A study of the economic and managerial effects of automatic irrigation in the Mid-Canterbury District of New Zealand

Abstract

A summer climate of low humidity, warm winds and high temperatures creates the soil moisture conditions that are sufficient to sustain active plant growth over the summer period in Canterbury. Irrigation was installed to alleviate the summer drought and boost normal production. The Government installed the first scheme the Ashburton-Lyndhurst Irrigation Scheme, in 1935, during a period when cheap labour was available. Since that day, two further schemes have been developed: the Mayfield-Hinds Scheme in 1948 and the Valetta Farm Settlement Scheme in 1953. Farmers contracted to buy water from the Government which was initially offered at very low rates. These prices were to be revised at the end of the 1962/63 season. Substantial increased were expected as the ruling charges were insufficient to meet the operation and maintenance costs of the scheme. In 1962, the Irrigation Development Association requested the Farm Management Department of Lincoln College to compare the profitability and productivity of irrigated and dryland farms within the Ashburton-Lyndhurst scheme. The survey concluded that: "Under present technology, irrigation is not conferring sufficient gains in productivity to offset the additional investment involved and the higher costs associated witn running an irrigated farm." This was the first critical look at progress made in Canterbury by irrigation farmers. Part I of the study is an appraisal of automatic irrigation. Part II is an investment analysis study. Cost-Benefit techniques are used to explore the profitability of irrigation development in two case study plans.