Diversification is a strategy used by some farms to manage risks associated with the farm business. The ability of the firm to diversify can be enhanced through supplemental irrigation. An investment in irrigation equipment would be expected to not only permit the producer to stabilize yields, but also allow a wider range of production alternatives. The Motad model is used here to estimate optimal farm plans for different expected income levels for irrigated and non-irrigated situations. Results of the study indicate that the addition of supplemental irrigation provides the potential for selecting cropping combinations that stabilize income without reducing expected returns.