type analysis where results are reported in terms of goss margins over the existing system, the payback period would be considered the period 106 where the NPV stream is negative and then just becomes positive. In this analysis, although results in Table 4.4 are not reported in terms of goss margins over the existing system, the point at which the NPV stream becomes positive is still referred to as the payback period. A separate distinction is made between the payback period, as used in this context, and the point where the investment under consideration yields a NPV that surpasses that of the existing system during the investment planning horizon. TABLE 4.4: NPV of WTMS Options over the Planning Horizon (1958-87) YEAR DR20 DR30 DR60 81205 SIBOS SI6OS SIZOW SIBOW SIGOW 1958 -426 -173 91 -802 -550 -303 -1190 -938 -690 1959 -369 -119 150 -680 -427 -175 -1060 -808 -556 1960 -302 -55 212 -549 -301 -53 -922 -675 -427 1961 -217 26 290 -423 -180 65 -790 -547 -302 1962 -131 108 368 -302 -63 177 -663 -424 -184 1963 -115 121 381 -186 49 261 -541 -306 -94 1964 -35 197 453 -76 157 365 -425 -192 16 1965 2 231 486 29 257 457 -315 -86 114 1966 67 294 547 129 354 546 -210 15 207 1967 138 361 610 222 445 635 -112 111 301 1968 206 425 672 288 522 718 -42 192 388 1969 271 488 727 366 600 795 40 274 469 1970 334 548 784 444 676 875 123 354 553 1971 394 606 839 526 755 952 209 438 634 1972 452 661 891 595 823 1025 281 509 712 1973 503 712 942 649 877 1080 325 553 756 1974 528 737 969 715 941 1136 392 617 812 1975 575 783 1016 777 1005 1200 454 682 877 1976 619 828 1059 824 1066 1261 501 743 938 1977 663 872 1102 884 1126 1321 561 803 998 1978 673 882 1115 942 1184 1373 619 861 1051 1979 713 922 1155 989 1239 1429 667 916 1106 1980 752 961 1193 1034 1290 1480 711 968 1158 1981 788 998 1231 1083 1339 1530 761 1017 1207 1982 824 1033 1266 1131 1387 1577 808 1065 1255 1983 857 1067 1300 1175 1432 1623 853 1110 1301 1984 882 1092 1327 1219 1476 1667 897 1154 1345 1985 914 1123 1359 1261 1519 1709 939 1196 1387 1986 944 1154 1389 1302 1559 1750 979 1237 1428 1987 954 1164 1400 1341 1598 1767 1019 1276 1444 NPV: 954 1064 1400 1341 1598 1767 1019 1276 1444 107 The cumulative NPV results for each goup of innvestments, DR20, DR30, and DR60 (Drainage Only), 81208, 81308, and SI60S (Subirrigation with a Surface Water Source) and SIZOW, SIBOW, and SI60W (Subirrigation with a Well Water Source), are discussed separately below. In each case, the existing WTMS (DR60) is also compared to the subirrigation options irn each goup to give a better idea of how the existing system compares with the subirrigation WTMS options for each water source. The cumulative NPVs for each goup of WTMS are presented gaphically in Figures 4.2 - 4.4. Figures 4.3 and 4.4 show DR60 compared with the subirrigation WTMSS in each goup. Of the drainage only WTMS (Figure 4.2), the unmodified existing system (DR60) provides the highest NPV. Because no initial investment is made, returns are positive over the entire planning horizon, whereas for DR20 and DR30, returns do not become positive until years 8 (1965) and 4 (1961), respectively. The simulation yield results already gave us a premonition of this outcome. Improving drainage by decreasing the drain spacing below the existing 60-ft spacing for a Kilmanagh soil is not an economically viable decision for farmers. Because of the clear dominance of DR60 over the other two drainage only WTMSS, in the subsequent comparisons with subirrigation WTMSS, DR60 is the only drainage only option considered. For the surface water subirrigation options, S1605 has the highest NPV of the three (Figure 4.3). Returns become positive in year four of this investment and the NPV over the 30-yr planning horizon is $1,767. The payback periods for the other two surface water subirrigation WTMSs are 8 years for 8120s and 6 years for $1308. The fact that SI60S is economically more profitable than 31308 is noteworthy. The yield results for the two systems indicated that S1308 outperformed SI60S because at 108 the 60-ft tile spacing, water could not be pumped adequately to the center of the field between two tiles. The economic results indicate, however, that the yield benefit of the narrower tile spacing does not compensate for the extra cost of reducing the tile spacing to 30 feet. Cumulative NPV for Draina e Only WTMS Base Weather Sequence (19 8-87)y 1500 1000-1 > 2 O s): 900- g E o o «7"! 19'99'19'90'19'92 1994 19'99 '19'99 '19'70 '19'72 '1974 19"79'19'79'19'90'19'92'19'94'19'99 Time + DR20 —"" DR30 + DR60 Figure 4.2 In comparing DR60, the existing system, with the the three surface water subirrigation systems, it is already clear just from looking at the NPVs for these systems that DR60 is more profitable than 81208 and less profitable than 81308 and 81608. What is interesting to note, however, is how long into the planning horizon DR60 remains dominant over 81308 and 81608. The NPV of 81608 does not overtake that of DR60 109 until year 10 of the planning horizon (1967) and the NPV of 81308 overtakes that of DR60 in year 20 (1977). The extra information provided by comparing NPV streams of the different investment Options over the planning horizon is a matter of interest to decision makers. For example, even given the fact that 81308 eventually provides a higher NPV than DR60, many farmers would not be willing to wait 20 years for the extra benefit from their investment to kick in. Cumulative NPV for DR60 and Surface Water Subirrigation WTMS - Base Weather 2000 1500- 1000‘ 500‘ Cumulative NPV I I I I I I fI T Ifi I I I I I I I I I I T I I I I I I I j 1999 1990 1992 1994 1999 1999 1970 1972 1974 1979 1979 1999 1992 1994 1999 Time + DR60 + 51205 + $1303 ‘9‘ $1605 Figure 4.3 The economic results for the WTMS under subirrigation with a well water source (shown in Figure 4.4) mimic those for a surface water source except that the NPV 110 stream does not become positive until later and is lower in each case over the 30-year planning horizon because of the higher initial investment cost associated with installing a well. In this case, DR60 has a higher final NPV than either snow or SI30W, and although SI60W has a higher final NPV than DR60, it only overtakes it in year 27 of the planning horizon. Cumulative NPV for DR6 O and Well Water Subirrigation WTMS - Base Weather 1500 __—..- 1000- r 5 ="‘""' a 900- ' 5 " " Z 5 ‘ 0 a '4 .2 0 :6 .. '1 3 a '4 g 4004 ,4 Q n -1000-t -‘500 I j I I I I I I I I I—I I I I I I I I I I I I I I I I I I I 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 Time —-— 01290 _._ s120w + s130w —a- snow Figure 4.4 These results occurred because of the particular sequence of weather following the initial investment. Had more bad weather years followed installation of the subirrigation systems, the systems would have had a positive NPV stream sooner and 111 would have dominated the existing system earlier in the planning horizon. This point brings us neatly to the next stage of the analysis. 4.2.2. Net Present Value and Expected Value-Variance Analysis Use of Monte Carlo simulation techniques to generate distributions of 100 NPVS from the alternative investments captures the implications of weather sequence on the profitability of an irrigation investment. Expected NPV (ENPV) and standard deviation of NPV (SDNPV) are calculated from the NPV distributions. These results are presented in Table 4.5. Also included in Table 4.5 is a Grass Margins column which shows the difference between the ENPV of each WTMS option and DR60, the existing system. These results are evaluated from two perspectives. First, it is instructive to look at the ENPV results as if risk were not an issue, i.e., ignoring the standard deviations, and compare them with the NPV results from above. Second, risk can be addressed by applying EV efficiency criteria. Comparing the various options, we see in the Gross Margins column of Table 4.5 that if we ignore differences in standard deviation, DR60 has a higher ENPV than any option except 81308 and 81608, and therefore would be the preferred choice compared to the options with lower ENPV under a situation of profit maximization under certainty. These are the conditions considered above in the NPV analysis for the base weather sequence. However, the results here are surprisingly different. 112 TABLE 4.5: Expected NPV, SD of NPV, and Gross Margins Over DR60 Annualized Gross S S $ 5 ISI3OS $1,466 $ 16 s 77 S 4 I ISIGOS $1,650 8 68 $261 $ 19 * I SI20W $ 782 S 30 -$607 -$ 35 I SI30W $1,073 5 16 -$316 -$ 18 LSIGOW $1,292 5 67 -$ 97 -$ 6 Table 4.6 reproduces the NPV and ENPV results for easy reference. In general, the results are similar, as should be expected. However, comparing the two results, the subirrigation alternatives fared much better under the base weather sequence than under the Monte Carlo distribution of weather-yield outcomes. The DIF column shows the difference between the the two results, with DIF = NPV - ENPV. Under the base weather sequence, the NPV is in each case over $100 geater than the ENPV for the subirrigation options. This shows that the particular sequence of weather following installation of the subirrigation system under the base sequence of weather turned out to be a ”lucky draw“ for subirrigation options. If this had been the only approach taken, conclusions might have been biased in favor of the subirrigation options. Including the Monte Carlo simulation, which essentially consists of randomly drawing one hundred 30- year sequences of weather-yield outcomes to generate a probability distribution of NPVS, ’ Gross Margin refers to the difference between the ENPV of the existing system, DR60, and the ENPV of the investment alternative. 113 allows us to handle the randomness of weather. Comparing the NPV results under the base weather sequence with the ENPV results gives a much better appreciation of the sensitivity of NPV results to a particular ”draw" of weather. TABLE 4.6: Comparison of NPV and ENPV lsrzos $1,341 $1,187 5130s 91,599 $1,466 I sreos $1,767 $1,650 stzow $1,019 9 792 sraow $1,279 91,073 I SIGOW $1,444 51,292 B“ Up to this point, risk has not been taken into consideration. The benefit of subirrigation that is not captured by looking at either NPV or ENPV alone is its contribution to reducing variability of returns. Inspection of the standard deviations in Table 4.5 shows that in all cases, the subirrigation options have lower variability of returns than the drainage only options. Application of EV efficiency criteria to the drainage only options reveals that the DR60 dominates the other options because it has both higher ENPV and lower SDNPV than DR20 and DR30. DR60 must be compared separately with the surface water subirrigation options and the well water subirrigation options to reflect the two mutually exclusive water source situations available in the decision environment of this analysis. In comparing DR60 with the surface water 3 DIF is the difference between NPV and ENPV, i.e., NPV - ENPV. 114 subirrigation options, it is dominated by 81308 and 81608. Comparison of DR60 with the well water subirrigation options reveals that the existing system remains in the efficient set with all the three alternative options. Using EV efficiency criteria alone, the choice set between 81308 and 81608 and between DR60 and the well water subirrigation options cannot be further reduced to one efficient option for each set because the choice depends on the risk preferences of the decision maker. For example, while 81608 has a higher expected NPV it also shows more dispersion about that value as measured by a higher standard deviation. 