Reforming water policies in agriculture

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agriculture policy brief

Reforming water policies in agriculture

June 2019

ater policies in agriculture need to respond to new water risks and ensure that agriculture W production is sustainable; but reforming water policies in agriculture is challenging. ast water and agriculture reforms show the importance of taking advantage of windows of P opportunities to adopt policy changes effectively, and that preparation is key. hen the time is right, governments should build a robust evidence basis, align institutions W with the policy change, consult stakeholder strategically, rebalance economic incentives, and set a flexible reform sequencing.

What’s the issue? The agricultural sector faces increasing water risks, mainly due to climate change and increased water demand from other economic sectors. In many regions, agriculture production exacerbates these risks, as a major water user and polluter, while impacting water supply for other users and freshwater ecosystems.

A review of recent policy changes in OECD countries related to water in agriculture shows that introducing reforms can be accelerated by external factors, including major water-related events (droughts, floods or pollution). Reforms can also be effective when the economy is stable and when political conditions are right to support reform. Governments can also facilitate reforms by ensuring sufficient preparation time before reforms, by discussing the trade-offs for stakeholders, or by building a coalition of the willing.

Despite progress, further agriculture and water policy efforts are needed to respond to these growing challenges. Governments may be aware of potential policy options but they do not always know how to successfully introduce and implement these options. Policy changes in this area are also often long, gradual, complex and not always fully implemented.

Policy changes on water in agriculture evolve over time: Irrigation support transfers in selected OECD countries 1800

Australia

Chile

Canada

EU

Israel

Japan

Korea

Mexico

New Zealand

1600 1400 1200 1000 800 600 400 200 0

www.oecd.org/agriculture

tad.contact@oecd.org

@OECDagriculture

Turkey

United States


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