Here is the evaluation abstract of a central Pivot irrigation System (CPIS), made in Brazil from a technical and economic point of view. The profitability of the system was simulated using real data obtained from a farm located in Chile, projected over a time horizon of ten years.
Internal Rates of Return were estimated on two crops that frequently use CPIS maize for seed and maize-for grain, assuming a decreasing capital allocation and an increasing governmental subsidy, in the terms provided by Chilean Law 18.450.
From a technical standpoint, results showed that the operation parameters agreed with the specifications of the manufacturer. The Hermann and Hein Coefficient of Uniformity obtained was 86%, classifying the area irrigated as «well watered».
The Distribution Uniformity parameter obtained was 79%, an adequate result for the crop and soil conditions of the test.
The Internal Rate of Return obtained for maize for-seed varied from 23% to 103% for the range of 100% to 25% of self-financing.
For the case of maize-for-grain the investment is profitable only with a maximum of 70% of capital allocation from the part of the farmer, implying that the minimum subsidy required from the part of the State is 30%.