81308 has a lower ENPV, but it also has a lower standard deviation and might be preferred by some decision makers who desire more stable returns, even if that means accepting a lower expected NPV. Graphically, the variability and level of returns can be easily visualized for the different WTMS options. The probability distribution of NPV for DR60, SI60W, 81308, and 81608 is depicted in Figures 4.5 - 4.8. This gaphical presentation gives us a better appreciation of the tradeoff between variability versus level of ENPV. Comparing 81308 and 81608, we can clearly see that the probability of getting a higher return with 81608 is quite high, but we can see equally well that a farmer who does not want to risk the slight probability of the lower returns in the negative tail of the distribution might feasibly choose 81308, where all the probability is essentially concentrated over the $1400 NPV interval. Some of the distributions of NPV are somewhat negatively skewed. This raises the issue of whether the EV criteria should be used to order distributions because the normality assumption is violated. Below stochastic dominance criteria are applied to the different options to see if the same efficient set is identified. 115 100 HISTOGRAM OF NPV r012 DR60 00‘ 70-1 PROBABIJTY (1N PERCENT) 8 900 ' 700 ' 900 '900 '1000'1100 1200 1900 1400 1900'1900'1700 NPV Figure 4. 5. 100 HISTOGRAM OF NPV r012 5150w 90-1 80‘ 70- 601 40- 30-1 PROBABILITY (IN PERCENT) 3 20d 10‘ O O. — — I j I fifn' '." '.I'r 1 I r 000 700 000 000 1000 1'00 1200 1300 I400 1500 I000 I700 N’V Figure 4 . 6. 116 HISTOGRAM OF NPV FOR $1305 100 ”+77 00-1 41 7°. 00‘ 40‘ 30‘ PROBABILITY (IN PERCENT) 3 20' 10. _ f 0 1900'1900'1700 900 '700 '900 '900 '1000'1100'1200'1900'140 NPV Figure 4.7. HISTOGRAM OF NPV FOR 51603 30‘ ,,,,,, 9999999 909 so eeeeee es e‘e' lee eeeeeeeee 21 es 0,. es 000000000 PROBABILITY (IN PERCENT) (I 0 use eeeeeeee O. 0 see 0,0,9 see so ole, so 101 ......... 0. O. 0 e sssssssssssss es es e e eeeeeeeeee 900 '700 '900 '900 '1009'1100'1200'1900'1400'1 N’V 500 1000 1700 Figure 4.8. 117 4.2.3. Stochastic Dominance Analysis Using a gaphical approach as described in the methodology chapter, application of FSD criteria allows us to eliminate inefficient distributions. First, DR60 is compared to the other drainage only options and then to the surface and well water source subirrigation options. For the drainage only WTMSS, DR60 dominates the other two by FSD (Figure 4.9). For surface water source subirrigation systems, 81208 is dominated by 81308, 81608, and DR60 by FSD (Figure 4.10). 81608 dominates DR60 by FSD. The ordering of DR60 and 81308 and the ordering of 81608 and 81308 must be determined by applying SSD criteria. For the well water source subirrigation systems, DR60 dominates all three options by FSD (Figure 4.11). In applying SSD criteria, the cumulative difference between the sets of CDFS (DR60 and 81308; 81608 and 81308) are evaluated to determine whether the cumulative sum of their differences ever changes sign. In the case of the 81308 - 81608 pair, a sign change does occur, meaning that the two options cannot be ordered by SSD criteria. For the DR60 - 81308 pair, no sign change occurs, so 81308 dominates DR60 by SSD. At this point we are left with a narrower choice set than the EV approach indicated: 81308 and 81608 still cannot be ordered, but the choice between DR60 and 81308 has been narrowed to 81308 by application of 88D criteria. As a final step in the risk analysis, the 81608 - 81308 pair is subjected to SDRF criteria. 118 CDFS OF DRAINAGE ONLY WTMSS 1900 1500- 1400- g 1900- i 1200- ? 1100 i 1000 g 900 ' 900 700 - 600 0.01 0.11 0.21 0.31 0.41 0.51 0.61 0.71 0.81 0.91 Cumulative Probability + DR20 + DR30 + DR60 Figure 4.9. COMPARISON OF CDFS OF DR60 AND SURFACE WATER SUBIRRIGATION SYSTEMS 1800 1700 7 1600 J Net Present Value 00 0.01 0.11 0.21 0.31 0.41 0.51 0.61 0.71 0.81 0.91 Cumrlative Probability + 81205 "+- 51305 4“ $1605 ‘3‘ DR60 Figure 4.10. 119 COMPARISON OF CDFS OF DR60 AND WELL WATER SUBIRRIGATION SYSTEMS 1500 1500 " -:::—::::=:; 33:23:" ...... ............ 1400« ------- “ 1300~ .- 1200-,_ 1100 ', 1000 ' 900 800 700 0.01 0.11 0.21 0.31 0.41 0.51 0.61 0.71 0.81 0.91 Cumulative Probability Net Present Value + SIZOW -‘— SI30W + SIGOW ‘9'- DR60 Figure 4.11 4.2.4. Stochastic Dominance with Respect to a Function Analysis In order to discriminate farther between the two top-ranked systems, 81308 and 81608, stochastic dominance with respect to a function was applied using Cochran and Raskin’s GSD 3.0 progam. The resulting risk aversion interval was adjusted to the scale of annual income from a 400 acre Huron County corn farm assuming a 4% real discount rate (following Raskin and Cochran, 1986). As a result, 81308 was found to be dominated by 81608 for all levels of absolute risk aversion less than .002. This implies that only a highly risk averse individual would prefer the more costly 81308 system when com sells for $240/bushel. 120 4.3. Sensitivity Analysis In the economic analysis, WTMSS have been compared by three methods: Basic NPV analysis, EV analysis, and stochastic dominance analysis. To simplify discussion in the sensitivity analysis, emphasis is placed on noting differences in the stochastic dominance relationship between DR60 and the subirrigation WTMS options under the base scenario (80) and the adjusted scenarios. In certain cases, reference is made to changes in the absolute values of expected NPV. Table 4.7 shows the expected NPV and standard deviation of NPV of the WTMSS under the different sensitivity tests. 4.3.1. Sensitivity to Potential Yield The first sensitivity test concerned the assumed potential yields. Under the base analysis, the potential yield under subirrigation (SPOTY) was assumed to be 180 bu / acre and that for drainage only 140 bu/ acre (DPOTY). Several different combinations of assumed potential yields were run in the economic analysis to determine the "switching point,” i.e., the point at which the dominance ordering changed such that DR60, the existing system, was no longer dominated by any of the other WTMSS as a result of changing the assumed potential yields. In all cases, when potential yields were changed, all necessary other changes in variable inputs and associated costs were also made. In reducing the SPOTY from 180 bu/acre to 170 bu/ acre while holding the DPOTY at 140 bu/acre (S8), or in keeping SPOTY at 180 bu/acre and increasing DPOTY to 150 bu/acre (811), the only relationship that changed was between DR60 and SI30W. Whereas before 81308 dominated DR60 by 88D, under the new yield relationship between SPOTY and DPOTY, they could no longer be ordered by SSD. 121 In reducing SPOTY to 160 bu/acre but keeping DPOTY at 140 bu/acre (89), the switching point occurred, meaning that DR60 was no longer dominated by either 81608 or 81308 by 88D criteria. When the potential yields were brought even closer together so that SPOTY was set at 160 bu/acre and DPOTY was set at 150 bu/acre (810), DR60 dominated all the subirrigation options by FSD. These results indicate that the economic analysis is somewhat robust vis a vis the assumed differences in potential yields. A 10 bu/acre reduction in SPOTY was necessary to eliminate the dominance of 81308 over DR60 and a 20 bu / acre reduction in SPOTY was necessary to eliminate dominance of $1608 over DR60. TABLE 4.7: Yield Sensitivity Analysis3 Water Table SPOTY 8 170 SPOTY 8 160 l SPOTY 8 180 Management DPOTY = 140 DPOTY 150 Investment “‘_‘“"_““"”“”‘ ” ’"’ "‘ ’ '““ “” Option ENPV SDNPV ENPV SDNPV ENPV SDNPV ENPV SDNPV DR20 947 88 947 88 1065 95 1065 95 DR30 1156 88 1156 88 1274 94 1274 94 DR60 1389 82 1389 82 1508 88 1508 88 S1208 1055 29 923 27 923 27 1187 31 $1308 1331 15 1196 14 1196 14 1466 16 81608 1519 64 1389 60 1389 60 1650 68 SI20N 650 28 518 27 518 27 782 30 8130" 938 16 803 15 803 15 1073 16 SI60W 1161 63 1031 60 1031 60 1292 67 3 ENPV and SDNPV for the base analysis are included in Table 4.8. 122 4.3.2. Financial Parameter Sensitivity Analysis A second set of sensitivity analyses of the economic results to changes in the assumed tax bracket (TB) and after-tax real rate of return (ATRR) revealed that the relationship among WTMSs does not change as the tax bracket is either decreased to 15% (85) or increased to 31% (86). However it does change with an increase in ATRR from 4% to 8% (87). After increasing ATRR, 81608 maintained its position of dominance over DR60. But DR60 dominated all other subirrigation options by FSD after the change. TABLE 4.8: Financial Parameter Sensitivity Analysis Water Table - Tax Bracket Tax Bracket Base Management ATTR - 8% TB = 15% TB 2 31% Anal sis ‘ Investment “"""‘_‘—”W""——‘~’— **‘ j Option 123 4.3.3. Investment Cost and Output Price Sensitivity Analysis Changes in the output price significantly changed the relationship among the WTMSS. At a lower output price of PC = $1.80 (82), which is the price farmers in the Saginaw Bay area are receiving for corn at the elevators after the 1992 harvest, DR60 dominates all W'I'MS options by FSD. In addition, the expected NPV of DR60 at the lower output price exceeds that of all other WTMSS. In fact, at the lower output price, only two of the subirrigation options, 81308 and 81608, had positive ENPV. At higher output prices this result is reversed. With PC = $2.85/bu (83) all of the surface water subirrigation options dominate DR60 by either FSD or 88D. For the well water subirrigation options, 8160W dominates DR60 by FSD and the pair SI3OW - DR60 cannot be ordered by 88D. For PC = $3.00/bu (84), which might be considered the upper bound on what farmers might expect to receive for their corn, DR60 is dominated by FSD or 88D by all possible subirrigation WTMS options except SHOW. The minimum corn price at which a subirrigation system stochastically dominates the alternative of no investment is $2.05/bu under FSD and $2.00/bu under 88D. In both instances, 81608 is the dominant system. 124 TABLE 4.9: Output Price Sensitivity Analysis Corn Price Corn Price Corn Price 8389 ' pea 91.90/00 pea 92.95/00 pc= 93.00/00 Anal_sis ; . ,,____.,L.,_S.______._ _-_______ .___—___—_—_—_—_——_——_.——_—_———‘ ENPV SDNPV ENPV SDNPV ENPV SDNPV ENPV SDNPV I Water Table Management . Investment Option DR20 I I | $1309 139 11 2462 20 2795 22 1466 16“ 81608 351 44 2624 85 2948 91 1650 68 SIZOW -528 20 1765 38 2092 41 782 30 SI30W -255 12 2069 20 2402 22 1073 16 SI6OW -7 44 2266 85 2591 91 1292 67 The final sensitivity analysis involved changing the values of certain costs associated with installing a subirrigation system. The installation cost estimates were based on estimates from drainage/subirrigation contractors, pump distributors, and well drilling firms. The costs given for drilling a well and for buying and installing the pumping system varied widely, while costs for other system components, including drainage tile and control structure installation varied only within a small range. To judge the sensitivity of the economic results to the values used in the base analysis, the cost of the well and pump were varied separately and then together. From conversations with drilling firm representatives, the cost of drilling an irrigation well can vary from $10,000 to $25,000, depending on the specific drilling conditions. A figure of $15,000 for well drilling was used in the base analysis. Under the base analysis, all of the three WTMSS with a well water source (8120W, SI30W, and SI60W) were dominated by DR60 by FSD. If a well drilling cost of $10,000 is used in 125 the economic analysis instead of $15,000 (814), 8160W and DR60 can no longer be ordered by SSD while DR60 maintains its position vis a vis the other two well water subirrigation systems, showing that economic results are only slightly sensitive to the assumed cost of the well in the base analysis. The pump installation costs used in the base analysis were quoted by contractors, but appeared to be somewhat inflated, based on figures quoted by the Huron County extension agent, James LeCureux, who is familiar with pump prices paid by certain farmers in the county. If the pump installation costs are reduced by 50% and the economic analysis rerun (813), the results change only slightly. 8160W and DR60 can no longer be ordered by 88D whereas under the base scenario, DR60 dominated SI60W FSD. The position of DR60 vis a vis the other WTMSS in the altered analysis remains the same as in the base analysis. If both the pump and well costs are reduced together (815), the basic relationship among the WTMSs changes more noticeably. 81308 dominates DR60 by FSD instead of 88D and SI60W dominates DR60 by FSD, reversing the relationship between these two options compared with the base analysis. 