ABSTRACT

Stochastic weather events can impact the profitability and risk of wild blueberry (Vacciniurn cingustifolium Ait.) production in humid regions such as Maine. The use of irrigation for agricultural crops has different implications depending on the amount of rainfall needed by the crop and average annual rainfall. In arid areas, where irrigation is essential, the issue devolves to a comparison between yields with, and without, irrigation. In temperate regions, where in some years there is enough rainfall to meet crop needs, the cost analysis is contingent upon usage. In these regions, the range of use for supplemental irrigation can be from “not at all” in wet years to “frequently” in dry years and as such, the economic costs of an irrigation system are highly variable from year to year. Epperson et al. (1992) found that irrigation is needed in much of the humid regions of the United States because uneven rainfall creates uncertain net returns and lower overall profits. It has also been identified as an important risk management strategy (Boggess and Ritchies, 1988; Hatch et al., 1991; Vandeveer et al., 1989).