Investing to lower water risk in agriculture

Economy | Winter 2024
By Renata Rimšaitė, PhD

Precipitation-related changes in local conditions impact agricultural outcomes and motivate investing in irrigation infrastructure. Irrigation can help lead toward desired yields and consistent production processes. Irrigation is especially vital in reducing the impacts of water shortages on agricultural production during droughts. The goal of investing in irrigation is to lower water risk in agriculture. However, the strategy for returns and sustainable outcomes appears to be complex. For instance, the approach to solutions may be challenged by unexpected changes in local hydrology conditions. Here, I seek to unravel a couple of factors increasing risk in agricultural production outcomes and challenging potential solutions.

The first challenge is the change in traditional precipitation patterns. Due to increased weather extremes, we have been experiencing too little or too much water more frequently during the growing seasons. These changes in precipitation are increasing risk to growers, particularly in places that are used to relying on abundant water. Variability in precipitation is expected to continue, suggesting that the ability to adapt to changing local conditions in agriculture will grow in importance. Consequentially, more investments in irrigation and drainage will be needed. For example, irrigation has already expanded in areas traditionally dependent on rainfed agriculture (e.g., Illinois, Indiana). This trend is expected to continue, which means that investments in irrigation technology will also increase in those areas. Spending and lending for water infrastructure and water supply solutions in agriculture will continue to grow. However, to meaningfully match investments in solutions with water risk challenges in agriculture, it is important to know current conditions in local hydrology as well as understand potential future changes in those conditions and their implications.


There are many opportunities to get involved in solving water risk issues in agriculture, and many creative and collaborative partnerships looking for answers to agricultural challenges already exist.


The second challenge is longer-term planning around groundwater availability. Forecasting groundwater levels can be especially difficult because links between precipitation, pumping and groundwater status may be complex. Local hydrological response can be very slow and initially hidden, explaining why, sometimes, aquifer depletion can appear unexpected and sudden. Currently, investment decisions to reduce future risk in agricultural production are often based on historical hydrology characteristics.

Depleting groundwater sources can have significant effects on agricultural outcomes. These effects can mean poorer crop yields, lower farmers’ incomes, diminished farmland values and unpaid loans. Without knowing the potential risks and implications related to local water availability, growers can overinvest in irrigated production improvements. Some investments that have already been made will likely become stranded because the water won’t be there due to aquifer depletion or changes in snow hydrology and climate. Already, there is anecdotal evidence from the Southern High Plains and other regions supporting that agricultural water delivery infrastructure cannot be used anymore due to depleted water resources.

Pointing out challenges is, of course, easier than prescribing tailored solutions. To effectively address complex issues arising from changes in precipitation and groundwater availability, it’s crucial to incorporate a wide range of perspectives and expert knowledge, ensuring that the solutions developed are practical and beneficial for growers. It is also important to consider that water risk in agriculture affects many stakeholders. There are many opportunities to get involved in solving water risk issues in agriculture, and many creative and collaborative partnerships looking for answers to agricultural challenges already exist. I’m especially excited about pathways to answers that invest in focusing on incentivizing sustainable water use practices.

Renata Rimšaitė, PhD, is a senior program manager for the Daugherty Water for Food Global Institute at the University of Nebraska. Views or opinions expressed in this column do not represent her employer.
it-icon

RELATED NEWS

IA-Show25

The View from Long Beach

Irrigation Show highlights industry innovation with new board members and groundbreaking product announcements.
Winter25_Admin-Preview

Post-election Impact

GOP control of Congress and White House signals potential regulatory shifts for irrigation industry.
Winter25_Soil-Moisture1

Optimizing vineyard irrigation

Sensor-driven irrigation scheduling helps conserve water while optimizing grape yield and quality through automation.