8130W and DR60 can no longer be ordered by 88D under this scenario. The result of the cost sensitivity analysis confirm that the economic analysis is relatively robust to changes in certain key cost parameters. Under all circumstances, changing the cost of inputs changes the expected NPV of the various options, but rarely are the relationships among the various WTMSS significantly changed. 126 TABLE 4.10: Investment Cost Sensitivity Analysis ' Water Table . Management Investment Pump Cost 8 Well Cost 8 50“ 3° Well 6 Pump Analysis SDNPV ‘ Option ENPV SDNPV DR20 947 88 947 88 947 88 947 88' ' DR30 1156 88 1156 88 1156 88 1156 88 DR60 1389 82 1389 82 1389 82 1389 82 $1208 1237 31 1187 31 1237 31 1187 31 S1305 1516 16 1466 16 1516 16 1466 16 81608 1699 68 1650 68 1699 68 1650 68 8120“ 846 30 882 30 947 30 782 30 SI30W 1140 16 1173 16 1238 16 1073 16 SI60N 1356 67 1392 67 1457 67 1292 67 In summary, the ranking of alternative WTMS investment options by stochastic dominance criteria is most sensitive to changes in yield response, output price, and after- tax real rate of return. It is less sensitive to financial parameters such as the tax bracket and the fixed cost of the irrigation pump and well. CHAPTER 5 SUMMARY AND CONCLUSIONS 5.1. Summary This study set out to evaluate alternative water table management system (WTMS) investments. The strategies evaluated include converting an existing drainage- only system at 60-ft tile spacings into a subirrigation/drainage system at the same 60-ft spacing (81608 and SI60W), reducing the drain spacing to 20 feet and 30 feet in a drainage-only system (DR20, DR30), and reducing the drain spacing to 20 feet and 30 feet in a subirrigation/drainage system (81208, 81308, 8120W, 8130W). For each of the subirrigation options, two different water supplies were considered, a well water supply and a surface water supply. The particular strategies chosen for analysis reflect actual conditions in Huron County and the other counties in the Saginaw Bay area. Many farmers are improving their existing drainage systems by ”splitting the tiles," i.e., reducing the spacing between the drains by adding an additional tile line or more between two existing drainage tiles. Typically, the drain spacing in the area is 60 to 66 feet. Thus farmers are reducing this spacing, usually to 30 feet. But some farmers who are installing new systems are spacing the drains at 20 to 25 feet. Reducing the spacing between drainage tiles improves uniformity of drainage and allows farmers to get onto their fields in the spring for planting and in the fall for harvest. Other farmers in the area are retrofitting their 127 128 drainage systems from drainage-only systems to subirrigation systems. This study looked at whether investing in a WTMS is likely to provide enough additional benefit to offset the cost of the investment. One other issue of interest was how much financial benefit the dominant surface water subirrigation strategy might generate toward financing an irrigation district to bring water from Lake Huron to farmers’ fields. This is an important issue because a large number of acres in Huron County that are otherwise highly suitable for subirrigation do not have a sufficient water supply. A simulation model, DRAINMOD, was used to generate yield and irrigation application amounts for 33 years of historic weather data from Flint, Michigan. DRAINMOD was chosen as the simulation model in the yield analysis because it captures the effect of both excess and deficient water stress on corn yields and it is specifically designed to study these effects under both subirrigation and drainage at different drain spacings. For these reasons it was an ideal choice for the present analysis. However, validation of the yield component of the model proved difficult because there was insufficient field data at a site where a long enough series of hourly rainfall data existed. Using the Flint weather data and historic corn yields for Genesee County, DRAINMOD tracked fairly well the fluctuations in yield. Using Flint weather and historic farm-level corn yield data, DRAINMOD performed less well. When DRAINMOD’s output was compared with the daily weather for the Flint station, an agometeorologist judged the predicted yield results to be realistic. In the first stage of the economic analysis, DRAINMOD yield and irrigation application amounts for the base weather sequence (1958-87) were used in conjunction 129 with investment, operating, and production cost data to calculate net present values for a 30-year planning horizon. Results of the NPV analysis revealed that two of the three surface water subirrigation options, 81308 and 81608, and one of the well water subirrigation options, SI60W, had higher NPV than the existing 60-ft drainage-only option. However, the existing system dominated the remaining subirrigation options and the two narrower spacing drainage-only options. The annualized goss margins for the dominant subirrigation systems over the existing system were $11 /acre for 81308, $21/acre for 81608, and $3/acre for SI60W. The base NPV analysis provided a measure of what a farmer could expect the NPV of the investment options to look like under the base weather sequence. But it did not answer the larger question of what a farmer could expect under different weather sequences. Application of Monte Carlo simulation techniques provided this extra insight. From the distribution of NPVS generated by drawing randomly one hundred 30-year sequences of weather-yield outcomes, expected net present values (ENPV) and standard deviations of net present value (SDNPV) were calculated. The ENPV gives a measure of how a farmer can expect the NPV of the investment alternatives to look given one hundred possible 30-year sequences of weather and the SDNPV provides insight into the variability of ENPV. Comparison of the NPV and ENPV results showed that under the base weather sequence, the subirrigation systems fared much better than under the randomized weather sequences. In all cases the NPV of subirrigation options was more than $100 geater than the ENPV of the same option. Looking only at ENPV and ignoring SDNPV initially, only the two surface water subirrigation systems at the wider drain 130 spacings, 81308 and 81608, had higher ENPVs than the existing system. 81308 had an annualized goss margin of $4/acre and 81608 had an annualized goss margin of $19/acre over the existing system. For the dominant surface water subirrigation system, 81608, the figure of $19/acre could be interpreted as the on-farm benefit of subirrigation and could be used as a measure of the willingness to pay a water use fee in an irrigation district. However, this figure would have to be considered an upper bound because in the cost calculations, labor costs and fixed costs such as insurance, land rent, and any depreciation and interest costs not associated with the WTMS investment itself were not included. Bringing the SDNPV back into the picture, application of EV efficiency criteria across investment options revealed that the same two surface water subirrigation strategies, 81308 and 81608 dominate the conventional 60-ft drainage-only system, DR60, The dominant strategies have both higher ENPVs and lower SDNPVs than the conventional system. Between 81308 and 81608 dominance could not be established under EV criteria. For circumstances where a surface water source is unavailable, neither could dominance between DR60 and SI60W be established using EV efficiency criteria because between the two there is a tradeoff between higher ENPV and higher variability of ENPV. DR60 has a higher ENPV of $1,389 compared with $1,292 for SI60W, but it also has a higher SDNPV of $82 compared with $67. Thus bringing standard deviations into the decision framework, 8160W remained in the efficient set with DR60, as had been the case in the base NPV analysis. Application of first and second degee stochastic dominance (FSD and 88D) criteria identified a narrower choice set than the EV approach indicated: 81308 and 81608 still could not be ordered and both still dominated DR60, 81608 by FSD and 81308 131 by 88D criteria. But using SSD criteria, DR60 dominated 8160W, whereas using EV efficiency criteria, the two could not be ordered. In order to discriminate between the two top-ranked systems, 81308 and 81608, stochastic dominance with respect to a function was applied and 81308 was found to be dominated by 81608 for all levels of absolute risk aversion less than .002, based on whole-farm annual net income. This implies that only a highly risk averse individual would prefer the more costly 81308 system. Sensitivity of the economic results to changes in yield assumptions, output price, cost assumptions and certain financial parameters was tested by varying these key parameters. The first sensitivity test concerned the assumed potential yields. Under the base analysis, the potential yield under subirrigation (SPOTY) was assumed to be 180 bu/acre and that for drainage only 140 bu/acre (DPOTY). A 10 bu/acre difference in either SPOTY or DPOTY eliminated the dominance of 81308 over DR60 and a 20 bu/acre reduction in SPOTY eliminated dominance of 81608 over DR60. The dominance ordering between both pairs was reversed completely when SPOTY was set at 160 bu/acre and DPOTY was set at 150 bu/acre. These results indicate that the economic analysis is only modestly robust vis a vis the assumed differences in potential yields. Changes in the assumed output price also significantly changed the stochastic dominance relationship among the investment options. Lower output prices favored DR60 and higher output prices favored the subirrigation options. At a price of $1.80/bu DR60 is no longer dominated by any of the subirrigation options. The minimum corn price at which a subirrigation system stochastically dominated DR60 was $2.05 /bu under 132 FSD and $2.00 under 88D. In both instances, 81608 was the dominant system. At the higher prices, all the subirrigation option except 8120W dominated DR60. Of the financial parameters tested, changing the tax bracket used in the analysis did not affect the stochastic dominance relationship among the various options; however, changing the after-tax real rate of return (ATRR) did. Increasing ATRR from 4% to 8% skewed the results in favor of DR60, the existing system. After the change, DR60 dominated all of the subirrigation options by FSD, except 81608, which still dominated DR60 by FSD. The economic results were robust to changing cost assumptions about the pump and well. 5.2. Conclusions This economic analysis of water table management investment options identified two subirrigation options as dominating the existing drainage-only system (DR60) under conditions of certainty and of risk. These were both surface water subirrigation systems, one with tile spacings at 30 feet (81308) and the other at 60 feet (81608). 