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Determined to conserve precious water, China plans to plug its leaky crop irrigation system and end wasteful farming.

By staff reporter Ren Bo

Water use soars in the Chinese countryside every June as farmers tap irrigation systems and drench thirsty crops.

But this summer, a government a pilot project for farms spread across some 1,000 square kilometers could dramatically change water use habits along a national irrigation network often criticized as too wasteful, especially for a country that needs every drop.

Efficient irrigation is considered key to mitigating China’s well-documented water crisis. Agriculture has always been the top priority for water use in China, with some 70 percent of national water volume devoted to farming.

As a result, scholars say improving agricultural water conservation should be at the center of efforts to optimize China’s national water distribution system. At the same time, a better irrigation system can protect the nation’s grain production.

Comprehensive Reform

The pilot is a joint, three-step project led by the Ministry of Water Resources (MWR) and Ministry of Finance.

First, central and local governments will subsidize farmers who improve irrigation system efficiency. Then Water Management Associations will be established in irrigation districts to control irrigation system property while overseeing facility management and maintenance.

The third step will be to set water prices within irrigation districts. These prices will cover costs of water and maintenance, with farmers paying fees to local management associations.

Zheng Tonghan, deputy director at MWR’s finance department, said irrigation system renovations will greatly reduce water waste. He also promises that prices will be adjusted without burdening farmers.

Government officials cautiously avoid mention of “price increases,” but most have expressed support for exactly that. Water prices have been relatively low in China, and irrigation waste has been a serious problem. Thus, higher prices have been seen as the best way to boost conservation.

Worsening Situation

Every cubic meter of water currently costs, on average, only a fraction of a yuan in China. Prices are even lower for farmers in major irrigation districts.

Experts blame low costs for a huge level of water waste. For example, in some areas irrigated by the Yellow River, up to 50 percent of the water is wasted. And in Gansu Province, some irrigation ditches lose up to 80 percent of the water they’re supposed to carry to crops.

Inefficient water use and low prices that fail to cover irrigation management costs helped pressure the government to launch the latest reforms.

According to MWR experts, inadequate investment in China’s irrigation system have increasingly created bottlenecks for agricultural development. Moreover, China’s large and mid-sized irrigation projects, mainly built between the 1950s and ’70s, suffer from poor design and quality, according to MWR. Many have already surpassed intended lifespans without renovations. Some 40 percent of 400 systems in major irrigation areas suffer from structural defects that greatly reduce efficiency.

In addition, MWR said substandard irrigation facilities waste large amounts of water. Around one-third of the country’s large and mid-sized irrigation areas have water utilization rates of less than 35 percent, which in turn has reduced grain output. Experts think better efficiency will allow irrigated farms to double or even quadruple grain production compared with non-irrigated plots.

Until now, China has failed to invest enough in irrigation systems. According to a blueprint for national irrigation system development, 120 billion yuan should be allocated for improving irrigation projects in more than 402 areas. But in the past nine years, only 10 billion yuan has been allocated by the central government.

At the same time, vague rules for irrigation system property rights in villages makes it hard for these facilities to get financing needed for maintenance. Especially since the agricultural tax reform of 2004, local financing for village-level irrigation facilities has rapidly declined. Statistics show a decrease of about 70 billion yuan every year since 1998. And farmers have been unwilling to pay additional irrigation tariffs.

In 2006, MWR investigated water prices in 551 major irrigation areas in 26 provinces. It found the average price for agricultural water was 0.065 yuan per cubic meter in 2005, covering barely 38 percent of system costs, while the average water tariff covered only 57 percent.

By subsidizing irrigation projects, central and local governments hope to eliminate inefficiencies. But the plan’s success hinges on the pricing mechanism. If the price is too low, farmers may not conserve water, and maintenance funds will be harder to find. But if the price is too high, farmers may balk at paying or push grain prices higher.

Challenges Ahead

Although irrigation water is cheap, it still helps dictate the price of grain. A 2006 survey by MWR said water prices makes up 5 percent to 20 percent of grain costs, depending on the region.

Some scholars fear higher water tariffs may be too hard for farmers, especially since prices of fertilizer and fuel are rising quickly at a time when domestic grain prices are set below international levels. Some say grain production may decline.

In fact, some farmers have already left irrigated areas or switched to low yield crops that demand less water. A scholar at the Chinese Academy of Agricultural Sciences, Jiang Wenlai, suggested that water price reform should take into account factors including production costs, profits, income levels, and estimates of how much cost a farmer can bear.

At the same time, local water management agencies are posting huge losses due to current water price rules. Statistics show that 8,250 of the country’s 32,960 management agencies reported losses totaling 3 billion yuan in 2006.

Experts agree that, in the long run, water shortages will force water prices to rise, and agricultural water use will be no exception. Some experts say if rising water costs can’t translate into higher grain prices, farmers should receive support subsidies.

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