Cost–Benefit Analysis of Sustainable Resource Management Practices for Enhancing Agricultural Productivity and Long-Term Economic Resilience

Abstract

The increasing pressure on agricultural resources, rising production costs, climate variability, and declining soil and water availability have intensified the need for economically viable and environmentally sustainable resource-management strategies. This study presents a comprehensive cost–benefit assessment of sustainable resource management practices for enhancing agricultural productivity, resource-use efficiency, farm profitability, and long-term economic resilience. A quantitative comparative framework was developed to evaluate conventional farming against an integrated sustainable management system incorporating precision irrigation, soil nutrient management, crop rotation, conservation practices, renewable-energy utilization, and optimized fertilizer application. Data were collected from 240 agricultural farms and evaluated over a three-year production period, covering major indicators related to crop yield, water consumption, fertilizer use, energy demand, production expenditure, farm income, and environmental performance. Economic feasibility was assessed using benefit–cost ratio (BCR), net present value (NPV), return on investment (ROI), and payback period. The results demonstrated substantial improvements following implementation of sustainable practices. Average crop productivity increased from 4.82 to 5.91 t/ha, representing a 22.6% improvement, while irrigation-water consumption declined by 27.4% and chemical fertilizer utilization decreased by 21.8%. Energy consumption was reduced by 18.6%, and overall annual production costs decreased from US$2,460 to US$2,118 per hectare, corresponding to a 13.9% reduction. Simultaneously, average net farm income increased from US$1,940 to US$2,684 per hectare, an improvement of 38.4%. Economic analysis produced a BCR of 1.87, an ROI of 31.6%, and a positive NPV of US$3,742 per hectare, with the initial sustainability investment recovered within 2.4 years. Soil resource-use efficiency improved by 19.7%, whereas overall water productivity increased by 34.5%. Furthermore, the farm economic resilience index increased from 0.68 to 0.84, indicating greater capacity to withstand resource-price and production shocks. These findings demonstrate that sustainable resource management can simultaneously reduce input dependency, improve agricultural productivity, strengthen profitability, and generate measurable long-term economic benefits. The proposed cost–benefit framework provides practical evidence for farmers, policymakers, and agricultural planners seeking economically feasible pathways toward resource-efficient and resilient agricultural production systems.

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