81608 had an annualized goss ENPV of $19/acre over DR60. This figure could be used as a measure of the on-farm benefit of subirrigation for continuous corn production and hence as an upper bound on farmers’ willingness to pay to obtain a surface water supply (e.g., by participating in an irrigation district). In considering the two surface water subirrigation options, a farmer would have to be extremely risk averse to choose the narrower spaced option, 81308. The 60-ft tile spacing option, 81608, had an annualized ENPV $15 /acre higher than 81308. Its SDNPV was also $3/acre higher (in annualized terms); however, the difference in ENPV between 133 the two was larger enough that even moderately risk averse farmers would still choose 81608 over 81308. None of the well water source subirrigation systems dominated the existing system and neither did the narrower spaced drainage-only options. These results suggest that the additional investment costs of drilling a well and the higher pumping costs associated with deep well pumping offset the benefit of higher and more stable subirrigated yields and that the additional cost of investing in improved drainage on a Kilmanagh soil may not produce enough additional yield benefit to offset the investment costs. These results held under both assumptions of certainty and of risk. All of the economic findings in this analysis are valid under the assumption that continuous corn is being produced on the 40 acre field. In the Saginaw Bay area, the actual practice is to rotate some combination of corn, soybeans, beets, and dry beans. Including an appropriate rotation in the economic analysis would have to be done to gain a true appreciation of the economic outcome of investing in a water table management system. It is a limitation of the current study that these other crops could not be included due to time constraints. However, based on the results of other economic studies reviewed here (LeCureux and Booms, 1990a-d; LeCureux, 1991a,b) it appears that returns to subirrigation of a rotation including sugar beets would be higher than for a continuous corn production regime because subirrigated sugar beets produce a substantial net yield and net revenue benefit over drainage-only sugar beets at recent prices. For the other two crops commonly in the rotation, soybeans and dry beans, the results are mixed. Some years they yield a positive net revenue benefit to subirrigation and some years the benefit is negative (LeCureux and Booms, 1990b; LeCureux, 1991a,b). If we assume 134 their net contribution to the rotation is zero, including a profitable crap like sugar beet in the economic analysis of subirrigation under rotation would have to increase the net revenue benefit of the rotation over the continuous corn regime and hence the returns to subirrigation. Future research will have to look at the broader issue of the profitability of WTMS investments under a rotation. The economic results are also sensitive to the assumed corn price. The minimum corn price at which a subirrigation option, 81608, dominated the existing drainage-only system was $2.00/bu under 88D. If it were anticipated that corn prices were to remain below $2.00/bu in the future, farmers should not consider improving their water table management system. If, on the other hand, it is anticipated that corn prices will be higher than $2.00/bu, the surface water source subirrigation options at the wider drain spacings would provide farmers with higher net returns than their existing drainage-only system if surface water were available for irrigation at no extra cost. If corn prices were as high as $2.85-$3.00/bu, even the well water options at the 30- and 60-ft tile spacings would become more profitable than the existing system. Only at a $3.00/bu corn price would the on-farm benefit of subirrigation at 60-ft tile spacings using surface water (81608) produce enough additional benefit to offset water use fees as high as $35/ acre. The necessary corn price to produce an additional on-farm benefit of $25/acre over the existing system would be $2.70/bu. Another issue that future research will have to consider is the environmental spillover effects of alternative water table management investment options. Current research on these effects should provide the necessary data to conduct such an analysis. APPENDIX A BASIC coon FOR MONTE CARLO SIMULATION roe E[NPV] AND sothvn CALCULATIONS roe WTMS ANALYSIS DEFINT I-N 'INITIALIZATION OF MODEL PARAMETERS POUT I 2.4 'corn price in S/bu TB I .28 'tax bracket ATRR I .04 'after-tax real return OCI I .105 'interest on operating capital NRUNS I 100 'number of simulation runs NNTMS I 9 'number of WTMS options NYRS I 33 'number of years of weather data NNPV I 30 'number of loops for NPV calculation PBC a .57 'summary variable of all per 'bushel costs, including drying 'cost, harvesting fuel cost, ‘trucking/freight cost, and 'marketing cost. OPEN "C:\123\DATA\MONTE12A.OUT' FOR OUTPUT AS #1 OPEN "C:\123\DATA\MONTE128.0UT” FOR OUTPUT AS #2 OPEN "C:\123\DATA\MONTE12C.OUT" FOR OUTPUT AS #3 'DIMENSIONING OF ARRAYS DIM XNPVRUN(NRUNS) 'Array for NPV in the Monte Carlo 'simulation. DIM D2(NYRS, 2) 'Yield and volume associated with DIM D3(NYRS, 2) 'different WTMS. DIM D6(NYRS, 2) 'D2 = drainage: 20-ft tile spacing. DIM S2(NYRS, 2) '82 I subirrigation 20 ft spacing. DIM S3(NYRS, 2) 'etc. DIM serxas, 2) DIM A(NYRS, 2) DIM YR(NYRS) 'Array of years 1958-90. DIM SDNPV(NWTMS), ENPV(NWTMS) 'Arrays used in the SDNPV and ENPV 'calculations. DIM COUNT(7) 'Array for histograms. DIM K(NNPV * NRUNS) 'Array for storing the random #3. 'ARRAYS OF COSTS ASSOCIATED WITH THE DIFFERENT INVESTMENT OPTIONS 'SEE BELOW FOR DEFINITIONS. IN ALL CASES, WTMS 3 WATER TABLE MGT SYSTEM DIM CNTMS(NWTMS), PWAT(NWTMS), VPC(NNTMS), POTY(NWTMS) DIM DWELL(NWTMS), DPUMP(NWTMS), DTILE(NWTMS), DCS(NWTM8) 'VALUES FOR THE CWTMS I Initial Investment Cost for Each Investment 'Alternative (converted to S/acre figures). DATA 527, 269, 0, 944, 687, 435, 1339, 1082, 830 135 136 'VALUES FOR PHAT I Price of Water (converted to $/acre-cm) DATA 0, 0, 0, 0.59, 0.59, 0.59, 0.89, 0.89, 0.89 FOR IA . 1 To Nanns READ PNAT(IA) NEXT IA 'VALUES FOR VPC I Variable Production Costs (S/acre) DATA 105, 105, 105, 128, 128, 128, 128, 128, 128 FOR IA . 1 TO NWTMS READ VPC(IA) NExT IA 'VALUES FOR POTY I Potential Yield (bu/acre) DATA 140, 140, 140, 180, 180, 180, 180, 180, 180 FOR IA - 1 TO NWTMS READ POTY(IA) NEXT IA 'VALUES FOR DNELL I Depreciation on the Well for years 1-15 (S/acre) DATA 0, O, 0' 0' 0' O, 25' 25' 25 FOR IA - 1 TO'NWTNS READ DwELL(IA) NEXT IA 'VALUES FOR DPUMP I Pump Depreciation Pump, years 1-7 and 16-22 (S/acre) DATA 0, 0, 0, 16.43, 16.43, 16.43, 19.28, 19.28, 19.28 FOR IA I 1 TO NWTMS READ DPUMP(IA) NEXT IA 'VALUES FOR DTILE I Depreciation on the Tile for years 1-15 (S/acre) DATA 35, 18, 0, 52, 34, 18, 52, 34, 18 FOR IA I 1 TO NWTMS READ DTILE(IA) NEXT IA 'VALUES FOR DCS I Control Structure Depreciation, years 1-15 (Slacre) DATA 0, 0' Op 4' 4' ‘p 4' 4p 4 FOR IA I 1 TO NWTMS READ DCS(IA) NEXT IA 'VALUES FOR OCCS I Operating Costs for Control Structure (S/acre) DATA 0, 0, 0, 0.04, 0.04, 0.04, 0.04, 0.04, 0.04 FOR IA - 1 TO NNTMS READ OCCS(IA) NEXT IA 137 'VALUES FOR OCP I Operating Costs Associated with Pump DATA 0, 0, 0, 0.83, 0.83, 0.83, 0.98, 0.98, 0.98 FOR IA - 1 To NWTNS READ OCP(IA) NEXT IA 'VALUES FOR PLABOR I Labor Cost for Irrigation (S/acre) DATA 0, 0, 0, 3.4, 3.4, 3.4, 3.4, 3.4, 3.4 FOR IA . 1 TO NNTXs READ PLABOR(IA) NEXT IA 'VALUES FOR RPUHP I Replacement Cost for DATA 0, 0, 0, 30, 30, 30, 50, 50, 50 Pump Falls in Year 16 (S/acre) FOR IA - 1 To NWTNs READ RPUMP(IA) NEXT IA 'VALUES FOR THE YR MATRIX DATA DATA DATA DATA 1958, 1967, 1976, 1985, 1959, 1968, 1977, 1986, 1960, 1969, 1978, 1987, 1961, 1970, 1979, 1988, 1962, 1971, 1980, 1989, 1963, 1972, 1981, 1990 1964, 1973, 1982, 1965, 1966 1974, 1975 1983, 1984 FOR I . 1 TO NYRS READ XR(I) NEXT I 'VALUES FOR THE D2 MATRIX DATA DATA DATA DATA DATA DATA DATA 59.8, DATA DATA DATA DATA DATA DATA DATA 100.0 99.6 100.0, 100.0 99.6, 100.0 99.7, 100.0 100.0, 65.0 100.0, 75.9, 52.8, 100.0, 100.0, 100.0, 100.0, 73.8, 60.1, 100.0, 86.8, 100.0, 84.0, 96.8, 69.7, 93.6, 100.0, 100.0, 100.0, 100.0, 100.0 0 ‘ 000000 FOR JE - 1 TO 2 FOR IE . 1 TO NYRS READ D2(IE, JE) NEXT IE NEXT JE 'VALUES FOR THE D3 MATRIX DATA 100., 76.7, 84.5, 97.0, DATA 52.9, 100.0, 70.1, 94.0, 99.6 DATA 100., 100.0, 100., 100., 100. DATA 100.0, 74.0, 100.0, 99.6, 100.0 DATA 60.5, 100.0, 100.0, 99.8, 100.0 DATA 98.8, 87.1, 100.0, 100.0, 65.2 DATA 59.9, 100.0, 100.0 100.0 DATA DATA DATA DATA DATA DATA DATA FOR JE I NEXT 138 0. 0. 0. 0. 0. 0. 0., 0., 00' 0., 00' 00' 00' 0., 0., 0., 0., 00' 00' 0., 0., 0., 0., 0., 0e, 00’ 0. 00' 00' 00' 0., 00' 00' 1 TO 2 FOR IE . 1 To NYRS READ D3(IE, JE) NEXT IE 33 . 'VALUES FOR THE D6 MATRIX DATA DATA DATA DATA DATA DATA DATA DATA DATA DATA DATA DATA DATA DATA FOR JE I 1 NEXT 100.0, 55.6, 100.0, 100.0, 82.2, 100.0, 95.9, 76.1, 100.0, 90.2, 100.0, 86.3, 97.9, 100.0 72.4, 95.3, 99.6 100.0, 100.0, 100.0 100.0, 98.0, 100.0 100.0, 100.0, 100.0 100.0, 100.0, 67.2 100.0 C ‘ OOOOOO TO 2 FOR IE I 1 TO NYRS READ D6(IE, JE) NEXT IE JE 'VALUES FOR THE 82 MATRIX DATA DATA DATA DATA DATA DATA DATA DATA DATA DATA DATA DATA DATA DATA 100.0, 93.8, 100.0, 100.0, 99.1, 100.0, 100.0, 98.0 82.0, 92.2, 95.0, 99.9, 91.5 100.0, 99.0, 97.5, 85.6, 99.9 100.0, 91.5, 92.7, 100.0, 100.0 98.0, 100.0, 100.0, 100.0, 100.0 100.0, 99.9 100.0, 16.92, 26.31, 17.06, 20.46, 24.06, 20.69, 27.69, 100.0, 20.78, 19.06, 14.32, 19.33, 19.89, 22.00, 16.25, FOR JE I 1 TO 2 NEXT FOR IE I 1 TO NYRS 100.0 20.71, 24.36, 16.91, 19.27, 15.57, 19.79, 18.18 READ 82(IE, JE) NEXT IE JE 19.15, 24.95, 19.92, 20.57, 18.40, 17.24, 18.37 19.25 15.12 18.97 18.67 27.73 'VALUES FOR THE S3 DATA 100.0, 96.0, DATA 100.0, 100.0, DATA 91.9, 94.3, 9 DATA 100.0, 96.7, DATA 100.0, 99.5, DATA 99.6, 100.0, DATA 100.0, 99.7, DATA 14.40, 17.70, DATA 23.81, 15.46, DATA 13.51, 10.50, DATA 17.76, 17.74, DATA 22.08, 16.60, DATA 17.09, 18.80, DATA 25.41, 12.07, FOR JE'I 1 TO 2 FOR IE I 1 139 MATRIX 100.0, 100.0, 99.7 100.0, 100.0, 98.8 5.0, 100.0, 93.1 99.9, 98.2, 100.0 99.7, 100.0, 100.0 100.0, 100.0, 100.0 100.0 19.24, 16.60, 14.97 22.42, 22.36, 16.14 13.78, 16.45, 12.27 15.70, 17.65, 15.42 12.39, 14.95, 15.94 16.93, 13.83, 25.53 15.66 TO NYRS READ 83(IE, JE) NEXT IE NEXT JE 'VALUES FOR THE 86 DATA 100.0, 100.0, DATA 86.1, 100.0, DATA 97.5, 95.9, 1 DATA 100.0, 90.2, DATA 94.8, 100.0, DATA 100.0, 100.0, DATA 64.9, 100.0, DATA 7.83, 9.31, 1 DATA 9.89, 8.06, 1 DATA 6.17, 4.24, 7 DATA 9.38, 9.97, 7 DATA 10.61, 9.38, DATA 9.13, 10.02, DATA 3.80, 5.46, 9 FOR JE I 1 TO 2 FOR IE I 1 MATRIX 100.0, 100.0, 99.7 96.9, 96.8, 99.7 00.0, 100.0, 99.8 100.0, 98.0, 100.0 100.0, 100.0, 100.0 100.0, 100.0, 68.6 100.0 1.10, 10.17, 7.27 1.03, 10.36, 8.54 .37, 10.40, 6.86 .35, 8.85, 9.38 7.00, 9.02, 9.33 10.20, 7.44, 7.38 .14 TO NYRS READ S6(IE, JE) NEXT IE NEXT JE PRINT #1, PRINT #1, PRINT #2, PRINT #3, EASE SCENARIO" MONTE CARLO SIMULATION TO GENERATE ENPV, HISTOGRAM GENERATION FOR ALTERNATIVE WTMS MONTE CARLO SIMULATION TO GENERATE CDFS OF WTMS INVESTMENTS" SDNPV OF OPTIONS” INVESTMENTS” 'OUTERMOST LOOP - CONDITIONS FOR EACH WTMS ARE INITIALIZED FOR IA I 1 TO NNPV * NRUNS R . RND N - (NYRS - 1) X(IA) . FIX(N) NEXT IA 'Creates an Array of 3000 Random 'Numbers from 1-33 which are used * R 'in referencing a yield, volume + 1 'pair for the Monte Carlo runs. 140 FOR IA I 1 TO NWTMS FOR JE I 1 TO 2 NEXT JE PNAT . PWAT(IA) vrc - VPC(IA) POTY - POTY(IA) FOR IE - 1 TO NYRS IF IA - 1 THEN A(IE, IF IA - 2 THEN A(IE, IF IA - 3 THEN A(IE, IF IA - 4 OR IA . 7 IF IA . 5 OR IA . 8 IF IA - 6 OR IA . 9 NEXT IE ONTNs - ONTNs(IA) occs . OCCS(IA) OCP - 0CP(IA) TOT s o TDIFF . 0 FOR I I 1 TO 7 COUNT(I) . 0 NEXT I FOR I I 1 TO NWTMS ENPV(I) NEXT I I 0 FOR I . 1 TO NWTMS SDNPV(I) . 0 NEXT I PRINT #1, PRINT ’2, "WTMS”; IA “WTMS”; IA 'MONTE CARLO LOOP FOR I1 I 1 TO NRUNS 'RESET XNPV, XNPV I -CWTMS XNR I 0 DNR I 0 SUM1 I 0 SUM2 I 0 DP I 0 XNR, DNR, 'For each WTMS, the correct yield, 'volume matrix is chosen for the 'NPV calculations. I D2(IE, JD) I D3(IE, JD) I D6(IE, JE) A(IB, JE) I s2(IE, A(IE, JE) I S3(IE, A(IE, JE) . S6(IE, 'Selects correct prices and costs 'for alternate WTMSs. 'Sums NPVs for ENPV calculations. 'Difference between NPV and ENPV for 'SD calculations. 'Resets count to zero for histogram 'percentages. 'Resets ENPV to zero before 'each WTMS. 'Resets SDNPV to zero before 'each WTMS. SUMl AND DF TO ZERO BEFORE EACH SIMULATION 'initial cost WTMS (year zero) 'undiscounted net revenue 'discounted net revenue 'first sum in NPV calculation 'second sum in NPV calculation 'discount factor 'INNERMOST LOOP FOR CALCULATING NPV OVER A 30-YEAR INVESTMENT HORIZON FOR M I 1 TO NNPV IF M (I 7 THEN DPUMP I DPUMP(IA) 'Establishes correct depreciation 'periods for pump, well, tile, CS. ELSEIF M > 7 AND M 15 AND M XMAXVAL THEN XMAXVAL - XNPVRUN(I) NEXT I 142 PRINT ’2, USING “MINIMUM VALUE I ffff’”: XMINVAL PRINT #2, USING ”MAXIMUM VALUE I I####"; XMAXVAL DIM HIST(7) BARWIDTH I (XMAXVAL - XMINVAL) / 7 PRINT ’2, " PRINT #2, USING ”BARWIDTH: ##F”; BARNIDTH FOR I - 1 TO 7 EIST(I) - XMINVAL + BARWIDTH * (I - 1) NEXT I PRINT #2, "LOWER LIMITS ON HISTOGRAM EARS” FOR I I 1 TO 7 PRINT #2, ”BAR"; I; PRINT #2, USING ”LOWER LIMIT: ##f’"; HIST(I) NEXT I FOR J I 1 TO NRUNS I I 8 100 I I I - 1 IF XNPVRUN(J) >I HIST(I) THEN COUNT(I) I COUNT(I) + 1 ELSE 100 NEXT J PRINT #2, "HISTOGRAM: PERCENTAcEs IN EACH BARz" FOR I a 1 TO 7 PRINT #2, ”PERCENTAGE IN BAR”; I; (COUNT(I) / NRUNS) NEXT I 'SORT TREATMENTS BY NPV IN DESENDING ORDER DO SWAPS% - FALSE‘ FOR I . 