1. Why it Matters for Best Outcomes

Water is essential, but accessing and using it is rarely free. Farmers spend money on wells, boreholes, pipelines, pumps, sprinklers, drip systems, and fuel or electricity to run them. These costs directly affect farm profitability and long-term sustainability. Even if water is physically available, if the costs of bringing it to the field are too high, the farm’s resource endowment weakens.

2. When Water Use Costs are Favorable

If a farm has low-cost, reliable systems (gravity-fed canal, farm pond, or shallow open well), irrigation becomes economical. Solar pumps, community lift irrigation, or efficient drip/sprinkler systems can also reduce recurring costs. In such cases, water availability translates into higher crop diversity, greater stability, and more profitability.

3. When Water Use Costs are Unfavorable

High costs for drilling deep tube wells, frequent pump repairs, diesel/electricity bills, or maintenance of irrigation equipment can eat away at profits. In some cases, the cost of water per acre may exceed the net returns from crops, pushing farmers into debt. High costs also discourage adoption of water-intensive high-value crops, limiting farm growth opportunities.