The study demonstrates the methodological approach to the determination of the upper limit of land value and analyzes the influence of the mode of determination of the economic effect of land use and the level of ground waters on its amount. A model was developed based on the business results of an agricultural enterprise involved in a field crop/livestock production over the past few years, which had planned to erect a drainage system in order to manage the excess of water on the available land area.

The objective of the study was to determine the limits of economic justification for irrigation system capacity use. The first step was focused on determining the lower limit of capacity use by comparing the economic effects of irrigation with the costs of the irrigation system use.