1 TO (NRUNS - 1) IF XNPVRUN(I) < XNPVRUN(I + 1) THEN SWAP XNPVRUN(I), XNPVRUN(I + 1) . SWAPS% . I END IF NEXT I LOOP WHILE SWAPS! PRINT #3, ”Full sort results are for WTMS"; IA; ": ” FOR I I 1 TO NRUNS PRINT #3, USING "#####"; XNPVRUN(I) NEXT I NEXT IA 'END OF OUTERMOST LOOP END APPENDIX E DRAINMOD DATA INPUTS *t***********t*******t***t**t****************************i************** d r a I n m o d version: north carolina micro 4.05 Last update: sept 1991 language: ms fortran v 5.0 Copyright (c) 1990, north carolina state university all rights reserved Drainmod is a field-scale hydrologic model developed for the design of subsurface drainage systems. The model was developed by researchers at the dept. of biological and agricultural engineering, north carolina state university under the direction of R. W. Skaggs. ************************************************************************ ******************* * D r a I n m O d * ******************* data read from input file: c:\dm40\input40\dr2k12.Lis title of run ************ dr, 20 ft tile spacing, kilmanagh soil I kilmancm, flint weather, dry slope 1.05, Net slope I .68, Sf I 1.25, Plant days I 8, 1958-90 climate inputs ******* ****** description (variable) value file for raindata .............. C:\dm40\weather\fnt5891.Rai file for temperature/pet data .. C:\dm40\weather\fnt5890.Tem rainfall station number..........................(Rainid) 202846 temperature/pet station number...................(Tempid) 202846 starting year of simulation..................(Start year) 1958 starting month of simulation................(Start month) 1 ending year of simulation......................(End year) 1990 ending month of simulation....................(End month) 12 temperature station latitude...................(Temp lat) 43.03 Heat index..........................................(Hid) 40.00 ET multiplication factor for each month 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 143 144 DRAINAGE SYSTEM DESIGN ********************** *** CONVENTIONAL DRAINAGE *** JOB TITLE: DR, 20 ft tile spacing, Kilmanagh Soil I RilmanCM, Flint Weather, NET SLOPE I .68, SF I 1.25, PLANT DAYS I 8, 1958-90 STMAX I 2.50 CM SOIL SURFACE __/) /)__ : : z : ADEPTH I152. CM DDRAIN I 102 CM o — SDRAIN = 610 CM ----------- o - \ EFFRAD = .51 CM HDRAIN = 30. CM IMPERMEABLE LAYER ////////////////[////////////////////////////////////////////////// DEPTH SATURATED HYDRAULIC CONDUCTIVITY (CM) (CM/HR) .0 - 74.0 30400 112.0 - 152.0 .150 depth to drain I 102.0 Cm effective depth from drain to impermeable layer I 29.8 Cm distance between drains I 610.0 Cm maximum depth of surface ponding I 2.50 Cm effective depth to impermeable layer I 131.8 Cm drainage coefficient(as limited by subsurface outlet) I .95 Cm/day actual depth from surface to impermeable layer I 152.0 Cm surface storage that must be filled before water can move to drain I .50 Cm factor -g- in kirkham eg. 2-17 I13.01 width of ditch bottom I 1.0 Cm side slope of ditch (horiz:vert) I .10 : 1.00 Initial water table depth I 38.0 Cm DEPTH OF WEIR FROM THE SURFACE DATE 1/ 1 2/ 1 3/ 1 4/ 1 5/ 15 6/ 15 WEIR DEPTH 102.0 102.0 102.0 102.0 102.0 102.0 DATE 7/ 1 8/ 15 9/ 1 10/ 1 11/ 1 12/ 1 WEIR DEPTH 102.0 102.0 102.0 102.0 102.0 102.0 145 SOIL INPUTS *********** VOID VOLUME WATER TABLE DEPTH (CM) (CM) .0 .0 1.0 27.6 2.0 39.3 3.0 49.1 4.0 59.0 5.0 69.5 6.0 80.2 7.0 91.1 8.0 101.4 9.0 111.8 10.0 121.9 11.0 131.1 12.0 140.4 13.0 149.7 14.0 158.2 15.0 166.7 16.0 175.1 17.0 183.6 18.0 192.1 19.0 200.4 20.0 206.9 21.0 213.4 22.0 219.8 23.0 226.3 24.0 232.8 25.0 239.2 26.0 245.7 27.0 252.2 28.0 258.7 29.0 265.1 30.0 271.6 35.0 303.9 40.0 336.3 45.0 368.6 50.0 400.9 60. 465.6 70.0 567.5 80.0 711.7 90.0 855.8 146 SOIL WATER CHARACTERISTIC VS VOID VOLUME VS UPFLUX HEAD WATER CONTENT VOID VOLUME UPFLUX (CH) (CH/CM) (CH) (CH/HR) . .4760 .00 .5000 10.0 .4520 .13 .5000 20.0 .4280 .52 .1599 30.0 .4040 1.17 .0527 40.0 .3800 2.07 .0237 50.0 .3780 3.09 .0131 60.0 .3760 4.10 .0048 70.0 .3742 5.05 .0029 80.0 .3725 5.98 .0017 90.0 .3707 6.90 .0011 100.0 .3690 7.86 .0009 110.0 .3670 8.83 .0007 120.0 .3650 9.80 .0005 130.0 .3629 10.88 .0004 140.0 .3609 11.96 .0004 150.0 .3589 13.03 .0003 160.0 .3569 14.21 .0002 170.0 .3549 15.39 .0002 180.0 .3529 16.57 .0001 190.0 .3508 17.75 .0001 200.0 .3488 18.93 .0000 210.0 .3468 20.48 .0000 220.0 .3448 22.02 .0000 230.0 .3428 23.57 .0000 240.0 .3408 25.12 .0000 250.0 .3387 26.66 .0000 260.0 .3367 28.21 .0000 270.0 .3347 29.75 .0000 280.0 .3327 31.30 .0000 290.0 .3307 32.85 .0000 300.0 .3287 34.39 .0000 350.0 .3213 42.12 .0000 400.0 .3191 49.85 .0000 450.0 .3169 57.58 .0000 500.0 .3147 65.31 .0000 600.0 .3104 72.25 .0000 700.0 .3060 79.19 .0000 800.0 .3017 86.13 .0000 900.0 .2973 93.06 .0000 GREEN AMPT INFILTRATION PARAMETERS W.T.D. A 3 (CM) (CH) (CH) .000 .000 3.300 10.000 .440 3.300 20.000 .890 3.300 40.000 1.710 3.300 60.000 1.770 3.270 80.000 1.840 3.270 100.000 1.890 3.270 150.000 4.050 3.270 200.000 4.050 3.270 1000.000 4.050 3.270 147 second period 3.40 1.30 2.00 9/ 1 11/ 1 a 18 TRAFFICABILITY ************** first requirements period Iminimum air volume in soil (cm): 3.40 -Maximum allowable daily rainfall(cm): 1.30 -Minimum time after rain to continue tilling: 2.00 working times -date to begin counting work days: 4/20 -date to stop counting work days: 6/ 1 -first work hour of the day: 8 -last work hour of the day: 20 crop *ttt soil moisture at crop wilting point I .22 High water stress: begin stress period on S/ 1 end stress period on 9/ 1 crop is in stress when water table is above drought stress: begin stress period on 5/ 1 end stress period on 9/ 1 MO DAY ROOTING DEPTH(CM) 1 1 3.0 5 7 3.0 S 25 5.0 6 8 20.0 6 22 35.0 7 13 40.0 8 9 45.0 9 10 30.0 10 15 10.0 10 20 3.0 30 cm 148 YIELD INPUTS *ttttttttttt last planting day without yield loss (JLAST): length of growing season (IGROW) 1st planting day reduction factor (PDRF) days using lst planting delay fact (DELAYl) 2nd planting day reduction factor (PDRF2) total days of work before planting (REQWRK) .0000 .5000 1.7500 1.3000 .5000 10W: 30 IOH: 11 SI : 11.160000 D : -1.170000 E : 5.800000E-02 F0 : I5.0000003-04 YI : 100.000000 SF : 1.250000 YRMAX : 0.000000E+00 YSLOPE: 1.050000 YRDMAX: 100.000000 DSLOPE: 6.8000003-01 PD : 121 IGR: 105 SDF: 1 IPS(I),IPE(I),CSD(I),II1,IOH 0 9 .2000 10 19 .2000 20 35 .2200 36 49 .2800 50 59 .3200 60 69 .2800 70 79 .1900 80 89 .1200 90 99 .0800 100 104 .0400 105 105 .0200 CSI(I),II1,IOW .0000 .0000 .0000 .5000 1.0000 1.0000 1.3000 1.3000 1.2000 1.0000 .0000 .0000 **> Total simulation timeI .0000 4.333 minutes. 130 105 6.000000E-01 .0000 1.0000 2.0000 1.3000 .0000 .0000 22.000000 1.800000 8.000000 .0000 1.0000 2.0000 1.3000 .0000 .0000 149 dr2k12.lil c:\DN40\INPUT4O\DR2X12.OEN c:\DH40\INPUT40\RILCHX12.sIN C:\DM40\INPUT40\CN105K12.YIN dr2k12.gen *** Job Title *** DR, 20 ft tile spacing, Kilmanagh Soil I RilmanCM, Flint Weather, dry slope 1.0 WET SLOPE I .68, SF I 1.25, PLANT DAYS I 8, 1958-90 *** Printout and Input Control *** 3 l 0 C:\DM40\OUTPUT40\ *tt Climate tit 202846, C:\DM40\WEATHER\FNT5891.RAI 202846 C:\DM40\WEATHER\FNT5890.TEN 1958 1 1990 12 4303 40 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 *** Drainage System Design *** 1 102.00 29.84 610.00 2.50 0.95 0.50 13.01 38.00 0 , 0 , 0 0 , 0 , 0 , 0 0 , 0 , 0 , 0 , 1.00 0.10 1107 1107 1107 110715 7615 51 1 5115 76 1107 1107 1107 1107 iii $0113 *** 152.00 0.51 74. 3.40 112. 2.79 152. 0.15 99 *** Trafficability *** 420 6 1 820 3. 9 111 1 818 3. iii Crop *t* 0.220 5 1 9 1 30.00 5 1 9 1 11 1 l 3.0 5 7 3.0 525 5.0 6 8 20.0 622 35.0 713 40.0 8 9 45.0 910 30.0 1015 10.0 1020 3.0 1231 3.0 *** Wastewater Irrigation *** 0 0 0 365 0 0 0 0 0 0 0 0 0 0 0.00000 0.00000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 F‘H wt» Raw 00 4 4 cn105k12.yin 130 105 0.6000 8.0000 1.8000 22.0000 3011 11.1600 -1.1700 0.0580 -0.0005 100.0000 1.2500 100.000 1.050 100.000 0.680 121 105 1 0 90.20 10 190.20 20 350.22 36 490.28 50 590.32 60 690.28 70 790.19 80 890.12 90 990.081001040.041051050.02 0.000.000.000.000.000.000.500.501.001.001.001.001.752.002.001.301.301.30 1.301.30 1.201.000.500.000.000.000.000.000.000.00 kilcmk12 . sin 4 LAYER- XILMANAGH, HURON CO. MICHIGAN 1120 0.47600 0.38000 0.37600 0.36900 0.32200 0.29300 0.26600 0.25700 0.24800 0.24100 0.23700 0.0000 3.0000 6.0000 9.0000 12.0000 15.0000 20.0000 25.0000 30.0000 35.0000 40.0000 45.0000 60.0000 75.0000 90.0000 120.0000 150.0000 200.0000 500.0000 1000.0000 10 0.00 10.00 20.00 40.00 60.00 80.00 100.00 150.00 200.00 1000.00 0.0 -40.0 -60.0 -100.0 -333.0 -1000.0 -2000.0 -3000.0 -5000.0 -10000.0 -15000.0 0.0000 0.0120 0.0470 0.1050 0.1870 0.2930 0.5200 0.8130 1.1700 1.5910 2.0720 2.5820 4.1020 5.5200 6.8960 9.7970 13.0340 18.9320 65.3140 100.0000 0.00 0.44 0.89 1.71 1.77 1.84 1.89 4.05 4.05 4.05 0.5000 0.5000 0.5000 0.5000 0.5000 0.3417 0.1599 0.0869 0.0527 0.0340 0.0237 0.0172 0.0048 0.0020 0.0011 0.0005 0.0003 0.0000 0.0000 0.0000 3.30 3.30 3.30 3.30 3.27 3.27 3.27 3.27 3.27 3.27 150 APPENDIX C DRAINAGE-ONLY SITE DESIGN by Dr. Harold Belcher Department of Agricultural Engineering Michigan State University Subsurface Drain 7° 0"“ Pipe Lateral O .5 _l b 3 E ‘5 5 0 8: {a a: O 3.9 030. 151 APPENDIX D SUBIRRIGATION SITE DESIGN by Dr. Harold Belcher Department of Agricultural Engineering Michigan State University Subsurface Drain Subsurface Draln Pipe Main Plpe Lateral To Outlet Head Control Stand 152 APPENDIX E AVERAGE MONTHLY TEMPERATURE AND PRECIPITATION FOR BAD AXE, HARBOR BEACH, AND FLINT, MICHIGAN FOR THE PERIOD 1951-1980 153 I Station Temperature (°F) Precipitation I (in) Bad Axe Avg Daily Avg Daily Average Average I Max Min January 29.1 14.3 21.7 1.86 February 31.2 14.3 22.7 1.87 March 39.5 22.2 30.9 2.30 April 55.0 33.8 44.4 2.66 May 67.0 43.0 55.0 2.60 June 77.4 53.5 65.4 2.86 July 81.5 57.5 69.5 3.01 August 80.2 56.4 68.3 2.66 September 72.3 49.9 61.1 2.48 October 62.0 41.3 51.7 2.39 November 45.8 31.0 38.4 2.39 December 33.4 20.3 26.9 2.09 Yearly Avg 56.2 36.5 46.3 29.17 Harbor Avg Daily Avg Daily Average Average fl Beach Max Min January 28.7 15.3 22.0 2.66 February 30.5 15.8 23.2 2.31 March 37.7 23.2 30.5 2.47 April 52.0 34.1 43.0 2.84 May 63.0 42.7 52.8 2.63 June 73.9 53.2 63.5 3.18 July 78.2 58.7 68.5 3.22 August 77.3 58.4 67.9 3.16 September 70.3 51.9 61.1 2.75 October 60.2 42.8 51.5 2.66 November 45.4 32.2 38.8 2.89 December 33.3 21.3 27.3 3.17 Yearly Av 54.2 37.5 45.8 33.84 Flint Avg Daily Avg Daily Average Average Max Min January 31.9 17.1 24.5 1.63 February 32.8 16.7 24.8 1.76 March 41.3 24.1 32.7 2.20 April 55.9 34.7 45.3 2.85 May 68.0 44.7 56.4 3.16 June 78.5 54.7 66.6 3.32 July 83.5 58.9 71.2 2.86 August 81.6 57.6 69.6 3.43 September 73.4 50.5 62.0 2.53 October 62.1 40.6 51.4 2.09 November 46.3 30.1 38.2 2.05 December 34.6 20.6 27.2 1.70 57.5 37.5 47.5 29.58 APPENDIX F DRAINMOD WATER BALANCE VERIFICATION Dr. Harold Belcher Department of Agricultural Engineering Michigan State University Introduction: DRAINMOD simulation results have been compared to observed data at a number of locations including North Carolina, South Carolina, Louisiana, Florida, Georgia, Iowa, and Ohio [notez references are probably in DRAINMOD USER MANUAL]. In all cases, it was reported the simulated water balance results (water table depth and/or subdrain discharge) were reasonably close to observed data. To evaluate applicability of the model to Michigan climate and poorly drained soils, observed water table depth data from a water table management research site near Bannister Michigan was compared to Drainmod simulated water table depths for two years of record. Bannister Site: The Bannister site is described by Belcher, 1990. Soil at the site is classified as a Ziegenfuss silty clay loam and has particle size gradation and hydraulic properties similar to typical Saginaw Bay area shallow water table, poorly drained soils (see Table 1). Soil property inputs for DRAINMOD resulted from application of the DRAIN MOD ”soilprep" computer model using the field measured soil water characteristic data as follows: Lateral saturated hydraulic conductivity values for each soil layer used for DRAINMOD (see Table 1) are the mean of the field determined values reported by Fogiel and Belcher (1990) for the areas that do not include sand. The values used are the average of velocity permeameter (Merva, 1987) lateral measurements, 36 each at depths 0.45 m, 0.60 m and 0.75 m. For the ”soilprep" model, the lateral conductivities were reduced by 50% to approximate vertical saturated hydraulic conductivity for each layer. Results: The results of this study are presented in Figures 1, 2 and 3 for the 1986 growing season and subdrain lateral spacings of 6 m, 12 m and 18 m, respectively and Figures 4, and 5 for the 1987 growing season and 6 m and 18 m subdrain lateral spacings. The reader is referred to Belcher, 1990 for a detailed description of the Bannister site, instrumentation and observed water table figures. 