An indication of that ability can be expressed to your credit supplier in the form of farm records, profit and loss statements, net worth statements, and cash flow statements. In addition to these records, you should be prepared to supply your credit agency with an estimation of the potential payback capacity of the irrigation investment. This is where the crop budgets and total enterprise analysis in step 4 would be very helpful. Crops selected to be irrigated must exhibit an economic yield increase to irrigation. This means the average yearly yield increase over dryland production must be great enough to pay for the investment in irrigation and increased production costs as well as some additional profit.
Irrigation provides an environment conducive to increased plant production for long season crops.
However, it also provides a favorable environment for disease, insects and weeds. The irrigator must know how to manage the irrigation system and crop rotations to minimize potential problems. By scouting the field on a regular basis and using Integrated Pest Management methods and Best Management Practices the irrigator should be able to manage the irrigation system profitably. The irrigator must be aware of agronomic practices that favor irrigation and are crop specific, such as proper row widths, appropriate plant populations, higher fertilizer requirements, split applications of fertilizer to minimize leaching potential and hybrid selection. Irrigated crop water management is extremely important to prevent yield loss due to moisture stress, minimize pumping costs and prevent leaching of nutrients.