Carbon-Financed Drip Irrigation: Contract Design Simulator

Evaluate cost-effectiveness of drip irrigation upgrades under different contract designs from both farmer and program implementer perspectives.

Contract & Program Parameters
Farm & Irrigation
Contract Design
Practice Changes Required
Risk Mitigation
Farmer NPV
--
USD per hectare
Implementer NPV
--
USD per hectare
Abatement Cost
--
USD per tCO2e
Farmer Payback Period
--
years
Break-Even Carbon Price
--
USD per tCO2e
Estimated Adoption Rate
--
of enrolled farmers
Total Program Impact (all farms, full contract)
--
tCO2e abated
--
m3 water saved
--
total program cost
Farmer Cumulative Net Benefit (per hectare)
Annual Cost & Revenue Breakdown (per hectare)
Year-by-Year Cashflow (per hectare, USD)
Sensitivity Analysis: Farmer NPV

Shows how farmer NPV changes when each parameter varies ±30% from current value, holding all others constant.

Contract Design Comparison

Compares 5, 10, and 20-year contracts across all three payment models at current carbon price.

Cost-Benefit Analysis by Practice Scenario
Values incremental to baseline · Payment model & parameters from controls above
Farmer NPV by Scenario & Payment Model

Grouped by practice scenario · Three payment models compared · Constant 2024 USD/ha

Life Cycle Cost Analysis: Program Implementer (Virridy / Netafim)
85% of baseline yield
Share of gross carbon revenue paid to farmer as ecosystem service payment. Farmer also gains water savings + yield improvement directly — those are not from the implementer.
Implementer margin on drip/SDI equipment sold upfront (Netafim distributor: 15–25%; direct sales: 20–30%)
Annual service contract (filter cleaning, emitter checks, pump maintenance). Netafim service model: $15–40/ha/yr
VMD0053 / VM0042 MRV Cost Model — Adana Cluster
Co-located farms sharing fixed MRV costs
Turkish field monitor: $35–50/day
Ankara soil lab: $30–45/sample
SGS/Bureau Veritas Turkey: $4,000–8,000 every 5 yrs
Implementer NPV ($/ha) by Contract Duration & Payment Model
Carbon Credits & Farmer Adoption by Practice Scenario & Duration
Implementer NPV vs. Abatement Cost Across All Scenarios
Profitability Pathway: Implementer NPV vs. Carbon Price
Implementation Strategy: Virridy & Netafim

Model Assumptions & Methodology

This interactive model implements a simplified cost-benefit analysis framework as outlined in the RQ2 research plan. Key assumptions are calibrated to Turkish agricultural conditions and literature values:

  • Drip irrigation cost: $1,500–3,500/ha installed (varies by crop type), with 15-year system lifespan
  • Water savings: 25–50% vs. baseline, depending on current irrigation method
  • Carbon sequestration: 0.3–1.2 tCO2e/ha/yr from irrigation efficiency + practice changes (IPCC ranges)
  • N2O reduction: 10–25% from optimized water and fertilizer management
  • Yield effects: 5–20% improvement under drip irrigation (crop-dependent)
  • MRV costs: $3–8/ha/yr for monitoring, reporting, and verification
  • Adoption model: Based on farmer NPV relative to opportunity cost, adjusted for risk perception and yield guarantee effects (per preliminary RQ1 findings)
  • All values in constant 2024 USD. Carbon credits per Verra VM0042 methodology.