Agriculture Reference
In-Depth Information
TABLE 6
(Continued)
Cost of irrigation system
Life
span
L-H
bubbler
Gated
pipes
Items
Drip
Year
LE per feddan
Gated pipes
10
550
PE tubes (bubblers) 8 mm
5
40
Fertigation unit
10
100
100
100
Valves and controllers
10
200
120
30
Total capital costs LE/feddan
2050
1660
1330
Fed is abbreviation for feddan.
One feddan (non-SI Units of area in Egypt) = 1.038 acres = 0.42 hectare (ha) = 4200 m 2 . 2.47 acres =
1 ha.
One LE (Egyptian currency) = 0.1437 $US or one $US = 6.94 LE.
**EXAMPLE 1. Convert 800 LE per feddan to US$/acre and US$/ha.
800 (LE/feddan) = 800 (LE)(0.1437 US$/LE)(1/feddan)(1 feddan/1.038 acre)
= 110.8 US$ per acre.
= 110.8 US$ (1/acre)(2.47 acres/1 ha) = 273.6 US$ per ha.
The annual cost for each irrigation system consisted of fi xed cost and the operating
cost [83]. The annual fi xed costs were calculated using Eq. (13). Depreciation cost dif-
fers from one system to another, according to the life span of the different components
of each system. Depreciation was calculated with Eq. (14). Taxes and overhead ratios
were assumed as 1.5-2.0% of the initial cost. Operating costs were calculated with
Eq. (15).
F.C = D + I + T1
(13)
D = (I.C. - Sv)/ E
(14)
O.C. = L.C + E.C + (R&M)
(15)
where: F.C.= annual fixed cost, LE/year; D = depreciation rate, LE/year; I = interest,
LE/year = [(I.C. + Sv) × (I.R.)] ÷ [2]; T1 = taxes and overhead ratio, LE/year; I.C. =
initial cost of irrigation system, LE; Sv = salvage value after depreciation, LE; E =
expectancy life, year; I.R. = interest rate per year,%; O.C. = annual operating costs,
LE/year; L.C = labor costs, LE/year; E.C = energy costs, LE/year; and R&M = repair
and maintenance costs, LE/year.
Repair and maintenance cost was assumed as 2, 3, and 0.5% of the initial cost
 
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