154 H5 Table 2. Properties of a Ziegenfuss soil. typical at the Bannister, Michigan research site (Rosek, 1992). Depth Sand Clay Organi c Matter inches 3-1 25-38 28 36 36 0.7 1.50 1.1 892 B-l CI 38-52 20 36 44 0.7 1.56 1.1 lB-l c2 52-60 0 37 63 0.7 1.71 0.1* * Values assumed for DRAINMOD simulations. 750 no A e l E 5am; >501) V g 25.0- -25.o 0.0; - - LIL- -‘fi IV 3.0 :65 40,: lo I I manusemusoum ’E‘ -— simulated V 30.31 103 § 1 '3 g «4 .1 U ' 3 .- .- < I ”"11 -fij—f ' r'fif' rfififiv ' I"' V ''''' ”-5 m :5: m m 200 m 223 2.): m DAYS FROM STAR? OF 1986 MISTER SITE OBSERVATION WELL WC2L1 Figure 1. Observed and predicted water table elevation (m) for subdrains spaced at 2 m for 1986 growing season at the Bannister site. 156 Table 3. Volumetric water contents (cm/cm) at various soil tensions (cm) for typical Ziegenfuss soil at Bannister, Michigan research site (Rosek, 1992). 0 cm 0.5241 0.4646 0.4604 0.4567 0.442 0.4304 7‘ 0.5011 0.4343 0.4299 0.4258 0.3981 0.388 0.5151 0.4486 0.4451 0.4362 0.388 0.3816 0.5212 0.4541 0.4492 0.4318 0.3906 0.3786 B-l C2 0.5647 0.5013 0.4972 0.4906 0.4483 0.4334 J Sample 2000 cm 3000 cm 5000 cm 10000 15000 C111 CID B-1 Ap 0.415 0.4074 0.3864 0.3805 0.368 B-1 Bgl 0.3769 0.3698 0.3649 0.3589 0.3475 B-1 892 0.3686 0.3606 0.3469 0.3412 0.3305 B-l C1 0.3608 0.3527 0.3415 0.3361 0.3269 B-1 C2 0.4154 0.4052 0.3855 0.3802 0.3688 [_l—=L_____ L l. MW RAIN (mm) 214‘ wuss mu: summon (m) 25.0‘ I I I - 25.0 0.0“ -0.0 20‘ m ”.07!!!“ 30.10 n :q Fwfl > 20.8 1% T 18: m 206 2i: 228 236 2 DAYS FROM sum 0F1698 BANNISTER SITE OBSERVATION WELL W84M2 Figure 2. Observed and predicted water table elevation (m) for subdrains spaced at 12 m for Bannister site. 1986 growing season at the RAIN (mm) WAIER TABLE ELEVATION (m) A .Ll- I I V V Y 200‘ ELEV: 30.18mte 30.48:!) ' v 178 1‘81 Wis :66 I V Tie V V25: 2511' V DAYS FROM START OF 1956 BANNISIER SITE OBSERVAIION WELL WCGMI Figure 3. Observed and predicted water table elevation (m) for subdrains spaced at 18 m for 1986 growing season at the Bannister site. 158 73.0- 750 A I E 1 5 50m -so.o V 1 3 no; I .m 0:: V - V v V I L v- W'OD 30.0 '30.0 A E v z 8 3 —J U ‘3 3 K t‘.’ ( 3 29.3 r - v v - v v v v w 210 III? 192 202 212 222 232 2‘2 DAYS FROM START OF 1987 BANNISTER STTE OBSERVATION WELL WDZLI rigure 4. Observed and predicted water table elevation (m) for subdrains spaced at 6 m for 1987 growing season at the Bannister site. 75.0 - 75 O ? E 50.0 woo v g 25.0 I >210 0,3r I - Y v I. Y‘ WLOO ”.0‘ Jon 0 oh” I zonamsoumu ”Jam A { E V E U U i '— K 5 3 ”-3 v v v r v v 1 v r v V V v 29.0 Ill? ‘92 202 2‘2 222 232 2‘? DAYS FROM START OF 1987 BANNISTER SITE OBSERVATION WELL WDGLI Figure 5. Observed and predicted water table elevation (m) for subdrains spaced at 16 m for 1987 growing season at the Bannister site. 159 Discussion: The predicted water table elevations in Figures 1 through 5 result from DRAINMOD version 4.0 without modification of inputs to calibrate the model. DRAINMOD allows a single water table control weir setting per month. During both the 1986 and 1987 seasons, the Bannister water table control weirs were lowered following selected rainfall events thus weir settings were sometimes altered more often than one time in a month. When this occurred, a variance between observed and predicted water table depth is to be expected. This is best illustrated by looking at Figure 2 at 188 days. The water table at the Bannister site was observed by monitoring instrumentation that allowed hourly observation. During peak evapotranspiration days, it was observed that the water table varied as much as 15 cm from morning to mid-afternoon. DRAINMOD provides a daily water table depth output which does not provide the observed hourly fluctuation. The water table depth instrumentation at Bannister has a limited operating range. Examination of the figures indicate that the actual water table depth sometimes exceeded the upper limits. Thus, DRAINMOD data showing a higher water table elevation than was observed are not unexpected. Considering the preceding discussion, the results as provided by Figures 1 through 4 indicate strongly that DRAINMOD does accurately model the change in water table depth with time for a poorly drained soil in Michigan. References: Belcher, H. W. 1990. Water table management to maximize the economic efficiency of biomass production. PhD. Dissertation. Agricultural Engineering Department, Michigan State University. Fogiel, A. C. and H. W. Belcher. 1990. Watertable management effects on soil structure. ASAE Paper No. 90-2604. ASAE, St. Joseph, MI. Rossek, M. 1992. Personal Communication, Michigan State University, E. Lansing, MI. Merva, G. E. 1987. The velocity penneameter technique for rapid determination of hydraulic conductivity in-situ. Proceedings of the Third International Workshop on Land Drainage. Ohio State University, Columbus, OH. APPENDIX 0 INVESTMENT COSTS Contractor Estimates For Investment Options DR20 Cost Estimates for Modifying a Conventional Drainage System from 60-ft Tile Spacings to 20-ft Spacings Diameter Quantity Item of Work (inches)(# or ft) Item Cost Item Cost Item Cost Avg Cost Laterall 4 58660 $20,444 $22,984 $19,758 $21,062 $20,444 $22,984 $19,758 $21,062 DR30 Cost Estimates for Modifying a Conventional Drainage System from 60-ft Tile Spacings to 30-ft Spacings Diameter Quantity Item of Work (inches)(# or ft) Item Cost Item Cost Item Cost Avg Cost Laterals 4 29330 $10,472 $11,692 $10,079 $10,748 $10,472 $11,692 $10,079 $10,748 DR60 Existing System: No Costs 81208 or SIZOW Cost Estimates for Modifying a Conventional Drainage System from 60-ft Tile Spacings to 20-ft Spacings and Retrofitting for Subirrigation, Surface Water Source or Well Water Source Diameter Quantity Item of Work (inches)(# or ft) Item Cost Item Cost Item Cost Avg Cost Head Stands 3 $1,900 $2,600 $1,135 $1,878 Irrigation Inlets 3 $400 $400 $250 $350 Water Supply 6 1100 $4,120 $2,190 $3,961 $3,424 Laterals 4 58660 $19,994 $22,371 $19,392 $20,586 Mains/Submain 6 1027 $1,180 $1,199 $1,174 $1,184 (2) 8 1405 $2,158 $2,173 $2,394 $2,242 (3) 10 856 $2,190 $2,040 $2,456 $2,229 (4) 12 370 $1,197 $1,149 $1,396 $1,247 $33,139 $34,123 $32,158 $33,140 160 SI3OS or SI30W 161 Cost Estimates for Modifying a Conventional Drainage System from 60-ft Tile Spacings to 30-ft Spacings and Retrofitting for Subirrigation, Surface Water Source or Well Water Source Diameter Quantity Item of Work (inches)(# or ft) Item Cost Item Cost Item Cost Avg Cost Head Stands 3 $1,900 $2,600 $1,135 $1,878 Irrigation Inlets 3 $400 $400 $250 $350 Water Supply 6 1100 $4,120 $2,190 $3,961 $3,424 Laterals 4 29330 $10,022 $11,225 $9,713 $10,320 Mains/Submain 6 1027 $1,180 $1,199 $1,174 $1,184 (2) 8 1405 $2,158 $2,173 $2,394 $2,242 (3) 10 856 $2,190 $2,040 $2,456 $2,229 (4) 12 370 $1,197 $1,149 $1,396 $1,247 $23,166 $22,978 $22,479 $22,875 81608 or SI60W Cost Estimates for Retrofitting a Conventional Drainage System at 60-ft Tile Spacings to a Subirrigation System at 60-ft Tile Spacings, Surface Water Source or Well Water Source Diameter Quantity Item of Work (inches)(# or ft) Item Cost Item Cost Item Cost Avg Cost $1,878 Head Stands 3 $1,900 $2,600 $1,135 Irrigation Inlets 3 $400 $400 $250 $350 Water Supply 6 1100 $4,130 $2,350 $3,967 $3,482 Mains/Submain 6 1027 $1,190 $1,272 $1,180 $1,214 (2) 8 1405 $2,168 $2,288 $2,400 $2,285 (3) 10 856 $2,200 $2,180 $2,462 $2,281 (4) 12 370 $1,207 $1,261 $1,402 $1,290 $13,194 $12,351 $12,796 $12,781 SUMMARY OF COSTS FOR EACH INVESTMENT OPTION DR20 DR30 DR60 SIZOS S130S $1605 SIZOH $1309 $1609 Hell 30 30 30 30 30 30 315.000 315.000 315.000 Pump 30 30 30 34.600 34.600 34.600 35.400 35.400 35.400 CS 30 30 30 32.228 $2.228 $2.228 $2.228 $2.228 $2.228 Tile 321.062 310.748 30 330.912 320.646 310.552 330.912 320.646 310.552 TOTAL:321.062 310.748 30 337,740 327,475 317.381 353.540 343.275 333.181 DEPRECIATION FOR EACN COMPONENT DR20 DR30 DR60 S1205 $130S $1605 $1209 SI30W S1609 Hell 30 30 30 30 30 30 31.000 31.000 31.000 Pump 30 30 30 3657 3657 3657 3771 3771 3771 CS 30 30 30 3149 3149 3149 3149 3149 3149 Tile 31.404 3717 30 32.061 31.376 3703 32.061 31.376 3703 TOTAL: 31.404 3717 30 32.866 32.182 31.509 33.981 33.296 32.623 OPERATING COSTS FOR DIFFERENT COMPONENTS 162 DR20 DR30 DR60 $1205 $1305 $1605 $1209 $1309 $1609 Hell 30 3O 3O 3O 30 3O 3O 3O 30 Pump 30 30 30 333 333 333 339 339 339 CS 30 30 30 31 31 31 31 31 31 Tile 30 30 30 3O 3O 30 3O 3O 30 TOTAL 30 30 30 334 334 334 340 340 340 SUMMARY OF COSTS FOR EACH INVESTMENT OPTION 1N PER ACRE TERMS DR20 DR30 DR60 $1208 81308 81608 SI2OW SI30W SI60W W011 $0 $0 $0 $0 $0 $0 $375 $375 $375 Pump $0 $0 $0 $115 $115 $115 $135 $135 $135 CS $0 $0 $0 $56 $56 $56 $56 $56 $56 Tile $527 $269 $0 $773 $516 $264 $773 $516 $264 TOTAL: $527 $269 $0 $944 $687 $435 $1,339 $1,082 $830 DEPRECIATION FOR EACH COMPONENT IN PER ACRE TERMS DR20 DR30 DR60 81205 $1308 $1608 SIZOW SI30W SIéOW W911 $0 $0 $0 $0 $0 $0 $25 $25 $25 Pump $0 $0 $0 $16 $16 $16 $19 $19 $19 CS $0 $0 $0 $4 $4 $4 $4 $4 $4 Tile $35 $18 $0 $52 $34 $18 $52 $34 $18 TOTAL: $35 $18 $0 $72 $55 $38 $100 $82 $66 OPERATING COSTS FOR DIFFERENT COMPONENTS IN PER ACRE TERMS DR20 DR30 DR60 81205 81308 $1608 SIZOW SIBOW SI60W W611 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Pump $0.00 $0.00 $0.00 $0.82 $0.82 $0.82 $0.96 $0.96 $0.96 CS $0.00 $0.00 $0.00 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 Tile $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 TOTAL: $0.00 $0.00 $0.00 $0.86 $0.86 $0.86 $1.00 $1.00 $1.00 APPENDIX M SIMULATION YIELD RESULTS H1: DR20 - Drainage Only at 20-Ft Tile Spacings tit“!**i'kt*fitti‘tt****i***t*t***********t*t*i*******t****it*****t*i****t*****t'ki ---------- RUN STATISTICS ---------- time: 1/ 7/1993 9 0:25 input file: C:\DM40\INPUT40\DR2K12.L1S parameters: free drainage and yields calculated drain spacing . 610. cm drain depth a 102.0 cm 501 - STRESS plant plant harv. RELATIVE YIELDS (%) excess drought date delay date excess drought delay overall 1958 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1959 .0 22.9 125 0. 230 100.0 75.9 100.0 75.9 1960 .0 15.3 125 0. 230 100.0 84.0 100.0 84.0 1961 .0 3.0 125 0. 230 100.0 96.8 100.0 96.8 1962 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1963 .0 45.0 125 0. 230 100.0 52.8 100.0 52.8 1964 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1965 .0 28.9 125 0. 230 100.0 69.7 100.0 69.7 1966 .0 6.1 125 0. 230 100.0 93.6 100.0 93.6 1967 .0 .4 125 0. 230 100.0 99.6 100.0 99.6 1968 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1969 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1970 .0 .0 125 0. 230 100.0 100 0 100.0 100.0 1971 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1972 .0 .0 125 0. 230 100 0 100 0 100.0 100.0 1973 .0 .0 125 O. 230 100.0 100.0 100.0 100.0 1974 .1 25.0 125 0. 230 100.0 73.8 100.0 73.8 1975 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1976 .0 .4 125 0. 230 100.0 99.6 100.0 99.6 1977 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1978 .0 38.0 125 0. 230 100.0 60.1 100 0 60.1 1979 .0 .0 125 0. 230 100 0 100.0 100.0 100.0 1980 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1981 .0 .3 125 0. 230 100.0 99.7 100.0 99.7 1982 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1983 .0 1.4 125 0. 230 100.0 98.6 100.0 98.6 1984 .0 12.5 125 O. 230 100.0 86.8 100.0 86.8 1985 .0 .0 125 0. 