Economic Assessment of Irrigation Systems for Oil Palm Plantations at the Colombian Northern Zone
Water deficit is among the most limiting factors for obtaining high yields in agricultural crops. Along with this, water is becoming a scarce resource due to climate change, which implies that whenever a grower decides to irrigate their crops, the efficiency of the system for water usage must be a factor to be considered. This paper presents the results of a research undertaken in order to assess two irrigation systems used at oil palm plantations in Colombia from an economic perspective, they were: sprinklers irrigation (SI) and, flood irrigation (FI). A scenario in which the grower does not use any irrigation system (WI) was also considered. Regarding the economic assessment methods we used: internal rate of return (IRR), unit cost, net income, net present value (NPV), and payback period (PB). Results indicate that at a price of cop 365.000 per ton of FFB, establishing oil palm crops with sprinklers irrigation systems is the best alternative from an economic angle. With this method, the IRR is 4% higher at SI compared to FI, and 8% higher compared to WI. The unit cost is 7% lower at SI compared to FI, and 9% lower compared to WI. Besides, net income is 20% higher at SI than at FI, and 63% higher compared to WI. Finally, the payback period comes earlier at SI,compared to FI and WI. This study also provides results for sensitivity analyses carried out for the price of water and for the price paid for FFB
| Main Authors: | , , , |
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| Format: | Digital revista |
| Language: | spa |
| Published: |
Fedepalma
2018
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| Online Access: | https://publicaciones.fedepalma.org/index.php/palmas/article/view/12401 |
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