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Tools of the trade: Evaluating returns on tile drainage

October 11, 2023  By Gary Schnitkey, Nick Paulson, and Jim Baltz | Department of Agricultural and Consumer Economics, University of Illinois | Bob Rhea | Illinois FBFM Association | Carl Zulauf

Tile drainage improves yields on most installations by reducing moisture from fields. Herein, we present a methodology for determining the yearly break-even benefit required to cover the installation investment in tile. This methodology is based on the payment function in Microsoft Excel. For example, a $1,000 per acre installation investment requires a yearly break-even benefit of $81.74 per acre, given an 8% interest rate and a 50-year life. Higher interest rates increase yearly benefits to recover the investment. | READ MORE

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