230 100.0 100 0 100.0 100.0 1986 .0 .0 125 0. 230 100.0 100 0 100.0 100.0 1987 .0 33.3 125 0. 230 100 0 65.0 100.0 65.0 1988 .0 38.3 125 0. 230 100.0 59.8 100.0 59.8 1989 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1990 .0 .0 125 0. 230 100.0 100 0 100.0 100.0 AVG 0 8 2 125 0 230. 100.0 91.4 100.0 91 4 1Ei3 HZ: DR30 - Drainage Only at 30-Ft Tile Spacings *Rfi‘tfiitfifiififitfttfiittfi'ttttttittit*ifitWittt*ttttttktttfiit*tttttttttttttt*****titit ---------- RUN STATISTICS ---------- time: 1/ 7/1993 9 0:29 input file: C:\DM40\INPUT40\DR3K12.LIS parameters: free drainage and yields calculated drain spacing - 914. cm drain depth - 102.0 cm SDI - STRESS plant plant harv. RELATIVE YIELDS (%) excess drought date delay date excess drought delay overall 1958 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1959 .0 22.2 125 0. 230 100.0 76.7 100.0 76.7 1960 .0 14.8 125 0. 230 100.0 84.5 100.0 84.5 1961 .0 2.9 125 0. 230 100.0 97.0 100.0 97.0 1962 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1963 .0 44.8 125 0. 230 100.0 52.9 100.0 52.9 1964 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1965 .0 28.5 125 0. 230 100.0 70.1 100.0 70.1 1966 .0 5.7 125 0. 230 100.0 94.0 100.0 94.0 1967 .0 .4 125 0. 230 100.0 99.6 100.0 99.6 1968 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1969 .0 .0 125 0. 230 100.0 100 0 100.0 100.0 1970 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1971 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1972 .0 .0 125 0. 230 100.0 100.0 100 0 100.0 1973 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1974 2.2 23.7 125 0. 230 98.5 75.1 100.0 74.0 1975 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1976 .0 .4 125 0. 230 100.0 99.6 100 0 99.6 1977 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1978 .0 37.6 125 0. 230 100.0 60.5 100.0 60.5 1979 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1980 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1981 .0 .2 125 0. 230 100.0 99.8 100.0 99.8 1982 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1983 .0 1.2 125 0. 230 100.0 98.8 100.0 98.8 1984 .0 12.3 125 0. 230 100.0 87.1 100.0 87 1 1985 .0 .0 125 0. 230 100.0 100.0 100 0 100 0 1986 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1987 .0 33.1 125 0. 230 100 0 65.2 100.0 65.2 1988 .0 38.2 125 0. 230 100.0 59.9 100.0 59.9 1989 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1990 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 AVG 1 8 l 125. 0. 230. 100 0 91 5 100.0 91 5 164 165 NB: 0R60 - Drainage Only at 60-Ft Tile Spacings tti‘ttttttitfitittti‘tittfititfltiittfitttfit*ttt*tittit****t****i*tt*fi *‘ktiiiii‘tiitttt * ---------- RUN STATISTICS ---------- time: 1/ 7/1993 8 0:20 input file: C:\DN40\1NPUT40\DR6K12.LIS parameters: free drainage and yields calculated drain spacing - 1830. cm drain depth - 102.0 cm SDI - STRESS plant plant harv. RELATIVE YIELDS (X) excess drought date delay date excess drought delay overall 1958 .0 .0 125 0. 230 100 0 100.0 100.0 100 0 1959 .0 17.0 125 0. 230 100.0 82.2 100.0 82.2 1960 .0 13.0 125 0. 230 100.0 86.3 100.0 86.3 1961 .0 2.0 126 0. 231 100.0 97.9 100.0 97 9 1962 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1963 .0 42.3 125 0. 230 100.0 55.6 100.0 55.6 1964 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1965 .0 26.3 125 0. 230 100.0 72.4 100.0 72.4 1966 .0 4.5 125 0. 230 100.0 95.3 100.0 95.3 1967 .0 .4 125 0. 230 100.0 99.6 100.0 99 6 1968 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1969 6.0 .0 125 0. 230 95.9 100.0 100.0 95.9 1970 .0 .0 125 0. 230 100.0 100 0 100.0 100 0 1971 .0 .0 125 0. 230 100.0 100.0 100 0 100 0 1972 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1973 .0 .0 125 0. 230 100.0 100 0 100.0 100 0 1974 13.1 15.7 125 0. 230 91.1 83.5 100.0 76.1 1975 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1976 3.0 .0 125 0. 230 98.0 100.0 100.0 98 0 1977 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1978 .0 35.2 125 0. 230 100.0 63.1 100.0 63 1 1979 .0 .0 125 0. 230 100 0 100.0 100.0 100 0 1980 .0 .0 125 0. 230 100 0 100.0 100.0 100.0 1981 .0 .0 125 0. 230 . 100.0 100.0 100.0 100.0 1982 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1983 .0 .0 125 0. 230 100 0 99.9 100.0 99.9 1984 .0 9.3 125 0. 230 100.0 90.2 100.0 90.2 1985 .0 .0 125 0. 230 100 0 100.0 100.0 100 0 1986 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1987 .0 31.2 125 0. 230 100.0 67.2 100.0 67 2 1988 .0 36.6 125 0. 230 100.0 61.5 100 0 61 5 1989 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1990 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 AVE 7 7 1 125. 0. 230. 99.5 92.6 100.0 92.2 166 N4: S120 - Subirrigation at 20-Ft Tile Spacings t‘ktttt*****”***i*tti’tfl‘itttttitfitt*tt‘ktitttt‘ktttttttttittttttttt‘kttttttttti it t t t ---------- RUN STATISTICS ---------- time: 1/ 7/1993 8 0:34 input file: C:\DM40\1NPUT40\SIZK12.LIS parameters: subirrigation run and yields calculated drain spacing - 610. cm drain depth - 102.0 cm SDI - STRESS plant plant harv. RELATIVE YIELDS (%) excess drought date delay date excess drought delay overall 1958 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1959 9.1 .0 125 0. 230 93.8 100.0 100 0 93.8 1960 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1961 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1962 .1 .0 125 0. 230 99.9 100.0 100.0 99.9 1963 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1964 1.4 .0 125 0. 230 99.1 100 0 100.0 99.1 1965 .0 .0 125 0. 230 100 0 100.0 100.0 100.0 1966 .0 .0 125 0. 230 100.0 100.0 100 0 100.0 1967 2.9 .0 125 0. 230 98.0 100.0 100.0 98.0 1968 26.5 .0 125 0. 230 82.0 100.0 100.0 82.0 1969 11.5 .0 125 0. 230 92.2 100.0 100.0 92.2 1970 7.4 .0 125 0. 230 95.0 100.0 100.0 95.0 1971 .l .0 125 0. 230 99.9 100.0 100.0 99.9 1972 12.5 .0 125 0. 230 91.5 100.0 100.0 91.5 1973 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1974 1.4 .0 125 0. 230 99.0 100.0 100 0 99 0 1975 3.7 .0 125 0. 230 97.5 100.0 100.0 97.5 1976 21.2 .0 125 0. 230 85.6 100.0 100 0 85.6 1977 .1 .0 125 0. 230 99.9 100.0 100.0 99.9 1978 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1979 12.6 .0 125 0. 230 91.5 100.0 100.0 91.5 1980 10.7 .0 125 0. 230 92.7 100 0 100.0 92.7 1981 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1982 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1983 2.9 .0 125 0. 230 98.0 100.0 100.0 98.0 1984 .0 .0 125 0. 230 100.0 100 0 100.0 100.0 1985 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1986 .1 .0 125 0. 230 100.0 100.0 100.0 100.0 1987 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1988 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1989 .5 .0 125 0. 230 99.7 100.0 100.0 99.7 1990 .0 .0 125 0. 230 100 0 100 0 100.0 100.0 AVG 3.8 0 125. 0. 230. 97.4 100 0 100.0 97.4 167 H5: 5130 - Subirrigation at 30-Ft Tile Spacings *ititi’itiittit‘kti*i’fi‘ktfiit**********itifiiitiittt‘tiifiti’ttt*iti’i‘itttttitttttifi*i'ttt ---------- RUN STATISTICS ---------- time: 1/ 7/1993 9 0:43 input file: C:\DM40\INPUT40\SI3K12.LIS parameters: subirrigation run and yields calculated drain spacing - 914. cm drain depth - 102.0 cm S01 - STRESS plant plant harv. RELATIVE YIELDS (X) excess drought date delay date excess drought delay overall 1958 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1959 5.9 .0 125 0. 230 96.0 100.0 100.0 96.0 1960 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1961 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1962 .5 .0 125 0. 230 99.7 100.0 100.0 99.7 1963 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1964 .0 .0 125 0. 230 100.0 100 0 100.0 100.0 1965 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1966 .0 .O 125 O. 230 100.0 100.0 100.0 100.0 1967 1.7 .1 125 0. 230 98.8 99.9 100.0 98.8 1968 11.9 .0 125 0. 230 91.9 100.0 100 0 91.9 1969 8.3 .0 125 0. 230 94.3 100.0 100.0 94 3 1970 7.3 .0 125 0. 230 95.0 100.0 100.0 95.0 1971 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1972 10.2 .0 125 0. 230 93.1 100.0 100.0 93.1 1973 .O .0 125 0. 230 100.0 100.0 100.0 100 0 1974 4.9 .0 125 0. 230 96.7 100 0 100.0 96.7 1975 .2 .O 125 0. 230 99.9 100.0 100.0 99.9 1976 2.6 .0 125 0. 230 98.2 100.0 100.0 98.2 1977 .0 .0 125 0. 230 100 0 100.0 100.0 100.0 1978 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1979 .7 .0 125 0. 230 99.5 100.0 100.0 99.5 1980 3.4 .0 125 0. 230 97.7 100.0 100.0 97.7 1981 .0 .O 125 O. 230 100.0 100.0 100.0 100.0 1982 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1983 .7 .0 125 0. 230 99.6 100.0 100.0 99.6 1984 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1985 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1986 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1987 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1988 .0 .0 125 0. 230 100 0 100.0 100 0 100.0 1989 .4 .0 125 0. 230 99.7 100.0 100.0 99.7 1990 .0 .0 125 0. 230 100.0 100.0 100 0 100.0 AVG 1 8 0 125. 0. 230. 98.8 100.0 100.0 98.8 168 HS: 8160 - Subirrigation at 60-Ft Tile Spacings *ttiitttiititi’ii’i’tittt*tittttit‘kttttttttttittti’tfiitttitt*tttiitttttttttttttttt it ---------- RUN STATISTICS ---------- time: 1/ 7/1993 0 0:38 input file: C:\DM40\INPUT40\516K12.LIS parameters: subirrigation run and yields calculated drain spacing - 1830. cm drain depth . 102.0 cm SDI - STRESS plant plant harv. RELATIVE YIELDS (%) excess drought date delay date excess drought delay overall 1958 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1959 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1960 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1961 .0 .0 126 0. 231 100.0 100.0 100.0 100.0 1962 .5 .0 125 0. 230 99.7 100.0 100.0 99.7 1963 .0 13.2 125 0. 230 100.0 86.1 100.0 86 1 1964 .0 .0 125 0. 230 100.0 100 0 100.0 100.0 1965 .0 3.0 125 0. 230 100.0 96.9 100.0 96.9 1966 .0 3.0 125 0. 230 100.0 96.8 100.0 96.8 1967 .0 .3 125 0. 230 100 O 99.7 100.0 99.7 1968 3.7 .0 125 0. 230 97.5 100.0 100.0 97 5 1969 6.0 .0 125 0. 230 95.9 100.0 100.0 95 9 1970 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1971 .0 .0 125 0. 230 100 0 100.0 100 0 100.0 1972 .3 .0 125 0. 230 99.8 100.0 100 0 99.8 1973 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1974 14.4 .0 125 0. 230 90.2 100.0 100.0 90 2 1975 .0 .0 125 0. 230 100.0 100.0 100 0 100 0 1976 3.0 .0 125 0. 230 98.0 100.0 100 0 98.0 1977 .0 .0 125 0. 230 100.0 100.0 100 0 100 0 1978 .0 5.0 125 0. 230 100.0 94.8 100.0 94 8 1979 .0 .0 125 O. 230 100.0 100.0 100.0 100 O 1980 .0 .0 125 0. 230 100.0 100 0 100.0 100 0 1981 .0 .0 125 0. 230 100 0 100.0 100.0 100 0 1982 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1983 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 1984 .0 .0 125 O. 230 100.0 100.0 100.0 100 0 1985 .0 .0 125 0. 230 100 0 100.0 100 0 100.0 1986 .0 .0 125 0. 230 100.0 100 0 100.0 100.0 1987 .0 29.9 125 0. 230 100.0 68.6 100.0 68.6 1988 .0 33.4 125 0. 230 100.0 64.9 100 0 64.9 1989 .0 .0 125 0. 230 100.0 100.0 100.0 100.0 1990 .0 .0 125 0. 230 100.0 100.0 100.0 100 0 AVG 8 2 7 125. 0. 230. 99.4 97.2 100.0 96.6 APPENDIX 1 SIMULATION HATER BALANCE RESULTS 11: DR20 - Drainage Only at 20-Ft Tile Spacings *ifitt***t****i****tt**t‘ti‘kfifitfi‘ti’ttfifiiifii‘t."