USDA Survey Reveals Decline in Irrigation Practices Amid Water Concerns

The recently released 2023 Irrigation and Water Management Survey results from the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) reveal significant trends in the agricultural sector’s water use and irrigation practices. The data indicates a decline in the number of farms utilizing irrigation, the total irrigated acreage, and the volume of water applied for irrigation when compared to the 2018 survey. Specifically, the survey recorded 212,714 farms with 53.1 million irrigated acres and 81 million acre-feet of water used, marking a decrease from 231,474 farms, 55.9 million irrigated acres, and 83.4 million acre-feet in 2018.

This reduction in irrigation metrics may signal a shift in agricultural practices or a response to changing climatic conditions and water availability. The fact that the average acre-feet applied per acre remained constant at 1.5 suggests that while fewer farms are irrigating, those that continue to do so may be optimizing their water usage efficiency. The predominance of groundwater as a source for irrigation—accounting for 54% of the total water applied—highlights the reliance on aquifers, which could raise concerns about sustainability in regions facing water scarcity.

The survey’s findings also emphasize the importance of technology and investment in irrigation systems. With farmers and ranchers spending approximately $3 billion on irrigation equipment and related technologies, the data suggests that there is a strong push towards modernization and efficiency in water management. This trend may be appealing to investors looking at opportunities within the agritech sector, particularly in companies that focus on developing advanced irrigation technologies, water conservation solutions, and data analytics for agricultural practices.

Furthermore, the concentration of irrigated acres in five states—Arkansas, California, Idaho, Nebraska, and Texas—indicates regional disparities in agricultural water use. Investors and stakeholders in the agriculture sector may need to consider these geographic factors when evaluating market opportunities and potential risks. The data also points to a growing area of horticulture under protection, which has increased from 1.5 billion square feet in 2018 to 1.7 billion square feet in 2023, suggesting a rising interest in controlled environment agriculture.

The implications of these findings extend to policymakers and agricultural organizations as well. The detailed insights provided by the survey can inform strategies for improving water use efficiency and developing programs that support sustainable agricultural practices. As the agricultural sector grapples with the challenges posed by climate change and water scarcity, the information from the 2023 survey will be crucial for driving innovation and ensuring the long-term viability of farming operations across the United States.

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