Water is the main limiting factor in agricultural production as well as a scarce resource that needs to be optimized. The measurement of soil water with sensors is an efficient way for optimal irrigation management. However, commercial sensors are still too expensive for most farmers. This paper presents the design, development and calibration of a new capacitive low-cost soil moisture sensor that incorporates SDI-12 communication, allowing one to select the calibration equation for different soils. The sensor was calibrated in three different soils and its variability and accuracy were evaluated. Lower but cost-compensated accuracy was observed in comparing it with commercial sensors. Field tests have demonstrated the temperature influence on the sensor and its capability to efficiently detect irrigation and rainfall events.