Estimating the Incremental Gross Margins due to Irrigation Water in Southern Alberta

Figures & data

Table 1. Irrigated area of crops in sub-basins of southern Alberta 2008 (ha).

Crop	Bow	Oldman	Red Deer	S. Sask	Total
Barley	9767	29503	6859	8697	54825
CPS Wheat^1	989	900	920	146	2955
Durum	4714	15835	725	8847	30122
Hard Wheat	17122	23383	10026	11435	61967
Oats	531	714	487	319	2051
Soft Wheat	3214	8063	243	5119	16639
Alfalfa Hay	19273	38091	16032	10429	83824
Barley Silage	2692	20541	1908	2084	27226
Corn Silage	2379	10799	1638	2840	17655
Grass Hay	1489	4687	1498	1477	9151
Seeded Pasture	16427	15238	14521	5545	51730
Timothy Hay	802	5358	538	1225	7922
Canola	16667	29046	10097	16109	71919
Beans	3968	12307	830	7911	25015
Potatoes	3483	10377	1354	5058	20272
Sugar Beets	1724	6268	158	1977	10127
TOTAL	105240	231108	67833	89219	493400
Sources: Alberta Agriculture Food and Rural Development (AAFRD) (2005, 2006, 2007, 2008, 2009).
^1 The Canada Prairie Spring (CPS) class of wheat was established in 1985 as a lower protein alternative to hard wheat, the major class of wheat grown in Canada. The CPS class is known for its medium protein, medium kernel hardness and medium dough strength properties.

Table 2. Average yields, annual crop prices (in constant Canadian dollars) and percentage increase in prices, 20042008.

	Average Yield (t ha^1)		Crop Prices (Constant Canadian Dollars t^1)
Crops	Irrigated	Dry	2004	2005	2006	2007	2008	% Increase
Barley	4.8	2.1	148	119	115	169	214	44
CPS Wheat^1	4.5		224	203	191	214	369	64
Durum	5	1.8	244	214	189	228	510	109
Hard Wheat	4.3	1.9	224	203	191	214	369	64
Oats	3.9	2.2	149	140	151	198	233	56
Soft Wheat	5.1		224	203	191	214	369	64
Alfalfa Hay	12.4	2	71	64	70	78	90	27
Barley Silage	29.1		47	28	46	34	27	42
Corn Silage	43		47	28	46	34	27	42
Grass Hay	9.9		71	64	70	78	90	27
Seeded Pasture	9.9		71	128	94	114	111	57
Timothy	9.9		137	149	161	172	183	33
Canola	2.4	1	422	330	291	379	553	31
Beans	2.4		539	693	518	532	725	34
Potatoes	31.6		183	229	198	205	191	4
Sugar Beets	47.3		48	48	42	46	42	12
Feed Peas		1.6	158	101	117	181	187	18
Sources: Agriculture and Agri-Food Canada (AAFC) (2006, 2007, 2008, 2009); AAFC (20082009); Statistics Canada (2009); Agriculture Financial Services Corporation (AFSC) (20042008); AAFRD (20042007); AAFRD (2008); Cruickshank (2004).
^1 The Canada Prairie Spring (CPS) class of wheat was established in 1985 as a lower protein alternative to hard wheat, the major class of wheat grown in Canada. The CPS class is known for its medium protein, medium kernel hardness and medium dough strength properties.

Table 3. Total variable costs on irrigated land (constant Canadian dollars ha¹) and percentage increase 20042008.

Crops	2004	2005	2006	2007	2008	%
Barley	515	470	668	623	756	47
CPS Wheat^1	619	671	630	594	794	28
Durum	619	671	630	594	837	35
Hard Wheat	574	627	622	707	792	38
Oats	515	470	668	623	756	47
Soft Wheat	606	485	632	624	809	34
Alfalfa Hay	357	487	431	474	492	38
Barley Silage	359	288	387	539	674	88
Corn Silage	359	288	387	539	674	88
Grass Hay	357	487	431	474	492	38
Seeded Pasture	307	301	295	289	282	8
Timothy Hay	832	766	751	834	1087	31
Canola	718	703	689	648	894	24
Beans	964	931	655	802	1320	37
Potatoes	2970	2906	3334	4266	4438	49
Sugar Beets	1439	1496	1524	1583	1635	14
Sources: AAFRD (2004-2007); AAFRD (2008).
^1 The Canada Prairie Spring (CPS) class of wheat was established in 1985 as a lower protein alternative to hard wheat, the major class of wheat grown in Canada. The CPS class is known for its medium protein, medium kernel hardness and medium dough strength properties.

Table 4. Net diversions¹ of water (1000 m³) for the sub-basins, 20042008.

	Sub-Basins
Year	Bow	Oldman	Red Deer	S. Sask.
2004	333,518	573,941	244,453	298,822
2005	214,730	393,337	167,264	222,548
2006	268,163	542,554	184,011	277,974
2007	340,128	504,285	230,992	347,887
2008	318,142	591,643	220,768	310,956
Source: Bewer et al. (2010).
^1Net diversions of water are defined as gross diversions of water minus return flows.

