Page 54 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

the application efficiency of the irrigation system. This efficiency varies

due to the intricate design, maintenance, and management of the
distribution system as described in the previous section. Other factors

such as soil, stage of crop development, time of the year, and climatic
conditions also affect the application efficiency. The selection of a

system depends on availability and value of water for irrigation. Thus,

economic factors influence the irrigation efficiency obtained in a specific
production system. In the light of the prevailing climatic conditions in

the region and previous research on the subject in this area, the
application efficiency percentages and indices have been calculated for

these systems.

Methodology
Three cost components are analyzed for each of the irrigation

systems. First, the initial investment costs for the well, pump, engine
and distribution system are examined (New, 2009). Costs of various

components of the irrigation systems were obtained from the irrigation
equipment dealers during the summer of 2009. Additional cost

information was obtained from suggested retail price lists provided by

different manufacturers of irrigation equipment. Second, the annual
fixed costs associated with depreciation, interest, taxes and insurance are

analyzed. Third, the variable costs of fuel, maintenance, lubrication,
repairs (LMR) and labor are determined (Amosson, 2009).

Two scenarios were developed to estimate the potential water
savings from adopting more efficient irrigation in the Panhandle Water

Planning Area (PWPA). The planted irrigated crop acres for each of the

counties included in PWPA were based on Texas Agricultural Statistics

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