AgWater Solutions: Unlocking the potential for smallholder agriculture

www.iwmi.org Water for a food-secure world

AgWater Solutions: Unlocking the potential for smallholder agriculture

Timothy O. Williams Director, Africa International Water Management Institute (IWMI)

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Presentation Outline

• Smallholder farmers, land and water resources in SSA • AgWater Project & AWM solutions for smallholder farmers • Key messages and investment opportunities

• Proposed solutions for scaling-up AWM solutions for smallholder farmers

• AWM solutions in the context of WLE program


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Why focus on smallholder farmers?

• They dominate the agricultural landscape in SSA.

• They contribute significantly to national food security and export earnings in many countries.

• They produce a range of commodities on which

agricultural value chains depend.

• With increased agricultural productivity and incomes they will constitute a huge consumer base for goods and services, with positive implications for investment and economic growth.


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Land and water resources in SSA

• Less than a fifth of the 39 million ha of land deemed physically suitable for irrigation is currently equipped for irrigation.

• Average agricultural water withdrawals are 1.3% of renewable water resources.

• Groundwater use is less than 20% of renewable

supplies.

Source: FAO. 2011. The state of world’s land and water resources for food and agriculture. Rome.


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Africa - Smallholder AWM reaches more farmers than public irrigation.

Smallholder AWM: A vibrant and growing sector

Agricultural Water Management in Ghana

Source: estimates based on farmer surveys under this project

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

No. of farmers Irrigated area (ha.)

Public irrigation schemes Small reservoirsMotorized pumps Buckets, watering cans


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The goal of the AgWater Solutions Project was to improve the livelihoods of millions of poor and marginalized farmers in sub-Saharan Africa and South Asia through better agricultural water management.

Reaching Millions


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The AgWater Solutions Project

A three-year project, commenced in 2009. Implemented in 5 countries in sub-Saharan Africa and 2 states in India.

AWM solutions identified through broad partnership of organizations and institutions and in consultation with stakeholders.


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Identifying AWM Solutions: Water within a larger context of rural livelihoods

An AWM solution is any measure, including technologies, products and practices, that increases or improves AWM knowledge, policies and financing and…

• Contributes to smallholder livelihoods

• Benefits women and men • Cost-effective • Suitable for out-scaling • Addresses resource

sustainability


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Project Approach: From Research to Impact on the Ground

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Continual Dialogue, Learning and Adapting

Continual Dialogue, Learning and Adapting

Core: Engagement with primary

stakeholders (e.g. farmers,

policymakers, investors)


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Scope of Analysis

Burkina Faso Ghana Ethiopia Tanzania Zambia India

Field and community level studies

AWM Technologies and Water Access: manual and motorized pumps, drip irrigation, well drilling, groundwater/surface water use and potential

X X X X X X

Storage and Management: In-situ/ex-situ rainwater harvesting, small reservoirs, inland valleys X X X X X X

Financing: Micro-credit, linkages with poverty programs X X X X

Supply Chain: Equipment supply chain, agriculture/energy nexus, produce markets, outgrower schemes

X X X X X

Gender Dimensions: gendered organization of farming X X X

Watershed Impact & Scenario Analysis X X X X

National Livelihood & Suitability Maps X X X X X X

Regional Upscaling Potential X


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Results, products and tools


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Smallholder AWM solutions leverage an existing farmer-driven trend

• Farmers increasingly initiate and finance.

• Technologies exist and adoption rates are increasing.

• Investment costs typically low and profit margins high.


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Potential yield improvements

Crop Low-input, rainfed

yield (t/ha)

High input, irrigated yield increase (%)

Maize 1.4 141-195 Paddy rice 1.1 270-283 Groundnuts 0.7 238-251 Sweet potato 4.3 200-212 Tomatoes 20 76-79


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Growth Potential of AWM Solutions in SSA No of farmers that

could be potentially reached (million)

Annual additional household net revenue

generated (Billion US Dollar)

Motor pumps 185 22 Rainwater harvesting

147 9

Small reservoirs 369 20

Communally-managed river diversions

113

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Inland valley rice

53 7


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Potential of motor pumps in SSA & Tanzania

SSA: motor pumps • 185 million potential rural

beneficiaries • Net revenues up to US$22 billion/yr.

Tanzania: motor pumps could benefit 2-4 million people (8-12% of rural households) .


