Efficient water and resource management is crucial in semi-arid agriculture, where irrigation practices strongly affect productivity, profitability, and environmental outcomes. This study applied the Material Flow Cost Accounting (MFCA) framework to compare potato production under sprinkler and furrow irrigation in Iran. MFCA has rarely been applied to potato production, and the hidden economic, energy, and environmental costs of different irrigation systems in semi-arid regions remain largely unexplored. Results showed that sprinkler irrigation required less water (9110 m3 ha-1 vs. 13587 m3 ha-1) and fertilizers (300 vs. 350 kg N ha-1), while achieving a higher yield (40000 vs. 27500 kg ha-1). Economically, sprinkler irrigation reduced production costs ($1304.2 ha-1 vs. $1531.2 ha-1), increased gross incomes ($8088 vs. $6196 ha-1), and improved the benefit-to-cost ratio (7.7 vs. 5.05). Hidden costs were also lower ($1392 ha-1 vs. $2227 ha-1). Energy analysis further confirmed the efficiency of sprinkler systems, with lower input energy (102,743 vs. 131,990 MJ ha-1), higher positive output energy (144000 vs. 99000 MJ ha-1), and a positive net energy balance (11581 vs. –82628 MJ ha-1). MFCA-adjusted Energy Ratio (1.11 vs. 0.37), energy productivity (0.39 vs. 0.21 kg MJ-1), and specific energy (2.57 vs. 4.80 MJ kg-1) all favored sprinkler irrigation. Although limited to farm-level processes in one region, the findings demonstrate that sprinkler irrigation provides significant environmental, economic, and energy benefits, offering a sustainable pathway for potato production in semi-arid areas. Overall, the MFCA framework effectively revealed internal inefficiencies, quantified recoverable loss costs, and provided complementary insight beyond conventional economic and energy metrics. The findings indicate that while sprinkler irrigation improves productivity and resource-use efficiency, its adoption remains sensitive to financing structures. These results underscore the need for supportive credit mechanisms and targeted subsidies to facilitate efficient irrigation transitions and maximize both economic and environmental benefits.
