Water and agriculture

Agricultural regions around the globe have been subject to extensive and increasing water constraints. Major droughts in Chile and the United States have affected agricultural production while diminishing surface and groundwater reserves. These and other extreme weather events, like floods or tropical storms, are also expected to be more frequent. Climate change is projected to increase the fluctuations in precipitation and surface water supplies, reducing snow packs and glaciers and affecting crops' water requirements.

Coupled with these changes, farmers in many regions will face increasing competition from non-agricultural users due to rising urban population density and water demands from the energy and industry sectors. In addition, water quality is likely to deteriorate in many regions, due to the growth of polluting activities, salination caused by rising sea levels and water supply changes. These changes could in turn further impact markets, trade, and broader food security.

Embedding water risk intelligence into decision processes is an essential step toward resilient agriculture. Advances in technology – such as satellite‑based crop monitoring, digital twins of river basins, and machine‑learning‑enabled early warning systems – can help governments and farmers anticipate risks earlier and act more effectively.

The challenges that lie ahead are both extremely complex and locally diverse. It will be important for policymakers to focus on efforts that increase the overall efficiency of water use by the agricultural sector, reduce the sector’s impact on freshwater resources, and improve its resilience to water risks. 

In order to facilitate a transition to a more sustainable and productive agricultural sector that is resilient to water risks, governments should act at the farm, watershed and national levels to :

• strengthen and enforce existing water regulations
• strengthen the capacity of farmers and institutions to anticipate and monitor water risks
• create incentives for farmers to improve their water use and better manage the use of polluting agricultural inputs
• remove policies that support excessive use of water and polluting activities.

To assist policy makers in addressing this challenge, OECD analysis and indicators contribute to formulating policy responses, defining pathways to make the necessary policy changes, and facilitating their implementation to move agriculture towards the sustainable management of water. OECD's work on agriculture and water is also highlighted in the OECD Council Recommendation on Water.