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• Business models on investment options and implementation pathways

• National Livelihood Maps to target and prioritize investments

• Regional suitability analysis and tools to assess geographic, social and environmental implications of investment scenarios

• Multi-stakeholder engagement approaches to promote and accelerate positive AWM changes

• Participatory GIS to assess and manage potential trade-offs in a watershed

• Interactive gender map to allow planners/implementers to add gender-related farming systems information

• Interactive AgWater Solutions scenario tool that will allow implementers to assess the potential of different AWM solutions.

Products and Tools http://awm-solutions.iwmi.org


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BUT…


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Investment costs of irrigation technologies in sub-Saharan Africa

Investment costs

(USD/ha)

O&M costs (USD/year)

Financed by

Buckets <50 <10 Farmers Motor pumps 400 330 Farmers Treadle pumps 350 <10 NGOs & Farmers Public canal irrigation 10,000 Often not charged, but frequent

rehabilitations needed Gov’t & Donors

Sector largely overlooked by investors


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Lacks supportive institutional structures

Existing governing bodies are often not adapted to handle the challenges posed by this alternative mode of irrigation development. Smallholder AWM lacks an institutional ‘home’.

Nariarlé Basin, Burkina Faso Local informal actors fragmented, preventing collective bargaining. Water User Associations (WUAs) could enhance coordination and efficiency at the watershed scale. Improving relations between village and national institutions will improve negotiation and planning.


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Risks from unchecked spread of the sector

Challenges – equity, efficiency and sustainability

Access: women and resource poor farmers face challenges accessing affordable AWM.

Market Inefficiencies: negatively affect farmer decision-making and technology access. Sustainability: uncontrolled spread of small-scale AWM can lead to environmental damage.


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Investment opportunities and approaches for

scaling-up AWM solutions


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Targeted investments can help address AWM constraints and enhance agricultural sector's potential

4 solution pathways proposed

Improved livelihoods of smallholder farmers

1 2 4 3

Increase access to water

Catalyze smallholder value chains

Promote policy coherence

Take a watershed perspective


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1. Increase access to water Rainwater harvesting • Create suitability maps • Show farmers the benefits • Garner local support • Offer smart subsidies • Provide technical support

Shallow groundwater • Map groundwater resources • Develop affordable drilling • Raise awareness and create demand • Monitor environmental risks

Small reservoirs • Reduce investment costs • Pilot new management approaches • Acknowledge multiple uses


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2. Catalyze smallholder value chains Innovative financing mechanisms for equipment acquisition • Pilot innovative financial instruments • Support rental markets • Explore irrigation service providers’ model • Encourage women to own equipment

Help farmers to profitably use AWM Solutions • Provide better information • Improve market access • Provide crop storage facilities • Improve roads & transportation systems • Facilitate roles of other value chain actors


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3. Create policy coherence across sectors and create incentives • Align trade (import), energy, water and

agricultural sector policies • Develop alternative energy sources

• Privatize procurement and marketing of irrigation equipment

• Review tax policies and import duties


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4. Take a watershed perspective

Managing social, economic and environmental impacts • Consider multiple complementary AWM

solutions and investments

• Develop systems to promote cooperation

• Develop indicators to monitor and evaluate multiple impacts of AWM solutions and investments


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Social and Institutional

impacts

• Equity in gender and income • Institutions for resource

management • Changes in knowledge

exchange • Labour

Environmental impacts

• Quantity and quality of water resources

• Area under different land uses • Trends in use of agro-

chemicals • Biodiversity • Carbon emissions

Economic impacts

• Income and wealth • Sources of income • Access to capital/credit

Sample indicators for assessing AWM impacts


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AgWater Solutions-WLE Linkages

CGIAR Research

Program on Water, Land

and Ecosystems

Pho

to: P

rue

Lone

y/IW

MI

CGIAR Research Program on Water, Land and Ecosystems

Cross-cutting themes: Gender,

poverty and institutions

& Ecosystem

services and resilience

Irrigation SRP

Rain-fed

SRP

Resource recovery and reuse

River Basins

Information Systems

AC 1.1

AC 1.2

AC 1.3

AC 2.1

AC 2.2

AC 2.3

AC 3.1

AC 3.2

AC 4.1

AC 4.2

AC 4.3

AC 4.4

AC 5.1

AC 5.2

AC 2.4

AC 2.5

AC 1.4

Enhancing success of irrigation in Africa


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Thank you

Technology

AgWater Solutions: Unlocking the potential for smallholder agriculture