The horticulture industry is facing limited water resources and public pressure to reduce non-point source pollution. In some circumstances, recapturing and recycling of irrigation water in horticultural nurseries can generate significant savings relative to the costs of alternative water sources and potentially reduce non-point source pollution. However, obtaining these savings may also incur substantial risk and capital cost outlays. Disease risk may increase in nurseries that implement recapturing and recycling if recycled water is not properly treated. These added costs must be compared with costs of alternative sources of water, such as municipal or well water. This study employed partial budgeting to compare irrigation water being extended or supplemented through recapturing and recycling against the most feasible alternative. On-site visits were conducted to obtain information for partial budgets and to clarify the reasoning of nurseries choosing to recycle irrigation water. The partial budgets were supplemented with sensitivity analysis with regard to the extraction cost of water and opportunity cost of land used for recapture of water. Six of eight nurseries obtained water from recapturing and recycling at a lower cost compared to a feasible alternative source. The regrading of land for maximum recapture, opportunity cost of land dedicated to a recapture pond, and the cost of municipal water were parameters that were critical to the irrigation choice. Sensitivity analysis indicated that water price and land cost had little effect on the least cost option. Irrigation recycling could be incentivized to motivate further water conservation within the horticulture industry. / Master of Science

Cover crop use provides a myriad of benefits to soil health. Despite strong agronomic evidence of the benefits of using cover crops, farmers have been slow to adopt cover crop systems. Surveys show that this is due to a lack of understanding on how cover crop use will impact the farm, and limited economic analysis on the effects of cover crop use on the farm. <div> In this thesis, a variable-rate nitrogen study was analyzed to determine the relationship between applied nitrogen fertilizer and corn yields, and how a cover crop treatment impacts that relationship. Data were obtained from a case farm in Central Indiana. Production information was then translated into a partial budget to see how the use of the different cover crop treatments impacted net return per acre for corn production on the farm. Net returns were analyzed using both historical corn and nitrogen prices and stochastic modelling.</div><div> Results showed that the final impact on farm net return per acre associated with adoption of a cover crop system varies among cover crop species. Implementing annual rye resulted in a negative change to net return; while cereal rye and an oats and radish blend resulted in a positive change to net return. When additional benefits of cover crop use; such as drought tolerance, carbon content, and erosion reduction; are included, all three cover crop species resulted in a substantial increase in net return. This information will be of interest to farmers as a source to draw upon when making decisions regarding their own farms. Further research is needed to fully understand the relationship between cover crop use and farm profitability, particularly for farms at the early stages of adoption.</div>