Producers who have already paid fixed costs such as those on machinery, buildings, and land are committed to owning these resources for the forthcoming period. The producer incurs some fixed costs associated with these resources regardless of whether any production occurs. Fixed costs include depreciation and insurance on machinery, equipment and buildings, interest on machines, land, equipment, and buildings and land taxes. Many producers sooner or later confront the problem of failing to recover all their costs for an irrigation enterprise.