How do I determine my annual irrigation costs?

Annual irrigation cost can be divided into two categories: annual cost of ownership and annual cost of operation.

The annual cost of ownership procedure is represented by the DIRTI (Depreciation, Interest, Repairs, Taxes, and Insurance) formula that spreads the actual cost of ownership of an equipment investment over its usable lifespan or investment period. This formula will provide you with the annual cost of the original investment in equipment and improvements.

Annual operating cost will include an estimate of energy cost and labor attributable to the average operation of the equipment. A greater number of small applications will favor systems that have low labor costs, where a smaller number of large applications would favor system with high labor and low investment attributes. Systems with low energy cost primarily for pumping are favored by higher total annual use where low initial cost often compensate for higher energy cost if a low total volume of water is applied annually.

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