The management of agricultural water resources in regions facing scarcity, requires nuanced policy approaches.
Price adjustments alone are unlikely to significantly impact consumption due to the inelastic nature of water demand and existing subsidies.
[1] Contrasting perspectives exist on addressing the challenge: one view advocates making agricultural water free of charge, citing its eventual return to the hydrological cycle, while another emphasizes reducing water supply costs through technological advancements rather than raising prices.
Effective solutions demand comprehensive measures, including modernization of irrigation systems, institutional reforms, public education on sustainable practices, and support for farmers via subsidies, crop insurance, and advanced agricultural technologies.
Successful reforms depend on strengthening institutional frameworks, modernizing irrigation infrastructure, and providing education and training to farmers.
Creating alternative livelihoods and offering financial incentives are essential to support farmers transitioning away from traditional practices.
Portland 2.17 gallons cost $0.01 [5] Prices for irrigation water that is being provided by a public agency are also typically determined administratively, usually using a flat rate, since metering is not common in agriculture in most countries of the world.