Solutions to Agricultural Water Management

1. Solutions to agricultural water management Brussels 13 April 2011 Charlotte de Fraiture

2. 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

3. Water Scarcity 2000 1 billion people live in areas where water is physically scarce 1.5 billion people live in areas where access to water is a problem

4. rainfed irrigated Of which 62% in just three countries: South Africa, Madagascar and Sudan

6. Large untapped potential of smallholder private irrigation or Agricultural Water Management (AWM) – sometimes referred to as the informal irrigation sector • 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…

7. 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

8. 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. Comparison of Ghana’s Formal and Smallholder Irrigation Sectors

9. 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 vegetables Madhya 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

10. Investment in this sector can benefit millions of poor men and women through additional income and improved food security and nutrition. • Lack of data on smallholder AWM to guide policy and investment • Many 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-making • Limited 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). 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).

11. Donors, government & private sector Solution pathways Improve the value chain Rethink energy and AWM Adopt Watershed perspective Ensure technology access for all Enhance knowledge flow Activity 2a Reduce import barriers and taxes 2 1 5 3 4 Activity 3a Explore and pilot financial instruments Activity 1a Empower farmers with information to make informed decisions on technology choice Activity 4a Stimulate alternative energy sources Activity 5a Assess possible environmental impacts at multiple scales Activity 2b Develop registry of dealers Activity 3c Pilot irrigation service providers concept Activity 4b Consider AWM in electrification plans and policies Activity 5b Recognize and address resource conflicts Activity 2c Provide credit to dealers to enlarge their stock Activity 1b Ensure farmers’ access to horticulture and marketing information Activity 2d Improve market infrastructure & address middlemen monopoly

12. Improve the value chain 2 • What needs fixing: • Import duties and taxes • No quality control, distorted price-quality relation • Very limited choice in local market Government & private sector Improve the value chain Activity 2a Reduce import barriers and taxes Activity 2b Develop registry of dealers Activity 2c Provide credit to dealers to enlarge their stock Activity 2d Improve market infrastructure & address middlemen monopoly

13. Donors, government & private sector Solution pathways Improve the value chain Rethink energy and AWM Adopt Watershed perspective Ensure technology access for all Enhance knowledge flow Activity 2a Reduce import barriers and taxes 2 1 5 3 4 Activity 3a Explore and pilot financial instruments Activity 1a Empower farmers with information to make informed decisions on technology choice Activity 4a Stimulate alternative energy sources Activity 5a Assess possible environmental impacts at multiple scales Activity 2b Develop registry of dealers Activity 3c Pilot irrigation service providers concept Activity 4b Consider AWM in electrification plans and policies Activity 5b Recognize and address resource conflicts Activity 2c Provide credit to dealers to enlarge their stock Activity 1b Ensure farmers’ access to horticulture and marketing information Activity 2d Improve market infrastructure & address middlemen monopoly

14. Adopt a watershed approach 5 • What needs fixing: • Environmental issues • Resource conflicts • No regulations Adopt watershed approach Government & donors Activity 5a Assess & monitor possible environmental impacts Activity 5b Recognize and address resource conflicts Activity 5c Multiple interventions & multiple use approach

15. Scaling Up—Tanzania: Prioritizing AWM for smallholders • Where does water matter for rural livelihoods ? • Where are the rural people and how poor are they ? • Is there enough water ?