Table 5. Assumed areas of dryland crops in 2008 (ha)¹.

Crops	Bow	Oldman	Red Deer	S. Sask	Total
Durum	3215	22999	2334	26232	54780
Hard Wheat	22804	74578	17728	42631	157740
Barley	43498	84511	21608	7791	157407
Oats	6306	8649	5722	4579	25256
Canola	9709	6774	7087	0	23570
Feed Peas	3468	6374	1880	3445	15167
Alfalfa Hay	16240	27223	11475	4542	59480
TOTAL	105240	231108	67833	89219	493400
^1 It was assumed that the cropping pattern that existed on adjacent dryland would be used on the irrigated area in the absence of irrigation. The total areas under irrigation in each of the sub-basins were apportioned to the seven major dryland crops on the basis of that cropping pattern.

Table 6. Total variable costs of crops on dryland Brown Chernozem Soil from 2004 to 2008 (constant Canadian dollars ha¹).

Crops	2004	2005	2006	2007	2008
Barley	252	203	278	239	422
Durum	193	243	242	270	387
Hard Wheat	306	300	293	302	346
Oats	283	277	293	263	292
Alfalfa	376	368	352	442	452
Canola	232	227	258	316	332
Feed Peas	113	111	66	109	171
Sources: AAFRD (20042007); AAFRD (2008).

Table 7. Gross margins, Bow River sub-basin (million constant Canadian dollars ha¹).

Crops	2004	2005	2006	2007	2008	Average
Barley	137	55	27	120	186	94
CPS Wheat^1	369	221	213	348	830	396
Durum	553	358	279	502	1,611	661
Hard Wheat	346	204	162	170	721	321
Oats	53	37	67	11	34	40
Soft Wheat	382	406	210	317	815	426
Alfalfa Hay	521	306	438	491	624	476
Barley Silage	1,005	519	951	443	112	606
Corn Silage	1,656	904	1,591	913	487	1,110
Grass Hay	344	146	263	296	399	290
Seeded Pasture	394	966	637	836	817	730
Timothy	528	712	844	868	725	735
Canola	336	121	36	299	489	256
Beans	276	663	537	422	348	449
Potatoes	2,321	3,720	2,379	1,649	1,082	2,230
Sugar Beets	714	658	353	485	251	492
Source: authors' calculations.
^1The Canada Prairie Spring (CPS) class of wheat was established in 1985 as a lower protein alternative to hard wheat, the major class of wheat grown in Canada. The CPS class is known for its medium protein, medium kernel hardness and medium dough strength properties.

Table 8. Incremental gross margins from irrigation by year and river sub-basin in southern Alberta (million constant Canadian dollars).

	River Sub-Basin	Gross Margins from Irrigated Production	Gross margins from Dry Land Production	Incremental Gross Margins
2004	Bow	53	6	47
	Oldman	152	36	116
	Red Deer	35	7	28
	S. Sask.	56	7	49
	TOTAL	296	56	240
2005	Bow	56	0	56
	Oldman	144	17	127
	Red Deer	35	3	32
	S. Sask.	59	3	56
	TOTAL	294	23	271
2006	Bow	46	1	45
	Oldman	138	14	124
	Red Deer	31	2	29
	S. Sask.	49	0	49
	TOTAL	264	17	247
2007	Bow	49	9	40
	Oldman	132	27	105
	Red Deer	33	6	27
	S. Sask.	50	4	46
	TOTAL	264	46	218
2008	Bow	67	14	53
	Oldman	157	52	105
	Red Deer	42	11	31
	S. Sask.	70	15	55
	TOTAL	336	92	244

Table 9. Gross margins and incremental gross margins from irrigation: $ Ha¹ hectare and $ 1000 m³ of net water diverted by year and river sub-basin.

		Gross Margins from Irrigation		Incremental Gross Margins
		$ Ha^1	$ 1000 m^3	$ Ha^1	$ 1000 m^3
2004	Bow	513	161	447	142
	Oldman	657	266	502	204
	Red Deer	493	144	395	115
	S. Sask.	636	189	546	164
	TOTAL	597	206	485	167
2005	Bow	532	262	532	263
	Oldman	623	365	550	322
	Red Deer	516	212	486	197
	S. Sask.	661	266	628	251
	TOTAL	598	295	551	273
2006	Bow	440	173	440	170
	Oldman	594	253	534	228
	Red Deer	464	166	419	153
	S. Sask.	578	176	578	176
	TOTAL	538	207	504	194
2007	Bow	475	143	388	118
	Oldman	565	261	446	207
	Red Deer	491	145	401	118
	S. Sask.	570	143	525	132
	TOTAL	534	185	441	153
2008	Bow	637	211	504	166
	Oldman	679	266	454	177
	Red Deer	619	192	457	140
	S. Sask.	785	226	616	178
	TOTAL	683	233	495	169
	AVERAGE	590	225	495	191

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