Installing a new land drainage system involves labour and investment — but is it worth the money? Here’s a helpful guide to help you understand your potential return on investment.
Contents
How to calculate your return on investment from land drainage
To calculate your potential ROI from land drainage, first understand how it will impact your crop sales, operational efficiency, and long-term land value. Next, calculate your installation costs — including materials, labour, and machinery. Once you have both figures, you can estimate your overall return.
What are the cost gains and savings from land drainage?
Here are the key financial benefits to consider when assessing the value of a new drainage system:
1. Increase yields by 25–35%
You can invest heavily in modern farming technology, but it’s ineffective if your soil structure is poor. By improving your drainage, you can increase your yields by an average of 25–35%. Apply this improvement over a 5-, 10-, 20-, or 30-year period to estimate how quickly your investment will pay off.
As an example, here’s a comparison between poorly drained and well-drained land:
-
Worst-case scenario (poor drainage):
- Yield: 2.5 tonnes per acre of feed wheat at £100/tonne
- Gross revenue: £250/acre (no CAP support)
-
Best-case scenario (good drainage):
- Yield: 5 tonnes of milling-quality wheat at £120/tonne (£20 quality premium)
- Gross revenue: £600/acre (no CAP support)
The difference of £350/acre can translate to £3 million in extra profit over 30 years on a 1,000-acre farm — even after factoring in increased input costs for high-yield crops.
2. Improve land value
Over the past 15 years, land prices have risen significantly. The cost of installing drainage typically equates to about 1/12th the value of replacing the same land. Well-drained land is also more attractive to buyers, further increasing resale value.
3. Reduce fuel bills and machinery wear
Machinery works much harder in wet soil, increasing fuel use and wear. By improving drainage, you reduce soil compaction, enhance traction, and lower running costs. Over time, this means less maintenance and a longer equipment lifespan.
How much will it cost to install land drainage?
Costs can vary depending on land type, system design, and contractor expertise. Installing an effective drainage scheme requires specialist equipment and experience, so we recommend hiring a contractor who specialises in this field. To learn more about the installation process, read our detailed guide here.
How can Cotterills help?
Our background is in farming — our MD’s family have farmed for generations — so we understand your needs. Cotterills are specialists in land drainage and supply a wide range of competitively priced products, including land drainage coil, twinwall pipe, and large-diameter structured pipe.
Our team of specialists can provide expert advice on the best solution for your farm. Call us today on 0121 351 3230.
Alternatively, fill out our enquiry form:
