~ CHAPTER 7 ~
ECONOMICS, POLITICS AND HISTORY OF IRRIGATION
Edition 5 of July, 2007 (Updated June, 2009) (
Updated October 2010)

~ TABLE OF CONTENTS ~

(7-A) ~ Irrigation Economics ~ [A1]~General, [A2]~Water Prices, [A3]~Capital Costs, [A4]~Irrigation Subsidies - US, [A5]~Irrigation Subsidies - US - Policy Issues, [A6]~Irrigation Subsidies - US - States, [A7]~Irrigation Subsidies - Non-US, [A8]~Desalinization, [A9]~Central-Pivot Irrigation, [A10]~Drip Irrigation, [A11]~Region-categorized data, [A12]~Irrigation Efficiency, [A13]~Wastewater, ~
(7-B) ~
Politics of Irrigation and Water ~ [B1]~General, [B2]~South America, [B3]~North America, [B4]~Asia, [B5]~Africa, ~
(7-C) ~
History of Irrigation ~ [C1]~General, [C2]~North and South America, [C3]~Europe, [C4]~Asia, ~
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ir7

NOTE: The notation (su4) means that the adjacent data was used in the document analyzing the sustainability of the productivity of the world's systems for producing food, fiber and water.

Section (7-A) ~ Irrigation Economics ~ [A1]~General, [A2]~Water Prices, [A3]~Capital Costs, [A4]~Irrigation Subsidies - US, [A5]~Irrigation Subsidies - US - Policy Issues, [A6]~Irrigation Subsidies - US - States , [A7]~Irrigation Subsidies - Non-US , [A8]~Desalinization, [A9]~Central-Pivot Irrigation, [A10]~Drip Irrigation, [A11]~Region-categorized data, [A12]~Irrigation Efficiency, [A13]~Wastewater, ~

Part [A1] ~ Irrigation Economics ~ General ~

An intact wetland - important both as habitat and as a natural pollution filter and as a water-storage facility - is worth $6000/ ha in Canada, while one that has been cleared for agriculture is worth about $2000 (05F3).

The market value of goods produced by a given amount of water use in industry is 50 times larger than the market value of food produced with the same amount of water. (De Villiers, M. (1999). Water Wars : Is the world's water running out ? Weidenfeld and Niconslon, London. p. 316.) (06H2). Comments: This suggests that, as water resources become scarcer, much irrigation water is likely to be reallocated to urban and industrial uses.

See a listing of large databases in Chapter 8 Section (8-E) for sources of tabulations of:
~ GDP per capita in 2002, by country
~ National poverty rate (%) (total, urban, rural) by country
~
GDP by country
~ Average annual growth rate of GDP (%) (1992-2002) by country
~ Distribution of GDP by sector (%) (agricultural, industry, Services) in 2002, by country
~ Foreign direct investment (Net inflow) in 2002, by country
~ Official development assistance and aid in 2002, by country
~ Percent of population living on $1/ day and $2/ day, by country
~ Fertilizer applied (kg/ha) in 2001, by country
~ labor inputs to agriculture (workers/ ha) in 2001, by country

Studies by IHE-UNESCO suggest that with significant investments in water harvesting, conservation tillage and supplemental irrigation, yields of staple food crops could be more than doubled in many areas of sub-Saharan Africa (03R1). Comments: Probably true, but with Africa's population growth creating huge demands on infrastructure capital and with Africa's huge external debt, there is no way to raise the capital needed for the irrigation projects, dam building and agricultural technology. They can't even afford fertilizer.

The amount of grain farmers get per cubic meter of water consumed (evapo-transpired) ranges from 0.2 kilograms - typical of rain-fed systems in sub-Saharan Africa - all the way up to 2.5, found in highly productive rain-fed systems in Europe (04Z1). In a review of 40-irrigation systems, Sakthivadivel et al (1999) (99S2) found a 10-fold difference in the gross value of output per unit of water consumed by evapo-transpiration.

Alcamo et al (00A2), estimating irrigation withdrawals in 2025 based purely on environmental considerations, found that in order to sustain ecosystems, irrigation withdrawals need to be reduced by 7% from 1995 levels.

A few widely quoted studies (98B4) (00A1) show that, in some cases, the values generated by irrigation proved to be less than the values generated by the ecosystems they replaced.

Estimated Costs of Water Supply Options (1995) (Costs in Col. 2 are in cents/ m3) (96P3):

Reducing demand via conservation/ efficiency~ ~ | ~ 5- 50
Treatment and reuse of wastewater for irrigation| ~30- 60
Desalinization of brackish water~ ~ ~ ~ ~ ~ ~ ~ | ~45- 70
Development of marginal water sources ~ ~ ~ ~ ~ | ~55- 85
Desalinization of sea water ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ | 100-150

Source used by (96P3): World Bank, "From Scarcity to Security: Averting a Water Crisis in the Middle East and North Africa", Washington DC 1995.

Farm-gate value (cents) of the production by 1000 liters of irrigation water in 1992-1993 (01T1):
New South Wales| 30
Australia~ ~ ~ | 41
Victoria ~ ~ ~ | 43
South Australia| 53
Queensland ~ ~ | 64
California ~ ~ | 87
Israel ~ ~ ~ ~ |242

Pasture irrigation in Australia (01T1): About 60% of the irrigation water is used on 60% of the irrigated land to produce grass - 15% of the farm-gate value of Australia's irrigated land. Comments: Much irrigation water in California is used to irrigate grass (Alfalfa). This makes no economic sense and only happens because the US government heavily subsidizes the cost of the water. Irrigation water is heavily subsidized virtually worldwide.

The World Bank foresees an increase in financing water infrastructure in the developing world: Some 16% of the 20 billion dollars in loans is for water projects and is expected to increase to 24% ("World Bank Sees Increased Need to Finance Water Infrastructure", Agence France Presse (1/30/03)).

Grain Imports as a percent of total consumption (a ton of grain = 1000 tons of water) (02E1).
Iran ~ ~ ~ ~ | 40%
Egypt~ ~ ~ ~ | 40%+
Morocco~ ~ ~ | 50%
Algeria~ ~ ~ | 70%+
Saudi Arabia | 70%+
Yemen~ ~ ~ ~ | 80%
Israel ~ ~ ~ | 90%

Dregne and Chou (Ref. 18 of (97C1)) estimate the value of production of irrigated cropland at $625/ ha/ year ($95/ ha/ year for rain-fed cropland and $17.50/ ha/ year for rangelands).

On average, a ton of water (about 1 m3) used in industry generated roughly $14,000 worth of output. A ton of water used to produce grain generated about $200 worth of output (00S1). (su4)

Soil salinization costs $11 billion/ year in reduced income. (F. Ghassemi, A. J. Jakeman, H. A. Nix, "Salinization of Land and Water Resources: Human Causes, extent, Management and Case Studies", University of New South Wales Press Ltd., 1995) Comments: These statements are also in the Soil Degradation Review.

Salinization costs the world's farmers $11 billion/ year in reduced income (99P1) (00W2) (95G3).

Only China - 1.3 billion people, a fast-growing economy, and a $40-billion-plus trade surplus with the US - has the potential to disrupt world grain markets. In short, falling water tables in China could soon mean rising food prices for the entire world (00B1). Comments: China's trade surplus with the US is now far larger than the number indicated above.

Part [A2] ~ Irrigation Economics ~ Water Prices ~

The amount of desalinized water required by 1 ha of corn would cost $14,000/ year, while all other inputs, like fertilizers, cost $500/ year (Pimentel, D. et al, (2004). Water Resources: Agricultural and Environmental Issues. Bioscience 54(10): pp. 909-918.)

In a sense, water can be seen as a right; at the same time the Dublin principles affirm that water must be viewed as a commodity with economic value. (International Conference on Water and the Environment (ICWE) in Dublin, Ireland (1/31/92) "The Dublin Statement on Water and Sustainable Development"). Presently many of the world's poor pay extremely high water tariffs to get their water from informal water distributors. ((06O1) page 197)

In the end, water systems should seek to be inclusive and offer either 'life line' subsidies or reduced rates to those who struggle to pay user fees. By limiting the amount of water available at reduced rates, the tendency of such rates to foster over-consumption can be avoided (06H2). (06H2 is in Ref List)

The price of water is increasing -- sometimes dramatically-throughout the world. Over the past five years, municipal water rates have increased by an average of 27% in the US, 32% in the UK, 45% in Australia, 50% in South Africa, and 58% in Canada. In Tunisia, the price of irrigation water increased fourfold over a decade.

A recent survey of 14 countries indicates that average municipal water prices range from 66 cents per cubic meter in the US up to $2.25 in Denmark and Germany. Yet consumers rarely pay the actual cost of water.

The average American household consumes about 480 cubic meters (127,400 gallons) of water during a year. Homeowners in Washington, DC, pay about $350 (72 cents per cubic meter) for that amount. Buying that same amount of water from a vendor in the slums of Guatemala City would cost more than $1700.

The price people pay for water is largely determined by three factors: the cost of transport from its source to the user, total demand for the water, and price subsidies. Treatment to remove contaminants also can add to the cost.

The cost of transporting water is determined largely by how far it has to be carried and how high it has to be lifted. China is constructing three canals that are 1156 kilometers, 1267 kilometers, and 260 kilometers long to transfer water from the Yangtze River to Beijing and other rapidly growing areas in the northern provinces.

Pumping water out of the ground or over land to higher elevations is energy-intensive. Pumping 480 cubic meters of water a height of 100 meters requires some 200 kilowatt-hours of electricity. At a price of 10 cents per kilowatt-hour, the cost is $20 -- not including the cost of the pump, the well, and the piping. One hundred meters is not an unusual lift for wells tapping falling supplies of groundwater. In Beijing and other areas in northern China, for instance, lifts of 1000 meters are sometimes required.

Mexico City, at an elevation of 2239 meters, has to pump some of its water supply over 1000 meters up a mountain. The operating costs alone amount to $128.5 million annually. Pumping this water requires more energy than is consumed overall in the nearby Mexican city of Puebla, home to 8.3 million people. Amman, Jordan, faces a similar problem related to delivering water to higher elevations.

In most places water is not purchased or exchanged in a market. But formal water markets are developing in the western US, Australia, and Chile. Where these water markets do exist, they provide examples of how high the scarcity value of the water-that is, the amount that other potential users would be willing to pay for it-can be. Water prices in Australia's markets peaked at near 75 cents per cubic meter in December 2006, climbing 20-fold in a year in part due to prolonged drought. In the US West, water prices typically range between 3 cents and 10 cents per cubic meter. In some western US cities, water is so scarce that cities are selling sewage effluent for as much as $1 a cubic meter to be used for irrigating gardens.

In India, water scarcity has prompted some farmers to profit by selling their water instead of farming. The water they formerly used to irrigate their crops is instead pumped from their wells and trucked to nearby cities.

The final factor affecting how much people pay for water is the amount it is subsidized. Water subsidies can be very large. For instance, water revenues in the city of Delhi (India) are less than 20% of what it spends each year to provide water. On average worldwide, nearly 40% of municipal suppliers do not charge enough for water to meet their basic operation and maintenance costs.

In several Asian cities, households forced to purchase water from a private vendor pay more than 10 times as much as middle-income families who are connected to the municipality's distribution system. The poorest households in Uganda spend 22% of their income on water, while those in El Salvador and Jamaica use more than 10% of their income to satisfy water needs.

Farmers in California's Central Valley use roughly one fifth of the state's water and pay on average slightly over 1 cent/ cubic meter, just 2% of what Los Angeles pays for its drinking water and only 10% of its replacement value. One analysis of a new US project in central Utah found that the water it will provide will cost close to 40 times more than irrigators pay for it.

Water is currently managed as if it were worthless instead of the life-sustaining, valuable, and increasingly scarce resource that it is. A key step in moving toward more rational water management is to place a price on water that reflects its value and scarcity. In Osaka, Japan, users pay a set monthly fee that includes 10 cubic meters of water; beyond that prices increase in steps from 82 cents per cubic meter up to $3 or more for high-volume users. Ensuring that the poorest households are connected to a secure water supply can protect them from price gouging by private vendors.

In Nairobi, Kenya, bottled water, purchased from supermarkets, costs more than petrol (05U2).

A middle class family of 5 in Nairobi's Lavington suburb has to spend 10,000 Kenya shillings a month, ($128 US), for water (05U2).

Nairobi's water and sanitation crisis worsened in 2000, when a scorching drought forced the authorities to ration water and power supplies. As in most African cities, the problem is not so much that bulk treated water is in short supply, but that about 50% of Nairobi's water is wasted or unaccounted for (05U2).

The global urban water crisis has been receiving increasing attention in all international dialogues on water ~ Dublin and Rio de Janeiro in1992, Nordwjik in1994, Beijing and Istanbul in 1996, in Cape Town in 1997, and the second World Water Forum in The Hague in 2000 (05U2).

In water terms, a 1990 survey of 29 sub-Saharan African countries revealed that 8 were suffering from water stress or water scarcity. By 2025, this number is expected to increase to 20 out of 29 (05U2).

Many people along the Texas/ Mexican border are already paying a large share of their monthly income for water (Ref. 33 of (02K2)).

Reports of US cities paying well over $1.00/ m3 for water are increasingly common (Ref. 34 of (96G1)).

Los Angeles has paid $0.25/ acre-ft. of water that normally costs $100-$200/ acre-ft. Las Vegas has paid $0.50/ acre-ft. (96P1).

Part [A3] ~ Irrigation Economics ~ Capital Costs ~

Globally, between 92.4 and 148 billion dollars are needed annually for investment in building and maintaining water supply systems, sanitation and irrigation (09I1). China and developing nations in Asia alone face financial needs of 38-51.4 billion dollars per year (09I1).

Aid for irrigation projects in 2002-2005 was less than 50% of what it had been in 1978-1981 (09U2). Comments: This is probably due, in part, to the staggering debt owed by developing nations to external sources, i.e. developed nations.

According to the World Bank, each job created in irrigation costs $5000 to $6000 as compared to $44,000 in other sectors of the economy (04W2). Comments: Is this capital cost plus operating costs or just one of these?

The world's irrigation capital investment represents a total capital value of $1.9 trillion (99P1). Comments: That amount would be larger if irrigation systems were required to be built and operated with sustainability in mind, i.e. with a system of drainage pipes under the soil surface.

During 1950-1993, the World Bank lent $31 billion for irrigation projects worldwide (p. 233 of (99P1)).

Average Cost of Irrigation Projects ($/ km2) (99P1) (World Bank data of around 1995)
Region - - - - - - - - - |- Cost
South Asia ~ ~ ~ ~ ~ ~ ~ | ~137,000
Latin America / Caribbean| ~392,300
East Asia~ ~ ~ ~ ~ ~ ~ ~ | ~429,100
North Africa ~ ~ ~ ~ ~ ~ | ~491,100
Europe ~ ~ ~ ~ ~ ~ ~ ~ ~ | ~474,300
Middle East~ ~ ~ ~ ~ ~ ~ | ~506,200
Sub-Saharan Africa ~ ~ ~ |1,826,900
Type of Project
Pump (mostly groundwater)| ~376,600
Gravity~ ~ ~ ~ ~ ~ ~ ~ ~ | ~558,400
Rehabilitation ~ ~ ~ ~ ~ | ~163,300
New Construction ~ ~ ~ ~ | ~774,000
All Projects ~ ~ ~ ~ ~ ~ | ~483,700

A 1995 study by the World Bank of more than 190 Bank-funded projects found that irrigation costs now average $480,000/ km2 (99P1).

In the Philippines, (inflation-corrected?) costs of new irrigation systems have increased more than 50% since 1970 (99P1).

In Thailand, the cost of new irrigation systems have risen 40% since 1970 (99P1) (Presumably in inflation-adjusted terms).

In India and Indonesia, the cost (in inflation-adjusted terms) of new irrigation more than doubled since 1970 (99P1).

The capital cost for new irrigation capacity in China is $150,000/ km2 (90P1).

For large irrigation projects in India, Indonesia, Pakistan, the Philippines and Thailand capital costs are $150,000-$400,000/ km2 (Ref. 6 of (90P1)).

In Brazil, capital costs of irrigation projects are $600,000/ km2 (Ref. 6 of (90P1)).

In Mexico, capital costs of irrigation projects are $1,000,000/ km2 (90P1).

In Africa, the capital costs of irrigation systems are $1,000,000-2,000,000/ km2. (Ref. 5 of (92P1)) (90P1).

Mexico's irrigated area has dropped since 1985 due to a lack of capital (Ref. 8 of (90P1)). Comments: Population growth requires lots of financial capital to pay for infrastructure growth.

Brazil's irrigation targets seem unlikely to be met given the required capital investments (Ref. 8 of (90P1)).

The cost, globally, of building new irrigation projects has risen markedly, contributing to a 6% decline in per-capita irrigated land since 1978 (97P3).

Ref. (70T1) (p. 53) argues that, since irrigation is strongly capital-intensive, it can succeed only when combined with sophisticated farm technology (including chemical fertilizers and genetically improved seeds).

A weighted average for medium-large irrigation projects in several countries produced an estimated cost of $98,000/ km2, with a range of $56,000-$177,000/ km2 (70T1). These data are for land in settled areas that don't require extensive clearing. Sprinklers on farm irrigation systems adds about $25,000/ km2 (70T1).

A UN report estimates the average cost to salvage irrigation land that has been destroyed by salinization or waterlogging is $65,000/ km2 (Ref. 22 of (78B2)). (Obsolete data - for historical purposes only)

In 1975, $16.9 billion was invested as capital in irrigation facilities in the US. Of this, $9 billion was federal investment and $7.9 billion was state- and private investment. The implied average investment was $66,700/ km2 in project facilities, and $25,900/ km2 for on-farm facilities ((81B1), p. 83).

Irrigation system funding (globally?) has fallen 25-33% since the mid-1970s (96G1). Comments: This presumably is in inflation-corrected terms.

The average cost (worldwide) indicates an average cost of $100,000/ km2, ranging from $10,000-$300,000/ km2 (70T1). Other interesting analyses of irrigation economics are given on p. 54 of Ref. (70T1).

Although the prevention of secondary salinization is theoretically possible in many developing countries, in most cases the need to construct expensive drainage systems makes the economic expediency of introducing irrigation questionable (Ref. 236 of (88S1) (p. 218)).

Part [A4] ~ Irrigation Economics ~ Irrigation Subsidies ~ US ~

Public Subsidies for Irrigation: (94D1)

Reclamation contribution to US production of surplus crops (94D1) ("bu" = bushels)
- - - - - - - - - |United St. |Reclamation
Crop (Units)- - - |Production |Production(%)
Corn (bu)-~ ~ ~ ~ | 7,475,480 |102,162 (1.4)
Sorghum (bu)- ~ ~ | ~ 584,860 | ~2,474 (0.4)
Oats (bu)-~ ~ ~ ~ | ~ 243,451 | ~5,844 (2.4)
Barley (bu)-~ ~ ~ | ~ 464,326 | 41,682 (9.0)
Wheat (bu)- ~ ~ ~ | 1,372,617 | 45,418 (3.3)
Rice (cwt)- ~ ~ ~ | ~ 157,457 | 13,797 (8.8)
Upland Cotton(bale)| ~ 17,614 | ~1,518 (8.6)

These crops are frequently referred to as "subsidized," because they are included in USDA income and price support programs. In addition, acreage reduction programs support lower production and higher prices. It has been noted that the BuRec (US Bureau of Reclamation) expenditures to provide subsidized water for these crops undercut USDA expenditures to reduce production. A 1992 GAO study observed a further inconsistency, in that irrigators may grow surplus crops on federal land at low land leasing rates. Some farmers even received USDA support payments in exchange for not growing these crops on federal land that they lease. (General Accounting Office, Report to the Chairman, Government Information, Justice, and Agriculture Subcommittee, Committee on Government Operations, "Commodity Programs: Should Farmers Grow Income-Supported Crops on Federal Land?" GAO/RCED-92-54, 1/1992).

The following table compares the actual prices being paid for each acre-foot of irrigation water on various projects with the "full cost" price for irrigation water. "Full cost" is calculated as the cost for irrigation water if full repayment of the irrigation portion of the project, included any deferred Operations and Maintenance, is amortized with interest from the date of construction expenditures.

- - - - - - - - - - - - - |Contract| Full
Project District- - - - - | ~ Price| Cost (94D1)
CVP* Westlands~ ~ ~ ~ ~ ~ | ~ 8.00 | 45.79 ($/acre-ft.)
CVP* Broadview~ ~ ~ ~ ~ ~ | ~ 3.50 | 30.62
CVP* Glenn-Colusa ~ ~ ~ ~ | ~ 2.00 | ~9.77
CAP Central Arizona ~ ~ ~ | ~ 2.00 |209.49
CAP New Magma ~ ~ ~ ~ ~ ~ | ~ 2.00 |248.52
Pick-Sloan Riverton Valley| ~ 0.75 | ~8.18
Pick-Sloan Torrington ~ ~ | ~ 2.80 | ~7.27

*By contrast, irrigators receiving water from California State Water Project pay $100-$200/ acre-foot.

Of the 44,530 km2 of farmland in 17 western US states now receiving water from federal projects, 14,170 km2 are owned by agribusiness (81F2).

Robert Repetto places the average subsidy to beneficiaries of US federal irrigation largesse at 83% of full project costs - over $1 billion/ year. (Robert Repetto, "Skimming the Water", World Resources Institute, Washington DC, 1986).

The US Bureau of Reclamation (BUREC) recovers 17% of the total economic costs of its irrigation projects - a $1 billion/ year subsidy. In Central Valley California, irrigators (as of the mid-1980s) have repaid only 4% of the capital cost of the Central Valley Project ($38 million of $950 million). Taxpayers paid the rest (Ref. 57 of (93P2)).

The US Congressional Budget Office calculates that, from the inception of the federal irrigation program in 1902 through the mid-1980s, irrigation subsidies totaled $33-70 billion. (Committee on Natural Resources, US House of Representatives, "Taking from the Taxpayer: Public Subsidies for Natural Resource Development", Washington DC 1994).

Farming practices are generally excluded from the list of industries required to report toxic chemical releases to the TRI. Thus, irrigated farming need not report releases of toxic fertilizers and pesticides that reach the environment through aerial spraying, land application, tail-water runoff, drainage water, and groundwater recharge (94D1). Clean Water Act Sect.402 requires generally that all point sources discharging pollutants into the waters of the US must obtain a permit and meet standards for reducing pollutant discharges. Irrigation drainage ditches, however, are specifically exempted from this requirement. The value of this exemption to irrigators is unknown, although the contribution of irrigation drain-water to the pollution of US waters has been partially documented by the Department of the Interior (94D1).

Bureau of Reclamation statistics indicate that US taxpayers paid $534 million to deliver water to western irrigators in 1988 (George Wuethner, Sierra, Sept.-Oct. 1990).

During 1902-1986, total construction cost subsidy in the western US by BOR reclamation programs was $20 billion ($500,000/ km2 = 86% of total construction costs) (96P1).

On average, the US government subsidizes irrigation at $54/ acre/ year (1989). Bureau of Reclamation (BuRec) statistics indicate that taxpayers paid $534 million to deliver water to western irrigators (mostly stockmen) in 1988 (p. 394 of (91J1)).

Part [A5] ~ Irrigation Economics ~ Irrigation Subsidies ~ U. S. ~ Policy Issues ~

Policies developed by the US Congress in the 1940s gave farmers a price break on water compared with urban and industrial users (04C1). (Rates charged to farmers don't include any of the interest on the financing of the $3.6 billion Central Valley Project; urban and industrial rates do include interest.) For example, urban San Jose California pays about $80/ acre-foot from the Central Valley Project, while farmers 50 miles away pay as little as $10/ acre-foot (04C1). Farmers with surplus water sell this water for several times what they pay the federal government for it (04C1). (Continued below)

Elimination of agricultural subsidies for water in the Central Valley Project could result in enough increases in water conservation to supply a city the size of Los Angeles (04C1). The California State Department of Water Resources estimates that doubling water prices would reduce water use by roughly 30% (04C1). (Continued below)

The 600,000-acre Westlands (Water) District (US) received only slightly more than half of its 1.1-million-acre-foot annual allotment of water during 1999-2004 (due to drought), causing farmers to tap groundwater (04C1). (Continued below)

Uses of Central Valley (US) Project water in thousands of acre-ft.: Crops and irrigation - 5628; Municipal and industrial - 419; Environmental - 1180 (US Bureau of Reclamation data) (04C1).

The US government may soon agree to spend a half-billion dollars to shrink the nation's largest federal water district in west Fresno and Kings counties by up to 200,000 acres, a move that would change the face of west San Joaquin Valley agriculture. The agreement with the 605,000-acre Westlands Water District would also end the district's controversial state claim for San Joaquin River water. The claim has caused a historic division between east and west Valley farmers in the last six months. The government would buy up to 200,000 acres that are threatened by drainage problems, solving a decades-old dilemma of what to do with the brackish irrigation drainage. The land would go into wildlife habitat, and Westlands would redistribute the irrigation supplies once used on the retired land (01G1). (Continued below)

Though nobody is sure how much money would be lost in the $1 billion-plus west-side farm economy, retirement of endangered farmland is considered a logical remedy. The deal would apply to farmers who have land in a 150-200,000-acre area of the district that is threatened by rising underground brackish water. The bad water comes from irrigation that doesn't drain away. It perches instead on clay layers and rises toward crop roots. If irrigation continues in the future, the land will be poisoned. The land purchases would be made from willing sellers at "fair market" prices between $1,500-$3,000/ acre. But the agreement would appear to solve another expensive problem for the US Department of Interior, which promised decades ago and failed to provide drainage for Westlands farmers. After years of legal fights, Interior must provide by 2/26/01 a court-ordered drainage plan that might cost billions of dollars (01G1).

The Bureau of Reclamation's irrigation support programs started with the passage of the Reclamation Act of 1902. Major revisions of the law in 1926, 1939 and 1982 resulted in the current basic structure of the Reclamation program, which provides interest-free repayment of the construction costs of major irrigation projects throughout the West. The terms of construction, repayment and operation of these projects provide a number of overlapping policies that cumulatively increase subsidies to irrigation water users. The water subsidy to irrigators is supplemented by a variety of subsidies provided through national agricultural programs. In addition, irrigators benefit from subsidies for water pumping power and river-borne transportation on federally improved waterways and from certain exemptions from environmental laws. Many of these projects also contain a hydropower component, which provides subsidized energy to non-irrigators (94D1).

The Small Reclamation Project Act provides loans through BuRec for improving or expanding existing irrigation facilities at reduced interest rates. The portion of the loan expended on irrigation-related facilities is repaid at 0% interest. The portion of the loan expended on flood control benefits is not repaid at all. The maximum amount of each loan was originally set at $6.5 million of a $10 million project, but with indexing for inflation may now reach $34.2 million out of a total proposed project cost of $51.3 million (94D1).

In 1988, the US Department of the Interior defined the irrigation subsidy as: the difference between the annual Federal cost of constructing, operating, and maintaining the irrigation portion of a project, including interest at a Treasury rate on the capital investment, and the revenues received by the Federal Government toward those costs (94D1).

The report described in Ref. (94D1) describes the complex web of overlapping and sometimes contradictory benefits (subsidies) (price supports, tax breaks, low-cost loans and exemptions from environmental laws) given in mineral extraction, irrigation water, hydropower, timber, grazing and recreation. The federal government provides US Bureau of Reclamation (BuRec) water to farmers and urban consumers in the seventeen Reclamation states. This report focuses largely on BuRec's irrigation water deliveries, because water for urban uses is not intentionally subsidized, and in fact receives far less subsidy (94D1).

A recently released congressionally-mandated report by the Western Water Policy Review Advisory Commission recommends the federal government put more emphasis on restoring degraded watersheds, transfer water allocations from farms to cities and charge full market value for water from new irrigation projects. The report, which embraced the heretofore heretical view that agriculture needs give way to environmental and urban needs, stated, "A vision is growing that changes must be in the way that we manage water" (98U1).

The Farmers Home Administration (FmHA) administers a number of loan programs that support US farmers by providing low-interest non-recourse loans. In addition to the low interest rates, farmers often benefit from the agency's failure to pursue unpaid loans. According to news reports, FmHA writes off an average of $2.3 billion in non-collectible loans annually. In the past five years, the agency has written off $11.5 billion, and continues to carry another $5 billion in delinquent loans on its books. In FY88 and FY89, the agency had total operating losses of $20.7 billion, with $2.8 billion of non-collectible loans written off in FY89. Despite Congressional concern expressed in 1981 over multi-million dollar delinquencies in "emergency loans," many of these delinquencies have not yet been recovered (94D1).

More open markets for water would create incentives for farmers to irrigate more efficiently, and to switch to less-thirsty crops (97P3).

If governments, the World Bank, and development agencies would make a complete accounting of the environmental and social effects of large water projects, a more accurate tally of costs and benefits would tip the scales toward efficiency, conservation, and smaller-scale projects (97P3).

In the Reclamation Reform Act of 1982, Congress recognized that owners of excess irrigated acreage might reap a windfall profit in the sale of their subsidy along with the excess land. The Reform Act required that excess land sales be executed at a price that reflected the value of the land without the subsidy. Agriculture Department crop program and disaster program subsidies provide similar benefits; a recent calculation estimated that these programs added close to $100 billion to farmland values nation-wide (94D1).

According to the US Department of the Interior's 1988 calculations, the total subsidy to irrigators from 1902-86 was $9.8 billion. The average annual subsidy through 1986 was $117.3 million; the actual annual subsidy in 1986 was $534.3 million. The difference between the average and current annual subsidy results from the fact that the annual subsidy has been increasing over time as more irrigation projects are built, increasing both the capital investment and annual expenses of the program (94D1). (Continued below)

These 1988 figures were found highly questionable in a report by the Subcommittee on General Oversight and Investigations, "Department of the Interior's Efforts to Estimate the Cost of Federal Irrigation Subsidies: a Record of Deceit."(Subcomm. on Oversight and Investigations, Comm. on Interior and Insular Affairs, Comm. Print 9, 100th Cong., 2nd Sessio n, 12/88 (hereinafter cited as O and I Report).) In that report, the Subcommittee documented efforts within the Department of the Interior to discredit an initial estimate of the subsidy prepared by Interior's own analysts. The Subcommittee's investigation revealed that the Department's analysts had calculated the total irrigation subsidy since 1902 at $19-$24.2 billion. The Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) also disputed the Department's calculation, with a recalculation by CBO based on BuRec's figures revealing a total irrigation subsidy of $33.7 to $70.3 billion. Further, no one has ever calculated the additional support provided to these same irrigators through Department of Agriculture programs. A recent calculation by the Environmental Working Group concluded that USDA acreage reduction and farm payment programs nationwide -for irrigators and non-irrigators-contribute a total of $83 to $111 billion to farmland values. (Eileen M. Gannon and Kenneth A. Cook, "Faking Takings: Farm Subsidies and Private Property in Perspective," Environmental Working Group, 6/94) (94D1). (Continued below)

The basic subsidy incorporated into the Reclamation program is the interest-free repayment of the construction costs of irrigation projects, including dams, distribution systems and sometimes drainage systems. Under Reclamation law, the cost of constructing these projects is repaid to the federal government over a 40-50-year period. Irrigators are required to repay the portion of the construction costs allocated to irrigation; that is, that portion of the costs that Bureau of Reclamation determines is the share of the project that supports irrigation. The irrigators, however, pay no interest on the unpaid irrigation construction costs. Thus, Reclamation construction repayment is like receiving an interest-free loan for 40-50 years (94D1).

Part [A6] ~ Irrigation Economics ~ Irrigation Subsidies ~ US - States ~ [A6a]~Arizona, [A6b]~California, [A6c]~Columbia Basin, [A6d]~New Mexico, [A6e]~Oklahoma, [A6f]~South Dakota, [A6g]~Utah, ~

The federal government pumped more than $2.3 billion in crop subsidies into Iowa last year. If that were an industrial payroll, it would be the equivalent of having a company that employs 50,000 workers and pays them more than $46,000 each.

None of the traditional justifications for farm subsidies stands up to scrutiny.
To guarantee the nation's food supply? Only a few grains and cotton are eligible for subsidies. The majority of food is produced without government subsidy.

To keep food cheap? Although they don't work well, farm programs are meant to raise the price of farm commodities, not lower them. But the subsidized grains make up such a tiny percentage of the final cost of processed food that they have little impact on what the consumer pays anyway.

To save the family farm? What a cruel hoax. Crop subsidies tend to speed the demise of the family farm because the bulk of the payments go to the biggest farmers. That gives them extra cash to buy out the little guys.

To aid in rural economic development? Crop subsidies tend to work against economic development for the same reason they work against small farms. They accelerate rural population decline. Moreover, farmers tend to be locked into producing the "program crops," so the diversification of agriculture that could help rural areas is discouraged. (Editorial: "The slow poison of farm subsidies" by the Des Moines Register Editorial Board Sunday (11/18/01).)

[A6a] ~ Irrigation Economics ~ Irrigation Subsidies ~ US -States - Arizona ~

The Central Arizona Project (CAP) completed around 1993, diverts water from the Colorado River and delivers it to irrigation projects in central Arizona for $2/ acre-ft. The cost to the US taxpayers: $209/ acre-ft. (99P1).

The desert, so dry that imported Arizona cactus needs watering, has sprouted a man-made ski lake, 100 lush golf courses, outdoor air conditioning and gardens fit for the tropics. A quarter million residents use an average of 375 gallons of water/ day at home - twice the national norm. That costs a household only half as much as cable TV (01R1).

Cotton growing is coming back to the southern US because the federal subsidies are higher for it than the soybeans and rice they were growing that receive lower subsidies. World market cotton price has reduced price to 38 cents/ pound, so massive federal subsidies keep US growers afloat. Arizonans grow alfalfa, and feed grains in the desert with massive federal water subsidies, and massive federal power subsidies to pump fossil groundwater (and some riparian groundwater) (New York Times 7/16/01).

In order to obtain water necessary to meet the terms of an Indian water rights settlement, the government repurchased the remaining term of its 40-year contract with Harquahala Valley Irrigation District in Arizona. Although all parties acknowledged that the irrigation district could not afford to continue irrigating with the Reclamation water, the irrigation district claimed that the loss of the water was a significant injury. They persuaded BuRec to pay $1050/ acre-foot for the right to the water, in addition to simply canceling the contract. The Interior Inspector General found this bargain overly generous (94D1).

[A6b] ~ Irrigation Economics ~ Irrigation Subsidies ~ US ~ States - California ~

About 20% of the Colorado River's flow goes to California's Imperial Irrigation District (IID) that irrigates nearly 2000 km2 of cropland. IID gets the water from the federal government for free. Farmers pay only delivery costs (1 cent/ m3). California uses 14% more Colorado River water than a 1922 interstate agreement entitles it to, and has been put on notice to live within its share. Cutbacks would come out of urban suppliers, since IID farmers have more senior water rights (p. 111 of (99P1)).

The largest project, the Central Valley Project in California, has thus far involved a capital investment of $4 billion to construct several dams and related distribution systems traveling hundreds of miles to supply irrigation water to more than 2.5 million acres of land on almost 20,000 farms. The terms of sale for BuRec water provide a substantial discount to the irrigators compared to the cost of developing and operating the projects themselves (94D1).

The most extreme example of rolling repayment is the Central Valley Project (CVP) in California. BuRec's interpretation of the Reclamation laws led to delaying CVP repayment more than 40 years after the first project water was delivered (94D1).

Californa's Imperial Valley's 100 different crops earn $1 billion/ year, but the majority of water goes to break-even hay, including sudan grass hay exported cheaply to Japan as cattle feed. Farmers see alfalfa as a holdover from the past (01R1).

Developers of Shadow Lake (CA?), near Indio, bought land and planned to pump groundwater to fill a 43-acre ski lake, 12 feet deep, and sell 48 sites for shore-side homes. The sales manager at Shadow Lake acknowledges that his project might look like a waste of water. But he insists the opposite is true. When completed, the opulent gated community will be worth $70 million, he said, contributing $1 million a year in taxes. The same water used for agriculture would add up to a fraction of net value. "It all depends on the price you put on a bucket of water," he said. "The beauty of this is that we paid only $3,400 to fill the lake because we used agricultural water." He estimates the total at 100 million gallons (01R1).

Palm Springs (CA) and nearby towns bloom on a desert moonscape. Rainfall is less than three inches/ year. At the Palm Desert Marriot resort, boats ferry diners from the lobby to a restaurant across a 23-acre artificial lake. Its brochure says, "It took over 50 million gallons of water to fill the indoor lake and waterfalls" (01R1).

Beyond the Salton Sea to the south, 400 Imperial Valley (CA) farmers receive as much Colorado River water as Arizona and Nevada combined. Their main crop is alfalfa, a thirsty, low-profit feed for dairy cows and horses (01R1).

[A6c] ~ Irrigation Economics ~ Irrigation Subsidies ~ US ~ States - Columbia Basin ~

Grain shipments amounted to 80% of shipments out of the four Lower Snake River reservoirs in the upper reaches of the Columbia Basin transportation system. These shipments paid nothing toward the cost of those four projects that was allocated to navigation. However, these grain shipments benefit from navigational facilities through the lower Basin as well. The total navigational allocation for the facilities that these grain shipments use is $426,721,000. A new lock on Bonneville Dam will raise this to $591,221,000 (94D1).

[A6d] ~ Irrigation Economics ~ Irrigation Subsidies ~ US ~ States - New Mexico ~

(New Mexico) Congress authorized transfer of the Vermejo (irrigation) Project in New Mexico to the local district in 1980, with further repayment delayed indefinitely, "until such time or times as the Secretary determines repayment to be reasonably feasible" (94D1).

[A6e] ~ Irrigation Economics ~ Irrigation Subsidies ~ US ~ States - Oklahoma ~

In 1943, Congress wrote off repayment of all construction costs over $3,080,000 on the W. C. Austin project (then called the Lugert-Altus project) in Oklahoma, reducing the irrigators' repayment obligation by $8,293,000 (94D1).

[A6f] ~ Irrigation Economics ~ Irrigation Subsidies ~ US ~ States - South Dakota ~

An irrigation project in northern South Dakota will bring water to 80 farmers who will pay $0.0025/ m3. The cost to the taxpayer will be $0.106/ m3 (81F2) (GAO data).

[A6g] ~ Irrigation Economics ~ Irrigation Subsidies ~ US ~ States - Utah ~

The Central Utah Project (CUP) delivers water from Colorado River tributaries to Utah farmers at a cost to the tax-payers of $400/ acre-ft. Farmers pay $8/ acre-ft. (p. 231 of (99P1)).

Part [A7] ~ Irrigation Economics ~ Irrigation Subsidies ~ Non-US ~ [A7a]~Jordan, [A7b]~Tunisia, [A7c]~China, [A7d]~India, [A7e]~Australia, [A7f]~Israel, [a7g]~Mexico, ~

Norman Myers estimates that irrigation subsidies, globally, total at least $33 billion/ year, and if the full costs of environmental damage, human resettlement from dam sites, increased water-borne diseases from irrigation projects, etc. were factored in, the total subsidy would be far higher. (Norman Myers, "Perverse Subsidies: Their Nature, Scale and Impacts", a report to MacArthur Foundation, Chicago IL, 10/97).

Pakistan's cost-recovery on irrigation projects is 13% (a $50 million subsidy) (87R1).
Bangladesh's cost-recovery on irrigation projects is 1% (87R1).
Indonesia's cost-recovery on irrigation projects is 7% (87R1).
South Korea's cost-recovery on irrigation projects is 13% (87R1).
Nepal's cost-recovery on irrigation projects is 4% (87R1).
Philippines cost-recovery on irrigation projects is 10% (87R1).
Thailand's cost-recovery on irrigation projects is 3% (87R1).

In most Third World countries, government revenues from irrigation average no more than 10-20% of the full cost of delivering water (Ref. 54 of (90P1)).

Irrigators in Indonesia, Mexico and Pakistan pay less than 15% of their water's full cost (93P2).

[A7a] ~ Irrigation Economics ~ Irrigation Subsidies ~ Non-US - Jordan ~

Irrigators of Jordan pay under $0.03/ m3 of irrigation water - a small fraction of the cost to the government (p. 230 of (99P1)).

[A7b] ~ Irrigation Economics ~ Irrigation Subsidies ~ Non-US - Tunisia ~

Tunisia's farmers pay $0.05/ m3 of irrigation water - 1/7th of the Tunisian government's costs of supplying the water (p. 230 of (99P1)).

[A7c] ~ Irrigation Economics ~ Irrigation Subsidies ~ Non-US - China ~

Water consumption is subsidized in most parts of China (07Y1).

China's cost-recovery on irrigation projects is 25% (87R1).

In China, water for irrigation etc. is supplied free, or is greatly under-priced. So it is used inefficiently. Beijing urban dwellers get water at a fraction of its real cost (Ref. 4 of Chapter 9 of (95B3)).

In China's dry region, many cities and provinces are raising water prices - sometimes by a factor of three - in order to reduce subsidies (97Z1).

[A7d] ~ Irrigation Economics ~ Irrigation Subsidies ~ Non-US ~ India ~

India heavily subsidizes use of irrigation water by providing electricity for pumping water to farmers at a nominal cost (Sandra Postel, Last Oasis, W. W. Norton & Co., 1997, p. 170).

Less than 10% of the total recurring costs for major and medium-sized irrigation projects built by the Indian government as of the mid-1980s have been recovered (96P1) (p. 230 of (99P1)).

[A7e] ~ Irrigation Economics ~ Irrigation Subsidies ~ Non-US ~ Australia ~

Australia recently slashed public subsidies for water, forcing farmers to use water more judiciously (97Z1).

[A7f] ~ Irrigation Economics ~ Irrigation Subsidies ~ Non-US ~ Israel ~

Israeli farmers grow flowers for Europe with subsidized water (Mort Rosenblum, "Drought of Biblical Scale Worsens", Associated Press (7/6/01)).

Israeli farmers grow flowers for Europe with subsidized water (01R2).

Israel's farmers pay much less than household consumers and industries for water even though farmers (2% of the economy) use 60% of the drinkable supply (01R2).

[A7g] ~ Irrigation Economics ~ Irrigation Subsidies ~ Non-US - Mexico ~

Foreign companies like Suez, the French giant, which handles water billing and administration for half of Mexico City now, has bought Enron's water subsidiary, provides water to Cancun. Two years ago in Cochabamba, Bolivia. Bechtel took over the water supply and doubled prices. A bloody uprising drove it out (02R1).

Agriculture uses 80% of Mexico's water and pays nothing, although it only ranks seventh in contribution to the gross national product. Mexican households pay less than a third of actual cost of delivery for water. That leaves industry, the backbone of Mexican hopes for development, paying up to five times as much as households (02R1).

Part [A8] ~ Irrigation Economics ~ Desalinization ~

A desalinization system in East Africa, for example, reports 70% less energy than other systems, yet still requires 2.3 kwH (nearly 2,000 kcal) per cubic meter (1,000 liter) of water (Gilau, A. M., Van Buskirk, R., and Small, M. J. (2007). Enabling Optimal Energy Options Under the Clean Development Mechanism. Energy Policy 35(11): pp. 5526-5534.)

More than 1,000 desalinization plants operate in the US, many in the Sunbelt. The Tampa Bay Seawater Desalinization Plant produces about 25 million gallons/ day of fresh drinking water, about 10% of that area's demand. The $158 million facility is North America's largest plant of its kind (07S3).

A report said that Dubai's imminent shortage of water has been compounded by its real estate boom. This region is already the driest in the world. It is the largest market for water desalinization in the world. Officials expect daily water demand to reach 341 million gallons per day and daily electricity needs to reach 8513 megawatts by 2011. Demand for water in Dubai during the peak summer season rose 10% to reach 184 million gallons per day in 2004. It is estimated that more than 7,500 desalinization plants are in operation in the world, of which 60% are in the Middle East. The world's largest desalinization plant produces 128 million gallons per day in Saudi Arabia. Regional demand for desalinated water is growing at 6%/ year, double the global average, and regional governments have invested an estimated $10 billion to boost capacity. But with a surging population across the Gulf, a further investment of around $100 billion is anticipated over the next 10 years. Lebanon and Syria were the only countries in the Middle East with adequate water supplies. Long before 2050, every country in the Gulf region will face water shortages that only desalinization can avert. Oman supplies 61% of residential water through desalinization, and it is vital to find ways to make the process less expensive. Other measures, such as recycling water and reducing consumption, are also essential. Qatar is funding the development of a 567MW power and 29.1 million gallons per day water desalinization facility. 20% of houses in Jordan use solar water heaters and the number is expected to rise. ("Threat of Water Shortages Sees Middle East Governments Focusing on Increasing Supply," AME Info www.ameinfo.com/95533.html, Visited 9/6/06.).

As of December 1995, a total of 11,066 desalinization units had been installed or contracted for worldwide, with a collective capacity of 7.4 km3/ year. The cost of desalted water in 1995 was $1.00 to $1.50/ m3 (96P3).

The cost of desalinization water to meet the needs of the Middle East's 170 million people would be $170 billion/ year (01T1).

There are a number of different ways desalinization can occur. Reverse osmosis is becoming the most common. The costs depend on a lot of factors. For example energy sources available (in the middle east it is common to built the desalinization plant together with an electricity generation plant thus lowering costs). Other factors include the chemical makeup of the source water. Pretreatment is required for desalinization by reverse osmosis. In Western Australia the source seawater requires minimal treatment and one desalinization plant is co-located with a fertilizer plant giving access to waste heat and cheaper power. Costs around the world vary highly. The best case I'm aware of claims about 80-90 cents per kilolitre but it was built with very attractive finance and access to cheap power. Generally, it is claimed to be about $1.20 to $1.50/ kilolitre. So $1.11 is relatively cheap. Desalinization technology is improving and costs are dropping. Desalinization plants are under construction in many parts of the US such as CA, TX and FL. One was recently announced for southern England. Cost sharing by mixing all water together may mean that the overall cost of water to individual households may not rise much. (Sheila Davis, Gecko - Gold Coast & Hinterland Environment Council, 139 Duringan Street, Currumbin Queensland 4223 5534-1412 (W) www.gecko.org.au (6/29/04)).

Price of desalinization water in California: $2,000/ acre-foot in the 1980s; $800/ acre-foot in 2002 (03U2). Comments: Irrigators typically cannot afford to pay more than about $15/ acre-foot.

Five desalinization plants in California are planned with construction to begin by 2005. Cost: $300 million each (03U2). More than 12 small desalinization plants were built along California's coast during the early 1990s. Nearly all were shut down due to high operating costs (03U2).

Desalinization is not a solution to most water problems. To irrigate one km2 of corn using desalinization would cost more than $1,400,000/ year plus the cost getting water inland to the corn (98P1).

Typical cost of desalinizing seawater: $1.00-$1.50/ m3 ((99U3), p. 168).

The 1981 cost of desalinating salty water is $0.24/ m3 (plus brine disposal costs) (81S3).

About 7,500+ desalinization plants create 4.8 km3/ year of fresh water (0.1% of global fresh water use (Ref. 14 of (92P1))). The cost of this water is $1-2/ m3 (Ref. 15 of (92P1)). (See Section (2-C) for more information on desalinization.)

The world's 7500 desalting plants have a capacity of 4.8 km3/ year = 0.1% of world water use. Desalted water costs $0.81-$1.62/ m3. The cost for desalting brackish water is $0.41-.65/ m3 (91W2).

The average urban dweller pays $0.24/ m3 for delivered water (91W2). The energy cost of desalted water is 4.9 kw-hour/ m3 for the most efficient method (91W2).

The theoretical minimum energy required to remove salt from seawater is 2.8 million joules/ m3, but even the best desalinization plants use 30 times that amount (Ref. 24 of (96P2)). Comments: This suggests an efficiency of less than 10% at best.

[A9] ~ Irrigation Economics ~ Central-Pivot Irrigation ~

C.P.I. is used on 24,000 km2 in the US. Each system covers 0.53 km2 in a 0.65 km2 square. The cost of each system is $50,000. The electrical cost is $1500-$2500/ year (same as for a sprinkler system) for 0.65 km2. Labor cost is $346/ km2/ year (compared with $990/ km2/ year for a sprinkler network). C.P.I. uses 40% less water than ditching does - and it can be used in rolling terrain (76O1).

Center-pivot irrigation systems cost $55,000 each in 1979 (79A1). (Obsolete data - for historical purposes only.)

Part [A10] ~ Irrigation Economics ~ Drip Irrigation ~

Low-pressure sprinkler systems reduce water use by an estimated 30% relative to flood- or furrow irrigation. Drip irrigation typically reduces water use by 50% relative to flood- or furrow irrigation (Ref. 35 of (05B1)). (SU4)

Use of Drip- and micro-irrigation in selected countries around 2000 (05B1) (SU4)
Col. 2 = Area Irrigated by Drip- and other Micro-irrigation Methods in units of thousands of ha.
Col. 3 = Share (%) of Total Irrigated Area Under Drip- or Micro-irrigation.
Country ~ ~ |Col.2|Col.3
Cyprus~ ~ ~ | ~36 | 90
Israel~ ~ ~ | 125 | 66
Jordan~ ~ ~ | ~38 | 55
South Africa| 220 | 17
Spain ~ ~ ~ | 563 | 17
Brazil~ ~ ~ | 176 |~ 6
US~ ~ ~ ~ ~ | 850 |~ 4
Chile ~ ~ ~ | ~62 |~ 3
Egypt ~ ~ ~ | 104 |~ 3
Mexico~ ~ ~ | 143 |~ 2
China ~ ~ ~ | 267 |less than 1
India ~ ~ ~ | 260 |less than 1
Total ~ ~ ~ |2844 | --

Comments: The implication of the above table is that only a small percentage of the world's irrigated lands are being irrigated by drip- and other micro-irrigation methods. That percentage is given elsewhere in this review document ~ a few percent as I recall.

Drip-irrigation water-use efficiency can be 80-95% (compared to 70-80% for sprinkler systems, and 50% for furrow systems (77S1).

Capital cost of drip-irrigation systems: from $120,000 up to $250,000/ km2. A recently developed system cuts the capital cost to $25,000/ km2 (p. 178 of (99P1)).

Part [A11] ~ Irrigation Economics ~ Region-Categorized Data ~

[A11a] ~ Irrigation Economics ~ Region-Categorized Data - Africa (North) ~

Collectively the 2000 km2 of irrigated crops of the arid- and desert zones represent 10-15% of the value of agricultural production of the arid zones, and almost 100% of the total production of the desert regions. Irrigated agriculture is rather non-productive. Lack of drainage causes excessive salt deposits or hydro-morphology or both (70L1).

In some Sahelian countries wetlands are potentially important contributors to food security (86J1). Past experience in inland valleys of the Sahelian belt suggest that reclamation of wetlands for agriculture has been of doubtful benefit despite huge international investments. Many irrigation schemes have failed through mismanagement and inadequate infrastructure maintenance, civil unrest and weak market development. Soils in this region are potentially productive only after certain constraints are overcome, e.g. acid sulphate-, aluminium- and iron toxicity and waterlogging (03N1).

[A11b] ~ Irrigation Economics ~ Region-Categorized data - California ~

About 4000 km2 of irrigated pasture require 5.7 km3 of water/ year - as much as an urban population of 23 million (90L1). Pasture, the single largest water use in California, is an extremely low value crop, worth $94 million gross in 1986 (90L1).

The energy input for irrigation in California is analyzed in Ref. (77K1). Total primary energy for irrigation is 23 billion kW-Hour (12% of the energy required by California agriculture) (77K1).

[A11c] ~ Irrigation Economics ~ Region-Categorized Data - Egypt ~

The product value of irrigation water in Egypt is $0.03/ m3. The cost of producing desalinated water by nuclear energy is at least $0.25/ m3 (76E2).

A proposed drainage system covering only a small portion of (irrigated lands of) Egypt's Nile Delta has been priced at $1 billion (89P2).

[A11d] ~ Irrigation Economics ~ Region-Categorized Data ~ Israel ~

Israelis reduce water requirements 30-40% by switching from sprinkler systems to drip-irrigation (77A2).

The product value of irrigation water in Israel is $0.18/ m3 (76E2). Israel's irrigation system can feed 1000 people/ km2 - compared to a global average of 250 people/ km2 (77A2). Comments: This data was copied to Chapter 2 on 9/21/04 - where it ought to reside.

[A11e] ~ Irrigation Economics ~ Region-Categorized Data - Japan ~

Japan's total industrial water-use peaked in 1973 and then dropped 24% by 1989. Industrial output, meanwhile, climbed steadily. As a result, the value of output from each m3 of water supplied to Japanese industries rose from $21 in 1965 to $77 (in real terms) in 1989 - a more than tripling of industrial water productivity (97P3).

[A11f] ~ Irrigation Economics ~ Region-Categorized Data - Texas ~

In the early 1970s, Gaines Co. Texas farmers pumped water for irrigation at $0.0012/ m3. In the early 1980s the cost was $0.0049/ m3 due to increased fuel costs, and because the water table has dropped 3.9 meters (Ref. 57 of (81S3)). By 1995, fuel price increases and water-table depletion will eliminate irrigation in 32 counties on the Texas panhandle (USDA study) ((81B2), p. 26).

[A11g] ~ Irrigation Economics ~ Region-Categorized Data - US ~

In the US, 127 water transactions were reported in 12 western states during 1991. Most water was being sold by farms and bought by cities (97P3).

Irrigation uses 5% of agriculture's energy requirements (Ref. 3 of (77K2)).

Ref. (70T1) gives a table that compares populations, resources, land areas, irrigated area, cropland area, 1965 crop income, 1965 farm income, 1965 livestock income for the arid western states of the US.

Revenues collected from farmers cover an average of less than 10% of the cost of building and operating public irrigation systems (87R1). The cheap water goes primarily to richer farmers and is often used to grow surplus crops. In the US along, taxpayers finance $1 billion/ year of water subsidies (87R1).

According to BUREC figures, western US farmers received an irrigation subsidy from the federal government of $534.3 million in 1986 -$13,300/ km2 of irrigated land (88M1). Nearly 40% of that cheap federal water was used to grow crops that the government deemed surplus (cotton, rice, wheat, corn, oats, barley, sorghum, soybeans) (88M1). Federal taxpayers subsidize the irrigation of crops that are then eligible for federal subsidies (price supports, marketing loans, etc.) - all to the tune of $900 million/ year. During 1976-1985 an average of 15,000 km2 of US irrigation was used to produce surplus crops (88M1).

Irrigators in the Vernal unit of the Central Utah Project pay $909/ km2 for water that costs $50,540/ km2 (88M1). North Platt Project (NB and WY) farmers pay $54/ km2 for water that would carry an unsubsidized price of $2020/ km2 (88M1). Central Valley (CA) irrigators pay the BUREC $0.005/ m3 of water -water that cost $0.06/ m3 to produce (85K1).

The desalinization cost for the Wellton-Mohawk Project is to be $0.264/ m3 - more than 10 times what the water is worth to the farmers (87P1). The economic problems resulting from federal subsidies for irrigation projects producing surplus crops, etc. are reviewed in Ref. (87C1).

Part [A12] ~ Irrigation Economics ~ Irrigation Efficiency ~

On average, for the 93 developing countries, it is estimated that irrigation efficiency was around 38% in 1997/1999, varying from 25% in areas of abundant water resources (Latin America) to 40% in the Near East/ North Africa region and 44% in South Asia where water scarcity calls for higher efficiencies (Table 4.10). (Irrigation efficiency is defined as the ratio of estimated consumptive water use in irrigation to irrigation water withdrawal.) (03B1)

(See Section (6-A) [9]~for more data on irrigation water use efficiency.)

Part [A13] Irrigation Economics ~ wastewater ~

Irrigating with wastewater is a widespread phenomenon, occurring on 200,000 km2 across the developing world, especially in Asian countries like China, India and Vietnam, but also around nearly every city in sub-Saharan Africa and in many Latin American cities. Wastewater is most commonly used to produce vegetables and cereals, especially rice. The study was done by the International Water Management Institute. It looked at 53 cities in Latin America, the Middle East, Africa and Asia. It found that 80% of these cities were using untreated or partially treated wastewater. In over 70% of the cities studied, more than 50% of urban agricultural land is irrigated with wastewater that is either raw or diluted in streams (Adam Cox, "Scores of cities using untreated wastewater-study," Reuters (8/18/08).).

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SECTION (7-B) ~ Politics of Irrigation and Water ~ [B1]~General, [B2]~South America, [B3]~North America, [B4]~Asia, [B5]~Africa, ~

Part [B1] ~ Politics of Irrigation and Water ~ General ~

Falkenmark and Lundquist (95F1) argue that, 'Few countries, if any, have a well-functioning system for allocating water between competing demands and needs.'

A report by International Alert, a London-based "peace-building" organization, identifies 46 countries with a combined population of 2.7 billion people where contention over water has created "a high risk of violent conflict" by 2025 (08C1).

In all but the most extreme situations, the best responses to dealing with the challenges of water scarcity are fairly straightforward. Ultimately, water must be treated like both a right and as an economic commodity, as was agreed by the international community in the Dublin Principles (92I1). Social structures must be reformed to give incentives to conserve water when possible, and to use water more productively and efficiently generally (06H2).

Few countries, if any, have a well-functioning system for allocating water between competing demands and needs. (M. Falkenmark and J. Lundquist (1995). "Looming Water Crisis: New Approaches Are Inevitable", Chapter 6, L. Ohlsson, Hydropolitics: Conflict over Water as a Development Constraint. Zen Books, London. p. 181.) (06H2).

Worldwide, subsidies worth at least $650 billion/ year, equivalent to 9% of all government revenues, support logging, mining, oil drilling, livestock grazing, farming (including irrigation), fishing, energy consumption and driving (94U2) (98R1) (99R1).

In some places in the world, it is even illegal to meter water (01R1).

In a sweeping projection of what the world will look like in 2015, the intelligence community has concluded that issues like the availability of water and food, changes in population and the spread of information and disease will increasingly affect the national security of the US (00U1) (00C1).

Worldwide, 214 river or lake basins, containing 40% of the world's population, now compete for water (Refs. 55, 61 of (94K1)).

A decade ago, US intelligence services identified 10 potential flash points where war could break out over water (98S1).

More than 200 river basins in the world are shared by at least two countries. More than a dozen nations get most of their water from rivers that cross the borders of neighboring countries that can be viewed as hostile (98S1).

"We underpay for water almost everywhere. That's one of the biggest problems with water worldwide". Peter Gleick, director, Pacific Institute for Studies in Development (97Z1).

The political nature of societies based on irrigation is discussed in Refs. (74H2), (74L1), and (74K1). They discuss Wiltfogel's concept of "Oriental Despotism", etc. Being politically without influence, the hydraulic farmer maintained a man-nature relationship that included unending drudgery on a socially and culturally depressing level (56W1).

The fundamental political problems promoting the demise of irrigation systems are alluded to on p. 123-4 of Ref. (76E1).

The major problems of water resource development and operation are not technical, but relate to the socio-political situation (74F1). (The author (a hydrologist) is reasonable certain that most, if not all, the water projects he designed will meet the same fate as the ancient Middle-Eastern irrigation projects people now find buried in the sands.)

Part [B2] ~ Politics of Irrigation and Water ~ South America ~

[B2a] ~ Politics of Irrigation and Water ~ South America - Peru ~

Political problems with the distribution of irrigation water in Peru are outlined in Ref. (70C2) (p. 369). These problems reduce the efficiency of water use significantly.

Part [B3] ~ Politics of Irrigation and Water ~ North America ~

In 2007, Canada's House of Commons voted 134-108 in favor of a motion to recommend that its federal government "begin talks with the US and Mexico to exclude water from the scope of NATFA" (08C1).

The Bush administration is considering using the oil-pipeline infrastructure in the Northern Provinces to flow Canadian water to the American Midwest, which, under the North American Free Trade Agreement, is legitimate. Once Canada opens the taps, it can't turn them off again without violating NAFTA accords (02U3).

Mineral County (NV) along with bird-watchers, fishermen and local business owners are accusing the federal government of sitting idly by while farmers suck a desert lake dry in western Nevada". A lawsuit brought by Western Environmental Law Center is a "last-ditch effort to save 38,000-acre Walker Lake." A century of water diversions have caused Walker Lake to drop 130 feet, losing over 70% of its volume (Las Vegas Sun, AP (10/17/01)).

Plans by Albuquerque, New Mexico to use river water diverted from the San Juan-Chama project to supply new homes and businesses is bringing them in conflict with those who want the water carried by the Rio Grande River to be used to protect wildlife. In the past, Albuquerque has allowed some of its water entitlement to go toward conservation but is now desperately seeking ways to stop rapid growth from continuing to draw down the aquifer beneath the city (Albuquerque Tribune (12/28/00)).

An excellent history of western US water law is given in Ref. (84D1).

The economics, politics, etc. of the desalinization of the Lower Colorado River and the Wellton-Mohawk Project are discussed in Ref. (87P1).

Construction promoters have long been a dominant force in irrigation development, to the detriment of those who pay the bill and derive so few benefits ((70T1), p. 54).

The excesses, shady deals, and blatant fraud associated with some of early water development schemes in the western US have been documented in Cadillac Desert by Marc Reisner, and Congress in its Wisdom by Doris O. Dowdy (90L1).

Progress in US salinity control has been disappointing. The delay in implementing control measures, where they have been planned, is not because of lack of technical feasibility or cost-effective measures. It is primarily because of political opposition from those who contribute the most to downstream salinity. Potential effective salinity-control measures have been skirted because those who would pay for them do not envision any benefit for themselves in return. Instead, the focus has been on measures whose costs can be borne broadly, through federal funding, even if they are not the most cost-effective control measures (85E1).

Rice growers of Arkansas, who are on the brink of pumping one of Arkansas' biggest aquifers dry and are now imploring the federal government to bail them out (02U4). Together with the state and the Army Corps of Engineers, the farmers are supporting a $300 million project that would tap the White River to replace irrigation water from the Alluvial Aquifer, which has declined to perilously low levels. The project - costing about $300,000/ farmer - would divert river water to 1,000 farmers on 250,000 acres, representing about 5% of US rice production (02U4). It further enriches an industry that is already extravagantly subsidized. Under the federal crop support program - itself a wasteful exercise - rice growers receive guarantees of $3.10/ bushel for their crops, more than double the $1.40 market price. One result: huge increases in area devoted to rice farming, even as market prices hit a 15-year low (02U4).

Part [B4] ~ Politics of Irrigation and Water ~ Asia ~

China uses irrigation to produce 70% of its food. China's irrigation water is often diverted to the industrial and urban sectors in times of scarcity.


(M. De Villiers, (1999). Water Wars: Is the world's water running out? Weidenfeld and Niconslon, London. p. 307.) (
06H2).

There are now at least 2000 registered independent environmental groups in China. These groups are growing in number and influence. It seems almost inevitable that the central government of China will increasingly rely on these groups for public education campaigns, environmental watch-dogging and ensuring environmental accountability at the local level as the government continues to decentralize environmental decision making.


(
J. L. Turner and L. Zhi, (2006). "Building a Green Civil Society in China." Chapter 9, The Worldwatch Institute, State of the World , Special focus: China and India. W.W. Norton and Company, London. p. 153-170.) (06H2).

The Chinese government has for a long time been concerned with internal discontent of ethnic minorities and is increasingly aware of dissatisfaction from growing wealth disparities. Economic and ecological marginalization worsens the impacts on ethnic minorities and the poor, establishing grievances that threaten social stability (M. Renner and Z. Chafe, (2006). 'Turning Disasters into Peacemaking Opportunities.' Chapter 7. Worldwatch Institute., State of the World , Special focus: China and India. W. W. Norton and Company, London. p. 121.) (06H2).

India has had social turbulence and rioting over price fluctuations in basic food items such as onions. If water scarcity decreases food productivity in more important staple crops such as grains, the potential for local conflict could increase exponentially (06H2).

It is increasingly being recognized that the Indian Water Policy must address the topic of water pricing. Presently India's water pricing system does not fully consider operational or environmental costs. The result is that municipal governments are not able to recuperate their operation costs, leading to poor service and limited economic incentives to conserve water. (L. Bhandari and A. Khare, (2006). "Poor provision of household water in India: respond to artificial scarcity." K. Okonski et al. (Editors.) The Water Revolution: Practical Solutions to Water Scarcity. International Policy Press, London. p. 95.) (06H2).

The current water pricing system in India has created artificial water shortages in urban areas. (L. Bhandari and A. Khare, (2006). "Poor provision of household water in India: respond to artificial scarcity." K. Okonski et al. (Editors) The Water Revolution: Practical Solutions to Water Scarcity. International Policy Press, London. p. 121.) (06H2).

China and India have both experienced water riots ("On Earth Day, the Water News Is Bad", Scripps Howard News Service (4/17/03)).

Bangladesh is suffering because India has diverted and dammed so many of its upstream water sources (02U3).

Part [B5] ~ Politics of Irrigation and Water ~ Africa ~

Ethiopia plans to take more water from the Nile, although Egypt is dependent on those waters for irrigation and power (02U3).

In Africa, relations between Botswana and Namibia are strained by Namibian plans to construct a pipeline to divert water from the Okavango River (02U3).

SECTION (7-C) ~ History of Irrigation ~ [C1]~General, [C2]~North/ South America, [C3]~Europe, [C4]~Asia, ~

Part [C1] ~ History of Irrigation ~ General ~

People to use 35 times as much water as they did 3 centuries ago (98S3). Comments: Is this per-capita?

About 60% of the world's irrigation systems are less than 50 years old. (p. 255 of (99P1)) Comments: Since some decades are normally required before the effects of salinization set in, clearly the losses of irrigated land productivity are far smaller now than they will be in decades to come.

Ref. (99P1) sees a trend from large public irrigation projects to small private projects. It also sees irrigation expansion in many areas reaching the point of diminishing economic returns.

An excellent history of irrigation's role in early human history is given in (56W1) (43 refs.). Effects of irrigation-based agriculture on the character of government are of particular interest, as are the effect of irrigation-based agriculture on population density (56W1). Historical records of the past 6000 years show that civilized man, with few exceptions, has never been able to continue a progressive civilization in one locality for more than 800-2000 years. In most cases, civilizations grew for a few centuries, then declined or were forced onto new lands (Ref. 2 of (85G1)).

In early history of human civilization, hydraulic civilizations covered a vastly larger part of the Earth than did agrarian civilizations. Prior to commerce and the industrial revolution, the majority of all human beings lived within the orbit of hydraulic civilizations ((56W1), p. 161).

Typical population densities at the time of Augustus on non-irrigated lands (56W1)
Roman |European |Augustan|Italy
Empire|Provinces|Greece~ |- - -
30/km2 | 10~ ~ ~ | 11 ~ ~ | 24

On irrigated lands (e.g. Egypt) population densities were 180-280/ km2. Comments: It is of interest to compare the above numbers with the modern-day human carrying-capacity of tropical rainforest under shifting cultivation - about 10/ km2. (See the forest degradation literature review.) It is also of interest to compare the above figures to Dregne and Chou's estimate (Ref. 18 of (97C1)) of the relative value of production of irrigated cropland ($625/ ha/ year) to that of rain-fed cropland ($95/ ha/ year) ($17.50/ ha/ year for rangelands).

Part [C2] ~ History of Irrigation ~ North and South America ~

Before white man, 75% of the total population of the Americas (North, Central, and South) lived in relatively small "hydraulic" (irrigated) regions (3 refs. in (56W1)).

Irrigation was basic to Hohokam Indian settlements in southern Arizona and among the Magollan Indians of central Arizona (74V1).

Water-control devices were noticeably present in the Kayenta during 1150-1300 AD (74V1).

Irrigation began in the Mesa Verde (in the southwestern US) area possible as early at 900 AD. The area was abandoned around 1300 AD (74V1).

By 1050 AD, a population of 10,000 Anasazi people was crowded into an area 14.5 km. x 1 km. in Chaco Canyon (74V1).

Though fishing was the economic mainstay of Peruvian coastal societies in 1800 BC, by 1600 BC irrigation had opened the desert to intense exploitation, and farming was the primary means of support. In the Ancon-Chillan-Rimac region, canal irrigation began around 1750 BC. With the Spanish conquest (1532 AD), the amount of land under irrigation decreased, and many areas farmed in pre-Hispanic times have yet to be reclaimed (74M3). Pre-Hispanic terraced land once covered 10,000 km2 in Peru. 80% of this land has been abandoned (Ref. 8 of (92P1)).

Part [C3] ~ History of Irrigation ~ Europe ~

Sections of the Alps have been irrigated for at least 1000 years (74M2). Valais was irrigated from the 11th to 12th centuries AD (74M2).

Part [C4] ~ History of Irrigation ~ Asia ~

The great hydraulic civilizations of India and China maintained themselves for 3000-4000 years, and hydraulic civilizations in Peru lasted only 1000 years. Societies of feudal Europe and Japan had an even shorter duration ((56W1), p.160).

The final collapse of the artificial irrigation system of southern Arabia between AD 542-70 diminished enormously, the agricultural productivity of southern Arabia (56H1).

Mesopotamian Society reached its zenith between the third and seventh centuries A.D. Irrigation had been extended to nearly all arable land in the region (50,000 km2) 40% more than Iraq's total irrigated area today. By the 7th Century A.D., salt build-up had reached damaging levels in parts of the plain (99P1).

Mesopotamia is possibly the world's oldest irrigated area. At its zenith, Mesopotamia supported 17-25 million people. Today Iraq has a population of 10 million, and on the portions of these same lands that have not been abandoned, peasants eke out some of the world's lowest crop yields (76E1).

As early as 2400 BC, a drastic increase in salinity in southern Iraq seems to have been linked to the cutting of a new irrigation canal by Enternena of Girsu. By 2100 BC, salinization had spread westward toward the Euphrates. The area never recovered (74G1). The northern part of the plain experienced a salinization crisis between 1300 and 900 BC (74G1).

An excellent historical account of the Mesopotamian Irrigation System is found in Ref. (74M1) and in the article following it by M. Gibson ("Violations of Fallow and Engineered Disaster in Mesopotamian Civilization") (74G1). Major salinity damage occurred in Mesopotamia between 2400 BC and 1700 BC (Ref.1-5 of (85G1)). Mesopotamia's irrigation ditches were wrecked by Mongol invaders during the 13th Century AD, but the immense piles of silt alongside showed that the system was well on its way toward destruction by then (56S1). The history of irrigation in the Deh Luran Plain (just east of the Tigris-Euphrates River system) is given in Ref. (74N1). It covers the Sassian and early Islamic period (AD 226-800) and the Later Islamic Period (AD 800-1250).

In 8400 BC, agricultural yields were 2537 liters/ ha. (Respectable by current North US standards). In 2100 BC, yields were 1460 liters/ ha, and by 1700 BC, yields had dropped to 897 liters/ ha. (76E1). Thus it is argued that the growing soil salinity unquestionably played a major role in the breakup of the Sumarian civilization (Ref. 2 of (76E1)). The first recorded civilization, the Sumerians, thrived in the southern Tigris-Euphrates Valley by the 4th Millennium BC. Over 2000 years, Sumerian irrigation practices ruined the soil so completely that it has never recovered (76W1).

Siltation of Mesopotamia's irrigation system is described in detail in Ref. (76E1). Huge mounds of silt, once cleared from irrigation canals, are still a central feature of the landscape in parts of central and northern Iraq (76E1). Mesopotamia's irrigation system collapsed in the 12th Century AD. Mongol invaders in the 13th Century found scenes of devastation (76E1).

In developing a soil map of the Near East, Dudal found that the most characteristic feature of soils in that region was the wide occurrence of saline soil (71R1).

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