Solutions to agricultural water management

Brussels 13 April 2011Charlotte de Fraiture

The designations employed and the presentation of material in the map(s) do not imply the expression of any opinion whatsoever on the part of FAO concerning the legal or constitutional status of any country, territory or sea area, or concerning the delimitation of frontiers.

240 million in sub-Saharan Africa

Water Scarcity 2000

1 billion people live in areas where water is physically scarce1.5 billion people live in areas where access to water is a problem

Of which 62% in just three countries: South Africa, Madagascar and Sudan

irrigatedrainfed

Technologies for smallholder farmers e.g.

•Low cost water lifting devices (pumps)

•Low cost application technologies (drip)

•Technologies to capture and store rainwater in reservoirs, groundwater or root zone - (water harvesting)

•Soil and water conservation technologies

•Watershed management

AND

All the factors that enable them to be used e.g. policies, institutions, finance, training…

Technologies for smallholder farmers e.g.

•Low cost water lifting devices (pumps)

•Low cost application technologies (drip)

•Technologies to capture and store rainwater in reservoirs, groundwater or root zone - (water harvesting)

•Soil and water conservation technologies

•Watershed management

AND

All the factors that enable them to be used e.g. policies, institutions, finance, training…

Large untapped potential of smallholder private irrigation or Agricultural Water Management (AWM) – sometimes referred to as

the informal irrigation sector

• Initiated and financed by smallholder farmers themselves

• Owned and managed individually or in small informal groups

• Dynamic, market driven, not regulated

• Until recently limited recognition and support from governments, NGOs and donors

• Diversity of water sources: rivers, lakes, reservoirs and shallow groundwater

• Cash crops grown for local markets

• Initiated and financed by smallholder farmers themselves

• Owned and managed individually or in small informal groups

• Dynamic, market driven, not regulated

• Until recently limited recognition and support from governments, NGOs and donors

• Diversity of water sources: rivers, lakes, reservoirs and shallow groundwater

• Cash crops grown for local markets

Type – technology No. of farmers

Area under irrigation

Investment costs USD per ha

Main crop

Public irrigation schemes 11,000 7,185 ha 10,000 – 15,000 Rice

Small reservoirs 25,000 6,000 ha 6,000 – 15,000 Rice/vegetables

Motorized pumps 160,000 120,000 ha 500-1000 Vegetables

Buckets, watering cans 335,000 66,000 ha <25 Vegetables

Treadle pumps < 100 < 20 ha 500 Vegetables

Comparison of Ghana’s Formal and Smallholder Irrigation Sectors

The Smallholder AWM Context

•The smallholder private sector is vibrant and growing.

•In India more than 50% of the irrigated area receives its water from pumps and tubewells owned and managed by smallholders.

•In many African countries the smallholder private sector is more important than public irrigation in terms of number of farmers involved and the value of the production.

The Smallholder AWM Context

•The smallholder private sector is vibrant and growing.

•In India more than 50% of the irrigated area receives its water from pumps and tubewells owned and managed by smallholders.

•In many African countries the smallholder private sector is more important than public irrigation in terms of number of farmers involved and the value of the production.

Private Smallholder AWM: Increased access to water for additional income when farmers need it most

Ethiopia: 70% of farmers in 2 districts depend solely on rainfed staple crops, while 30% derive additional income from irrigating high value vegetable crops.Ghana: Small private irrigation provides additional income of US$200-$840 for smallholder farmers.Tanzania: Improved rainwater management can increase yields > 150%.50% of cash income is derived from dry season vegetablesMadhya Pradesh, India: Decentralized rainwater harvesting structures can increase incomes >70% by expanding dry season cropping and livestock options.SSA: most smallholders use manual methods (buckets, watering cans. Demand for affordable technologies is high; information and finance are main bottle necks

Lack of data on smallholder AWM to guide policy and investmentMany national agricultural statistics do not include information on area irrigated using small scale private AWM.Lack of choice and information about AWM type, quality, price, O&M for farmer decision-makingLimited stocks and/or single technology promotion often limits choice. Dealers in rural areas often lack the knowledge to advise farmers on what technology is most suitable for their situation, and formal extension services often concentrated on canal users.Lack of affordable financing for farmers and dealers This was a key constraint highlighted in the surveys. Some specific challenges include:

• Significant price variations for same make/model (up to 50% found in Zambia).

• Taxes on imported AWMs (>37% of motor pump price in Ethiopia)• High interest rates (in India, certain AWMs do not qualify for agricultural

(concessionary) loans, with financing only available through much higher commercial rates).

Investment in this sector can benefit millions of poor men and women through additional income and improved food security and nutrition.

The best strategy is to treat farmers as customers with information

to make well-informed decisions and offer a wide range of

alternatives (in terms of price, quality and financing), leaving the

technology choice to farmers (and the market).

Improve the value chain

Enhance knowledge

flow

Ensure technology

access for all

Rethink energy and

AWM

Adopt Watershed perspective

Solution pathways54321

Donors, government & private sector

Donors, government & private sector

Activity 2aReduce import barriers and taxes

Activity 2bDevelop registry of dealers

Activity 2cProvide credit to dealers to enlarge their stock

Activity 1aEmpower farmers with information to make informed decisions on technology choice

Activity 1bEnsure farmers’ access to horticulture and marketing information

Activity 3cPilot irrigation service providers concept

Activity 4aStimulate alternative energy sources

Activity 5aAssess possible environmental impacts at multiple scales

Activity 3aExplore and pilot financial instruments

Activity 5bRecognize and address resource conflicts

Activity 2dImprove market infrastructure & address middlemen monopoly

Activity 4bConsider AWM in electrification plans and policies

Improve the value chain

2Government & private sectorGovernment & private sector

Activity 2aReduce import barriers and taxes

Activity 2bDevelop registry of dealers

Activity 2cProvide credit to dealers to enlarge their stock

Activity 2dImprove market infrastructure & address middlemen monopoly

What needs fixing:•Import duties and taxes•No quality control, distorted price-quality relation•Very limited choice in local market

Improve the value chain

Improve the value chain

Enhance knowledge

flow

Ensure technology

access for all

Rethink energy and

AWM

Adopt Watershed perspective

Solution pathways54321

Donors, government & private sector

Donors, government & private sector

Activity 2aReduce import barriers and taxes

Activity 2bDevelop registry of dealers

Activity 2cProvide credit to dealers to enlarge their stock

Activity 1aEmpower farmers with information to make informed decisions on technology choice

Activity 1bEnsure farmers’ access to horticulture and marketing information

Activity 3cPilot irrigation service providers concept

Activity 4aStimulate alternative energy sources

Activity 5aAssess possible environmental impacts at multiple scales

Activity 3aExplore and pilot financial instruments

Activity 5bRecognize and address resource conflicts

Activity 2dImprove market infrastructure & address middlemen monopoly

Activity 4bConsider AWM in electrification plans and policies

Adopt watershed approach

5Government & donorsGovernment & donors

Activity 5aAssess & monitor possible environmental impacts

Activity 5bRecognize and address resource conflicts

Activity 5cMultiple interventions & multiple use approach

What needs fixing:•Environmental issues•Resource conflicts•No regulations

Adopt a watershed approach

Scaling Up—Tanzania: Prioritizing AWM for smallholders

1.Where does water matter for rural livelihoods ?2.Where are the rural people and how poor are they ?3.Is there enough water ?