Economic Feasibility Study for Implementing a Maize Cultivation Project in Iraq Using a Drip Irrigation System (2030–2040)

Abstract

Iraq has vast agricultural areas, compared to the limited water. to solve this problem, the idea of using a drip irrigation system to grow corn was proposed.

This method is used in a number of countries around the world, but its use in Iraq is for growing vegetables, fruit trees, and windbreaks. Some experiments are currently being conducted (the results have not yet been proved.)

The project aims to achieve 90% irrigation efficiency and save more than 25% of water by adopting drip irrigation instead of surface irrigation to confront water shortages.

The proposed project area and productivity were determined at 285,500 dunums and 1,245.7 kg / dunum, respectively, based on previously achieved areas and productivity for the period 2016-2023. The productivity of the drip irrigation project was determined at 2,000 kg / dunum, based on previously conducted research and experiments.

The project duration was set at 10 years, starting from the base year 2030. Annually, 10% of the proposed area (285,500 dunums) of corn will be converted from surface irrigation to drip irrigation

The statistical criteria used were net present value, cost-benefit ratio and (ROI) Return on investment, and for each criterion, special coefficients of 8% and 10% were used.

Statistical results showed that drip irrigation was superior in terms of net present value and return on investment at a discount rate of 10%, while other statistical criteria showed similar results between surface irrigation and drip irrigation. Although the total cost of cultivating a dunam of corn with drip irrigation is 25% higher than the cost of surface irrigation, drip irrigation will still be the preferred option, as it saves more than 25% of water compared to surface irrigation, which is the primary goal.