BSEF 2013 agriculture Aaron Schapper

Creating Value Through Irrigation

Black Sea Economic Forum 2013Aaron Schapper

VP & GM International Irrigation

Sustainability – Water Sources

Agriculture Uses 66% of Available Freshwater

Ice Caps

All Water

Industry and Domestic 33% of Available Freshwater

Available Freshwater 33%

Freshwater 3%

Water: The Limiting Resource

• 40% of the increase in global food production over the last 50 years came from irrigated farmland.

• The area of rainfed agriculture has been largely unchanged for the past 50 years. The area of irrigated farmland has increased over 100%.

• Increasing production intensity is critical to achieve food production levels needed to feed a growing global population.

• The ability to control the timing of water application makes precision irrigation an important component to more intensive agriculture.Source: UN FAO 2011

Irrigation vs. Rainfed

Dry land

Irrigated landFAO Irrigation and Drainage Paper #33, “Yield response to water.”

Irrigation Market Segments

DripGreen House

High Value Crops<30 Hectares

Irregular PlotsEfficiency: 75- 95%

MechanizedCereal Grains

Large Open Fields>30 Hectares

PotatoesEfficiency: 75 - 95%

Tree CropsVegetablesSugar Cane

USA – Irrigation Methods

6Valley IrrigationPresenter-Event-April 9, 2023

Pivot/Linear 35%

Flood 50%

Drip 4%

Side Roll 3%

Permanent 3%

Hand Move 3%Traveler 1%

1998 (20M Ha.)12% of Cropland

2012 (23M Ha.)15% of Cropland

Pivot/Linear 51%

Flood 33%

Drip 8%

Side Roll 3%Permanent 2%

Hand Move 2%Traveler 1%

Risk Mitigation

2011 Rain fed 2012 Rain fed 2011 Irrigated 2012 Irrigated0

20

40

60

80

100

120

140

160

180

200

132

59

180190

Corn Yield in Nebraska

Bu

shel

s p

er A

cre

Risk Mitigation

2011 Rain fed 2012 Rain fed 2011 Irrigated 2012 Irrigated0

10

20

30

40

50

60

70

47

25

61 60

Soybean Yield in Nebraska

Bu

shel

s p

er A

cre

2009 2010 2011 2012 2013 $-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Irrigated Land - Center PivotDryland with Irrigation Potential$

/ A

cre

Agricultural Land Values in Nebraska

CAGR = 24.7%

[$958]

[$2320]

University of Nebraska – Lincoln Extension, Institute of Agriculture and Natural Resources, March 20 2013

Ag Land Values Nebraska by Land Grade

2009 2012 2009 2012 2009 2012Low Grade Ave Grade High Grade

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$954

$1,668

$1,276

$2,151

$1,445

$2,786

Irrigated - Center Pivot

Dryland - Irriga-tion Potential

$/A

cre

“Nebraska Farm Real Estate Market Highlights”, 2011-2012 Bruce Johnson, University of Nebraska, Department of Agricultural Economics, June 2012, Report No.191

12

Source: Kansas State University, (2012)

Span 1—1.0 Ha

Span 3—4.8 Ha

Span 4—6.7 Ha

Span 5—8.6 Ha

Span 6—10.5 Ha

Span 7—12.4 Ha

Span 8—15.6 Ha

Span 9—17.9 Ha

Span 10—22.3 Ha

Overhang—9.2 Ha

Span 2—2.9 Ha

Irrigated Area per Span

13Source: Valmont

Cotton – North America

Oranges – South Africa

16

Soybeans – North America

17

Rice – North America

18

Potatoes – North America

19

Coffee – Brazil

20

Pasture Land – New Zealand

21

Sugar Cane - Mauritius

Multi-User Pivot – Kenya

23Valley IrrigationPresenter-Event-April 9, 2023

Thank you!