Sustainable Management of Water Resources in …

1 Sustainable Management of Water Resources in agriculture Sustainable Management of Water Resources in agriculture ORGANISATION FOR ECONOMIC CO-OPERATION. AND DEVELOPMENT. The OECD is a unique forum where the governments of 30 democracies work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.

2 The Commission of the European Communities takes part in the work of the OECD. OECD Publishing disseminates widely the results of the Organisation's statistics gathering and research on economic, social and environmental issues, as well as the conventions, guidelines and standards agreed by its members. This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. ISBN 978-92-64-08345-5 (print). ISBN 978-92-64-08357-8 (PDF). DOI Also available in French: Gestion durable des ressources en eau dans le secteur agricole Photo credits: Cover: Taro Yamada/Corbis, Natphotos/ Digital Vision/Getty Images, , Corrigenda to OECD publications may be found on line at: OECD 2010.

3 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC). at or the Centre fran ais d'exploitation du droit de copie (CFC) at FOREWORD 3. Foreword This report explores the economic, environmental and policy dimensions and linkages related to the Management of Water Resources , floods and droughts in agriculture .

4 While the linkages between agriculture and Water quality are touched on they are the focus of another study to be completed in 2011. The report was carried out under the auspices of the OECD Joint Working Party on agriculture and the Environment of the Committee for agriculture and the Environment Policy Committee. The material in the report also contributed to the 2007-08 OECD. Horizontal Programme on Water , the results of which were presented in Managing Water for All: An OECD Perspective on Pricing and Financing at the World Water Forum in Istanbul in March 2009. Information on Water resource Management in agriculture across OECD countries was collected through a questionnaire and the analysis was also enriched by a set of background reports on: Agricultural Water pricing in Australia, European Union, Japan, Korea, Mexico, Turkey and the United States.

5 Financing Water Management and infrastructure related to agriculture . Policy issues concerning agriculture 's role in flood adaptation and mitigation. Experiences and lessons from the Australian Water reform programme. Economic analysis of the virtual Water and Water footprint concepts in relation to the agri-food sector. Both the detailed material from the questionnaire and the background reports can be downloaded from the OECD website at and The OECD wishes to acknowledge the contribution of OECD countries in the preparation of this report and for additional financing generously provided by the Spanish government. The OECD would also like to thank the consultants for the background reports mentioned above: Erol Cakmak (University of Ankara, Turkey); Javier Calatrava (University of Cartagena, Spain); Alberto Garrido University of Madrid, Spain).

6 Tim Hess (Cranfield University, United Kingdom); Joe Morris (Cranfield University, United Kingdom); James Nickum (Asian Water and Resources Institute, Tokyo, Japan);. Chisa Ogura (Asian Water and Resources Institute, Tokyo, Japan); Seamus Parker (Council of Mayors, South East Queensland, Australia); Helena Posthumus (Cranfield University, United Kingdom); Robert Speed (freelance consultant, Australia);. Frank Ward (New Mexico State University, United States); Dennis Wichelns (Hanover College, United States); and Mike Young (University of Adelaide, Australia). Sustainable Management OF Water Resources IN agriculture OECD 2010. 4 FOREWORD. The principal author of this report was Kevin Parris, Senior Economist in the Agricultural Policies and Environment Division of the Trade and agriculture Directorate, under the overall guidance of Wilfrid Legg, Head of the Agricultural Policies and Environment Division.

7 Many colleagues from the Trade and agriculture Directorate, Environment Directorate and Directorate for Science, Technology and Industry contributed to the preparation of the report, in particular Jacqueline Allan, Fran oise B nicourt, Theresa Poincet, V ronique de Saint-Martin, Louise Schets and Noura Takrouri-Jolly. Sustainable Management OF Water Resources IN agriculture OECD 2010. TABLE OF CONTENTS 5. Table of Contents Executive Summary ..9. Summary and Chapter 1. Setting the Scene: Hydrology and Economics of Water resource Management in Hydrology ..29. Chapter 2. Recent Trends and Outlook for Water Resources in Trends in Water resource use and Management since 1990 ..43. Outlook for Water Resources in agriculture ..52. Chapter 3. OECD Countries' Policy Policy overview and objectives.

8 67. Agricultural and agri-environmental policies ..68. Farm Management and technology measures ..77. Water policies and agriculture ..80. Climate change and flood and drought risk Management ..99. Knowledge and assessment of Water resource Management in agriculture ..110. Bibliography ..113. Sustainable Management OF Water Resources IN agriculture OECD 2010. 6 TABLE OF CONTENTS. Tables Table A selection of global projections for irrigation Water withdrawals ..56. Table Key conclusions from the 2007 IPCC 4th Assessment Report on Climate Change and Water ..60. Table Summary of key 2007 IPCC 4th Assessment conclusions by warming increments for agriculture ..62. Table Regional impacts of global annual temperature change as they relate to Water and agriculture relative to 1980-99 ( C) ..63. Table Summary of OECD countries budgetary expenditure on irrigation, drainage and aquatic ecosystem services.

9 72. Table Operation and Maintenance costs and recovery rates for irrigation Water services in Table Average irrigated association charge on farmers by region in Korea, 2005 ..90. Table Cost recovery rates for irrigation Water in Australia ..93. Table Water taxes for irrigation charged by the Agences de l'Eau in France ..93. Figures Figure Diverse options for agricultural Water Management ..30. Figure Typology of agricultural Water resource Management systems across OECD countries ..32. Figure Defining uses of Figure General principles for cost and value of Water ..35. Figure Agricultural Water demand curve ..40. Figure Agricultural Water use ..45. Figure Irrigated area, irrigation Water use and irrigation Water application rates ..47. Figure Share of irrigated land area using different irrigation technology systems: Figure Share of agricultural groundwater use in total groundwater use, and total groundwater use in total Water use: 2002.

10 50. Figure People living in areas of Water stress ..53. Figure Projected total and agricultural Water withdrawals in OECD countries: 2000-50 ..54. Figure Projected total and agricultural Water withdrawals in selected non-OECD. countries/regions: 2000-50 ..54. Figure Projected world Water withdrawals by sector: 2000-2050 ..55. Figure Projected share of agriculture in total Water withdrawals: 2000-2050 ..55. Figure Full supply cost recovery for surface Water delivered on-farm across OECD countries, 2008 ..91. Figure Recovery rates for Operation and Maintenance costs in irrigated areas in Mexico ..92. Figure Average irrigation O&M charges, Figure Sources pathways receptors model applied to flood risk ..102. Figure Impacts of selected land Management practices on flood generation ..103. Figure Policies regarding flood risk Management and agriculture in OECD Figure Policies regarding drought risk Management and agriculture in OECD countries.