Cost and return budgets for five farms in 1985 comparing drip irrigated cotton versus cotton irrigated with existing technologies revealed the following about drip irrigated cotton: yields increased on average 119%; Not Returns After Variable Costs and System Depreciation and After All Costs increased $138.00 and $63.00 per acre respectively. A three year analysis (1985-1987) for the two most successful farms in 1985 resulted in yield increases of 500 lbs and 300 lbs respectively, average increases in Net Returns After Variable Costs and After All Costs of $273 and 0115 and $79 and $24 per acre respectively, an average Return on Investment of 126% and 113% and initial system investment 'pay back' of 78% and greater than 200% at the and of year three.