Financial Decision Making for Irrigation Development
Producers are increasingly looking for tools and knowledge to make informed economic decisions regarding investments in irrigation infrastructure, purchasing water, understanding the cost-benefits of different crops, and managing financial risks related to water use and crop selection.
A three-part series of presentations steps through the key steps required to approach making decisions related to the viability of investing in irrigation, enterprise selections and some of the tools you can employ.
Part 1 – A whole of business approach
Part 2 – Enterprise level decision making
Part 3 – Bringing capital costs and enterprise margin together to assess the overall return.
This module is part of the Water Use Efficiency project delivered by Pinion Advisory - click below to view all modules
This fact sheet provides some insight into the application of partial budgeting and gross margin analysis for guiding decision making about investing in irrigation or enterprise level decision making after the introduction of irrigation.
The Department of Natural Resources and Environment have a number of easy-to-use tools to assist farmers and investors to consider the transition to new higher return enterprises and guide investment in irrigation. A suite of gross margin analysis tools for different enterprises are available, as well as an irrigation investment analysis tool and associated user guides https://nre.tas.gov.au/agriculture/investing-in-irrigation/farm-business-planning-tools
Rural Business Tasmania is available to support farming families, small regional businesses, and the rural community manage the demands and challenges facing primary and regional business. You can find more information about the financial counselling they offer on their website https://www.ruralbusinesstasmania.org.au/