*tt‘kttittt ** *t*fi**********t**t * t *‘k t ---------- RUN STATISTICS ---------- time: 1/ 7/1993 8 0:25 input file: C:\0M40\1NPUT40\DR2K12.LIS parameters: free drainage and yields calculated drain spacing - 610. cm drain depth 8 102.0 cm YEAR RAINFALL INFILTR ET DRAIN RUNOFF DRYDAYS UORKDAYS SEH PUMP VOL 1958 51.00 51.00 44.91 11.91 .00 28.00 98.80 .0 .00 1959 95.83 95.83 56.58 38.41 .00 31.00 87.28 .0 .00 1960 56.97 56.97 40.54 18.54 .00 46.00 98.00 .0 .00 1961 77.57 77.57 52.37 24.01 .00 27.00 93.25 .0 .00 1962 59.16 59.16 39.83 19.45 .00 52.00 87.83 .0 .00 1963 45.92 45.92 35.60 10.20 .00 56.00 98.00 .0 .00 1964 62.46 62.46 43.87 18.54 .00 37.00 95.17 .0 .00 1965 65.51 65.51 40.20 25.12 .00 53.00 100.03 .0 .00 1966 52.17 52.17 35.01 17.23 .00 61.00 99.20 .0 .00 1967 76.94 76.94 42.91 33.97 .00 40.00 95.90 .0 .00 1968 86.11 86.11 53.71 31.66 .00 13.00 100.58 .0 .00 1969 72.59 72.59 43.84 29.83 .00 13.00 94.92 .0 .00 1970 75.39 75.39 51.32 24.00 .00 26.00 91.40 .0 .00 1971 67.36 67.36 42.35 23.21 .00 34.00 97.47 .0 .00 1972 96.60 96.60 55.29 40.94 .00 14.00 81.55 .0 .00 1973 84.79 84.79 44.26 42.04 .00 42.00 91.42 .0 .00 1974 82.27 82.27 38.19 43.99 .00 49.00 95.90 .3 .00 1975 115.27 115.27 56.09 59.37 .00 26.00 83.61 .0 .00 1976 81.69 81.69 44.44 37.69 .00 40.00 88.87 .0 .00 1977 73.30 73.30 51.55 21.76 .00 42.00 88.75 .0 .00 1978 60.17 60.17 39.56 17.75 .00 60.00 91.97 .0 .00 1979 64.06 64.06 43.97 22.61 .00 23.00 105.00 .0 .00 1980 80.98 80.98 54.51 25.90 .00 18.00 90.85 .0 .00 1981 86.51 86.51 53.65 33.20 .00 35.00 86.48 .0 .00 1982 72.34 72.34 46.06 26.54 .00 37.00 98.70 .0 .00 1983 81.64 81.64 50.99 30.83 .00 33.00 81.50 .0 .00 1984 76.58 76.58 46.76 27.77 .00 46.00 88.28 .0 .00 1985 103.17 103.17 52.54 52.72 .00 36.00 85.40 .0 .00 1986 95.43 95.43 57.33 38.26 .00 23.00 84.98 .0 .00 1987 74.27 74.27 51.53 22.63 .00 69.00 92.38 .0 .00 1988 70.21 70.21 43.52 26.24 .00 74.00 98.00 .0 .00 1989 82.14 82.14 55.55 25.95 .00 20.00 90.53 .0 .00 1990 84.02 84.02 47.68 36.24 .00 43.00 91.33 .0 .00 AVG 76.07 76.07 47.17 29.05 .00 37.79 92.53 0 .00 169 12: DR30 - Drainage Only at 30-Ft Tile Spacings ti‘fii’i***itt***ii**********tit‘ktifiiittttttitittttttiittttttttttttitttttt*ttttt*tt ---------- RUN STATISTICS ---------- time: 1/ 7/1993 9 0:29 input file: C:\DM40\INPUT40\DR3K12.LIS parameters: free drainage and yields calculated drain spacing - 914. cm drain depth - 102.0 cm YEAR RAINFALL INFILTR ET DRAIN RUNOFF DRYDAYS HORKDAYS SEH PUMP VOL 1958 51.00 51.00 45.08 11.49 .00 27.00 98.80 .0 .00 1959 95.83 95.83 57.06 37.34 .00 30.00 87.28 .0 .00 1960 56.97 56.97 40.73 19.04 .00 46.00 98.00 .0 .00 1961 77.57 77.57 52.56 23.60 .00 27.00 93.25 .0 .00 1962 59.16 59.16 40.22 19.21 .00 48.00 87.83 .0 .00 1963 45.92 45.92 35.84 9.96 .00 56.00 97.00 .0 .00 1964 62.46 62.46 44.10 18.13 .00 35.00 95.17 .0 .00 1965 65.51 65.51 40.47 24.46 .00 53.00 100.03 .0 .00 1966 52.17 52.17 35.12 17.47 .00 61.00 99.20 .0 .00 1967 76.94 76.94 43.31 33.34 .00 40.00 95.90 .0 .00 1968 86.11 86.11 53.94 31.14 .00 13.00 100.58 .0 .00 1969 72.59 72.59 43.98 30.39 .00 11.00 94.92 .0 .00 1970 75.39 75.39 51.63 23.57 .00 26.00 91.40 .0 .00 1971 67.36 67.36 42.48 22.52 .00 33.00 97.47 .0 .00 1972 96.60 96.60 55.35 40.96 .00 14.00 81.55 .0 .00 1973 84.79 84.79 44.48 41.82 .00 41.00 91.42 .0 .00 1974 82.27 82.27 38.77 43.78 .00 47.00 95.90 11.1 .00 1975 115.27 115.27 56.25 59.07 .00 26.00 83.14 .0 .00 1976 81.69 81.69 44.76 37.61 .00 39.00 88.33 .0 .00 1977 73.30 73.30 51.81 21.39 .00 42.00 88.75 .0 .00 1978 60.17 60.17 39.78 17.46 .00 60.00 91.97 .0 .00 1979 64.06 64.06 44.15 22.19 .00 23.00 105.00 .0 .00 1980 80.98 80.98 55.08 25.44 .00 18.00 90.85 .0 .00 1981 86.51 86.51 53.88 33.18 .00 35.00 86.48 .0 .00 1982 72.34 72.34 46.39 26.02 .00 35.00 98.70 .0 .00 1983 81.64 81.64 51.23 30.74 .00 33.00 81.50 .0 .00 1984 76.58 76.58 47.11 26.87 .00 46.00 88.28 .0 .00 1985 103.17 103.17 52.75 53.12 .00 35.00 85.36 .0 .00 1986 95.43 95.43 57.55 38.14 .00 23.00 84.18 .0 .00 1987 74.27 74.27 51.70 22.22 .00 69.00 92.38 .0 .00 1988 70.21 70.21 43.63 26.07 .00 74.00 98.00 .0 .00 1989 82.14 82.14 55.76 25.98 .00 20.00 90.53 .0 .00 1990 84.02 84.02 48.17 35.23 .00 42.00 91.33 .0 .00 AVG 76.07 76.07 47.43 28.76 .00 37.21 92.44 3 .00 170 13: DR60 - Drainage Only at 60—Ft Tile Spacings ******fittiittitittfifliiiitttt*ttiitttiiititfifitttititt*iitittttttitttfitttitt*‘A’tttt ---------- RUN STATISTICS ---------- time: 1/ 7/1993 0 0:20 input file: C:\DN40\INPUT40\DR6K12.LIS parameters: free drainage and yields calculated drain spacing - 1830. cm drain depth - 102.0 cm YEAR RAINFALL INFILTR ET DRAIN RUNOFF DRYDAYS UORKDAYS SEV PUMP VOL 1958 51.00 51.00 46.09 10.32 .00 26.00 98.80 .0 .00 1959 95.83 95.83 59.27 33.54 .00 25.00 87.28 .0 .00 1960 56.97 56.97 41.92 19.73 .00 41.00 98.00 .0 .00 1961 77.57 77.57 53.52 21.54 .00 23.00 90.75 .0 .00 1962 59.16 59.16 42.28 17.57 .00 41.00 87.83 .0 .00 1963 45.92 45.92 37.57 8.79 .00 48.00 96.30 .0 .00 1964 62.46 62.46 45.71 15.77 .00 31.00 95.17 .0 .00 1965 65.51 65.51 41.48 22.35 .00 52.00 100.03 .0 .00 1966 52.17 52.17 36.01 17.22 .00 56.00 99.20 .0 .00 1967 76.94 76.94 45.05 30.98 .00 35.00 93.43 .0 .00 1968 86.11 86.11 54.68 30.13 .00 13.00 100.58 .0 .00 1969 72.59 72.59 44.81 30.74 .00 7.00 91.12 30.1 .00 1970 75.39 75.39 53.21 21.69 .00 26.00 91.40 .0 .00 1971 67.36 67.36 43.52 20.49 .00 32.00 96.47 .0 .00 1972 96.60 96.60 55.73 40.63 .00 11.00 76.85 .0 .00 1973 84.79 84.79 46.38 39.94 .00 37.00 91.42 .0 .00 1974 82.27 82.27 41.36 41.89 .00 38.00 93.72 65.7 .00 1975 115.27 115.27 57.18 57.64 .00 23.00 74.29 .0 .00 1976 81.69 81.69 46.39 36.84 .00 27.00 82.11 15.0 .00 1977 73.30 73.30 53.42 19.49 .00 37.00 88.75 .0 .00 1978 60.17 60.17 40.84 16.60 .00 58.00 91.97 .0 .00 1979 64.06 64.06 45.08 20.49 .00 21.00 105.00 .0 .00 1980 80.98 80.98 56.14 24.77 .00 17.00 90.85 .0 .00 1981 86.51 86.51 55.44 32.02 .00 27.00 82.12 .0 .00 1982 72.34 72.34 47.64 24.22 .00 34.00 98.70 .0 .00 1983 81.64 81.64 53.11 29.10 .00 27.00 80.50 .0 .00 1984 76.58 76.58 48.92 24.27 .00 41.00 88.28 .0 .00 1985 103.17 103.17 54.10 52.73 .00 34.00 83.18 .0 .00 1986 95.43 95.35 58.71 37.03 .07 21.00 79.39 .0 .00 1987 74.27 74.27 52.74 20.56 .00 69.00 92.38 .0 .00 1988 70.21 70.21 44.95 25.14 .00 72.00 98.00 .0 .00 1989 82.14 82.14 56.58 25.52 .00 19.00 90.53 .0 .00 1990 84.02 84.02 50.09 32.44 .00 30.00 91.33 .0 .00 AVG 76.07 76.07 48.79 27.34 .00 33.30 91.08 3 4 .00 171 14: $120 - Subirrigation at 20-Ft Tile Spacings *ttttfiitti.*itittfitttititttttttii‘t*ttttttttitttttttttttt *ttt‘ttf‘kitttttt *ttt * t** t ---------- RUN STATISTICS ---------- time: 1/ 7/1993 9 0:34 input file: C:\DM40\INPUT40\SIZK12.LIS parameters: subirrigation run and yields calculated drain spacing - 610. cm drain depth - 102.0 cm YEAR RAINFALL INFILTR ET DRAIN RUNOFF DRYDAYS HORKDAYS SEH PUMP VOL 4 1958 51.00 51.00 52.77 .05 .00 21.00 98.80 .0 -16.92 1959 95.83 95.83 62.30 32.70 .00 12.00 87.28 72.3 -20.78 1960 56.97 56.97 52.78 5.32 .00 14.00 98.00 .0 -20.71 1961 77.57 77.57 56.15 21.21 .00 13.00 93.25 .0 -19.15 1962 59.16 59.16 52.40 6.88 .00 26.00 87.33 .5 ~18.37 1963 45.92 45.92 55.35 -9.59 .00 5.00 96.30 .O -26.31 1964 62.46 62.46 55.30 7.15 .00 14.00 95.17 4.8 -19.06 1965 65.51 65.51 56.21 9.11 .00 22.00 99.03 .0 -24.36 1966 52.17 52.17 53.51 -1.28 .00 11.00 99.20 .0 -24.95 1967 76.94 76.94 55.03 21.86 .00 16.00 93.30 9.0 -19.25 1968 86 11 86 11 54 74 30 63 00 13 00 100 58 112.6 -17.06 1969 72 59 72 59 48 02 25 65 00 4 00 94 92 41.8 -14.32 1970 75 39 75 39 58.42 16 9O 00 14 DO 91 40 26.4 -16.91 1971 67 36 67 36 54.95 10 61 OO 10 OO 96 47 .7 -19.92 1972 96 60 96 60 55.74 40 48 OO 14 00 81 55 65.8 -15.12 1973 84 79 84 79 58.94 27 36 00 5 00 91 42 .0 -20.46 1974 82 27 82 27 54.53 27 64 OO 8 00 95 90 7.2 -19.33 1975 115 27 113 14 60.99 52 35 2 13 8 00 81 51 11.5 -19.27 1976 81 69 81 69 58.03 24 10 00 3 00 87 57 66.2 -20.57 1977 73 30 73 30 58.94 14 37 00 29 00 88 75 .2 -18.97 1978 60.17 60.17 59.03 -1 72 .00 12.00 91.97 .0 -24.06 1979 64.06 64.06 51.18 15.40 .00 12.00 105.00 39.7 -19.89 1980 80 98 80 98 55.77 24 64 00 18 00 90 85 45.2 -15.57 1981 86 51 86 51 58.81 28 03 00 12 00 86 48 .0 -18.40 1982 72 34 72 34 56.80 15 80 00 19 00 98 7D .0 -18.67 1983 81 64 81 64 63.89 17 93 00 7 00 80 50 9.1 -20.69 1984 76 58 76 58 60.96 13 57 00 14 00 87 28 .0 -22.00 1985 103 17 103 17 58.46 46 81 OO 15 00 83 32 .0 -19.79 1986 95 43 95 43 59.01 36 58 00 14 00 84 88 .2 -17.24 1987 74 27 74 27 65.71 8 45 00 20 00 92 38 .0 -27.73 1988 70 21 70 21 62.19 7 57 OO 31 OO 98 00 .0 -27.69 1989 82 14 82 14 55.94 25 55 OO 20 00 9O 53 6.0 -16.25 1990 84 02 84 02 60.71 23 20 00 11 OO 91 33 .0 -18.17 AVG 76.07 76.01 57.08 19.07 .06 14.15 92.09 15.7 -19.94 172 15: $130 - Subirrigation at 30-Ft Tile Spacings "tiiiitifiit‘kififi'i‘tittiit*ii‘tiifitit*tfit*‘titfittifiiii*ii***i*t***********iiit*tt*tt ---------- RUN STATISTICS ---------- time: 1/ 7/1993 9 0:43 input file: C:\DM40\INPUT40\SI3K12.LIS parameters: subirrigation run and yields calculated drain spacing - 914. cm drain depth a 102.0 cm YEAR RAINFALL INFILTR ET DRAIN RUNOFF DRYDAYS HORKDAYS SEN PUMP VOL 1958 51.00 51.00 52.88 3.68 .00 21.00 98.80 .0 -14.40 1959 95.83 95.83 62.40 32.13 .00 11.00 87.28 48.2 -17.70 1960 56.97 56.97 52.98 5.65 .00 15.00 98.00 .0 -19.24 1961 77.57 77.57 56.37 20.88 .00 13.00 93.25 .0 -16.60 1962 59.16 59.16 52.02 7.37 .00 24.00 87.33 1.8 -14.97 1963 45.92 45.92 55.41 -9.73 .00 7.00 96.30 .0 -23.81 1964 62.46 62.46 54.76 7.58 .00 14.00 95.17 .0 -15.46 1965 65.51 65.51 56.25 8.76 .00 22.00 99.03 .0 -22.42 1966 52.17 52.17 53.01 -.46 .00 11.00 99.20 .0 -22.36 1967 76.94 76.94 54.36 22.31 .00 19.00 93.30 5.4 ~16.14 1968 86.11 86.11 55.06 30.04 .00 13.00 100.58 68.7 -13.51 1969 72.59 72.59 47.92 26.37 .00 4.00 94.92 30.5 -10.50 1970 75.39 75.39 58.54 16.68 .00 14.00 91.40 26.0 -13.78 1971 67.36 67.36 54.77 10.29 .00 10.00 96.47 .D -16.45 1972 96.60 96.60 55.69 40.62 .00 14.00 81.55 53.5 -12.27 1973 84.79 84.79 58.58 27.72 .00 5.00 91.42 .0 -l7.76 1974 82.27 82.27 54.87 27.64 .00 7.00 95.76 24.5 -17.74 1975 115.27 113.35 60.99 52.44 1.92 8.00 81.14 .6 -15.70 1976 81.69 81.69 57.70 24.65 .00 3.00 87.13 8.1 -17.65 1977 73.30 73.30 58.93 14.30 .00 29.00 88 75 .0 -15.42 1978 60.17 60.17 58.10 -.87 .00 12.00 91.97 .D -22.08 1979 64.06 64.06 51.25 15.13 .00 12.00 105.00 2.1 -16.60 1980 80.98 80.98 55.87 24.63 .00 17.00 90.85 14.0 -12.39 1981 86.51 86.51 58.85 28.19 .00 12.00 86.23 .0 -I4.95 1982 72.34 72.34 56.80 15.64 .00 20.00 98.70 .0 -15.94 1983 81.64 81.64 64.14 17.81 .00 7.00 80.50 2.1 -l7.09 1984 76.58 76.58 61.09 12.94 .00 14.00 87.28 .0 ‘18.80 1985 103.17 103.17 58.57 47.23 .00 15.00 82.84 .0 ~16.93 1986 95 43 95 43 59.09 36 58 OO 14 OO 84 05 .O -13.83 1987 74 27 74 27 65.66 8 30 OO 20 00 92 38 .0 -25.53 1988 7D 21 70 21 61.99 7 70 OO 31 OO 98 00 .0 -25.41 1989 82 14 82 14 56.12 25 59 00 20 00 90 53 4.9 -12.07 1990 84 02 84 02 60.80 22 65 00 7 00 91 33 .0 -15.66 AVG 76 O7 76 01 57 02 19 11 06 14 09 92 01 8 8 -17.01 173 16: 5160 - Subirrigation at 60-Ft Tile Spacings *tiitti'i'*ttitti’i’fitttitti‘itit*‘kt‘l’fi*tfi‘ttttt*tti‘tifitti’iitttitittfi’ttiittt*tt*ttt ---------- RUN STATISTICS ---------- time: 1/ 7/1993 9 0:38 input file: C:\DM40\INPUT40\S16K12.LIS parameters: subirrigation run and yields calculated drain spacing - 1830. cm drain depth - 102.0 cm YEAR RAINFALL INFILTR ET DRAIN RUNOFF DRYDAYS HORKDAYS SEH PUMP VOL 1958 51.00 51.00 51.95 3.90 .00 21.00 98.80 .0 -7.83 1959 95.83 95.83 63.12 30.25 .00 10.00 87.12 .0 -9.31 1960 56.97 56.97 50.82 9.20 .00 13.00 98.00 .D -11.10 1961 77.57 77.57 57.54 19.07 .00 11.00 90.75 .0 -10.17 1962 59.16 59.16 49.60 10.22 .00 20.00 87.33 1.8 -7.27 1963 45.92 45.92 46.13 -.56 .00 29.00 96.30 .0 -9.89 1964 62.46 62.46 52.76 9.22 .00 13.00 95.17 .0 -8.06 1965 65.51 65.51 50.44 13.69 .00 30.00 100.03 .0 -11.03 1966 52.17 52.17 44.97 8.27 .00 30.00 99.20 .0 -10.36 1967 76.94 76.94 52.17 23.93 .00 22.00 90.83 .0 -8.54 1968 86.11 86.11 56.35 28.46 .00 13.00 100.58 43.0 -6.17 1969 72.59 72.59 47.92 27.61 .00 1.00 90.99 30.2 -4.24 1970 75.39 75.39 58.90 16.02 .00 14.00 91.40 .0 -7.37 1971 67.36 67.36 52.07 11.89 .00 10.00 96.47 .0 -IO.4O 1972 96.60 96.60 56.02 40.40 .00 11.00 74.15 1.3 -6.86 1973 84.79 84.79 54.69 31.64 .00 9.00 91.42 .D -9.38 1974 82.27 82.27 50.84 32.40 .00 12.00 92.83 72.1 -9.97 1975 115.27 114.89 61.22 53.25 .37 8.00 73.89 .0 -7.35 1976 81.69 81.69 54.74 28.46 .00 9.00 80.81 15.0 -8.85 1977 73.30 73.30 59.32 13.62 .00 27.00 88.75 .0 -9.38 1978 60.17 60.17 49.88 7.46 .00 41.00 91.97 .0 -10.61 1979 64.06 64.06 50.67 14.95 .00 12.00 105.00 .0 -9.38 1980 80.98 80.98 56.53 24.43 .00 17.00 90.85 .0 -7.00 1981 86.51 86.51 59.45 28.03 .00 7.00 79.76 .0 -9.02 1982 72 34 72 34 55.04 16 81 DO 20 DO 98 7O .0 -9.33 1983 81 64 81 64 61.44 20 76 00 8 00 80 50 .0 -9.13 1984 76 58 76 58 57.92 15 26 00 15 00 85 62 .0 -10.02 1985 103 17 103 17 59.45 47 39 00 15 00 80 50 .O -10.20 1986 95 43 94 65 59.79 35 25 78 14 00 76 83 .O -7.44 1987 74 27 74 27 57 67 15 64 DO 62 DO 92 38 .0, -7 38 1988 70 21 70 21 47.43 22 66 00 65 00 98 00 .0 -3.80 1989 82 14 82 14 56.92 25 17 OO 19 00 89 88 .0 -5.46 1990 84 02 84 02 58.64 23 89 00 8 00 90 25 .0 -9.14 AVG 76 O7 76 D4 54 62 21.47 03 18 67 90 46 5 O -8 53 174 BIBLIOGRAPHY Anderson, J. 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