...So what makes a good or poor producing well?
Whenever the discussion turns to wells, I always like to start an analysis from the back of the water supply issue.
We have a 4 bedroom house and the county required a 350 gallon per
day septic system. The county standards are that we could support 8 people with that septic system. This is a flow rate of just under 0.25 gallons per minute.
We only have two of us, and our actual water use, with no attempt at conservation is about 175 gallons per day, which would be 0.125 gallons per minute.
If you are not going to irrigate, I would put the minimum acceptable flow rate at 0.12 to 0.25 gpm for a residence. Now with that low of a well flow you will need a cistern to provide some temporary reserve capacity.
Our well is about 2.5 gpm, we irrigate about 1/4 acre, and we never have any issue with water quantity. We flush toilets, take a shower, and run the washing machine, and irrigate at the same time and have never even notice any flow restriction. The standard for the well test is to pump at full capacity for 1 hour and then measure sustained flow after that. We get around 7 or 8 gpm for the first part of that hour, and then the flow drop off to a sustained 2.5 gpm.
I do have a storage tank for irrigation, which is by far the biggest user, and restrict the input to 1 gpm and have zones to limit the total flow to irrigation from the tank to ~ 2.5 gpm. The cistern is about 500 gallons, and we only irrigate for about 1 hour several times per day, which allows the tank time to fill.
I had heard the 5 gpm rule of thumb before we started and paid dearly for it. The first well we drilled, in search of 5 gpm was ~ 700' deep and still only produced 2.5 gpm. The pump failed at an age of about 8 years because the bore collapsed due to poor strata at that depth. The majority of the flow came in at about 250 feet. We had to drill a second well which I stopped at ~ the 250 foot level, and we are much happier with this well.
FHA and most banks have gotten away from the old 5 gpm "standard", and will now loan on almost any reasonable well.
If your well produces good-tasting water it is vastly more than sufficient at 20 gpm. That is about 100 times more water than you really need.