CIRCLES June 18, Richard Berkland VALMONT IRRIGATION Valleyirrigation.com

Transcription

1 CIRCLES June 18, 2014 Richard Berkland VALMONT IRRIGATION Valleyirrigation.com 1

2 Pivot development in Western U.S. 2

3 Hectares Irrigated by Method - USA Source: 1998, 2003, 2008 Farm and Ranch Irrigation Surveys USDA, National Agricultural Statistics Service (2012 estimates by Valmont Irrig.) 3

4 Why did the U.S. convert to center pivot irrigation? Lower initial investment cost than comparable irrigation systems Lowest operational cost Easy to manage and maintain Long life between 20 to 30 years Crop versatility High water efficiency Preferred method for leaching soil salinity 4

5 πr 2 = Area of a Circle 100 Meter Radius = 3 hectares 200 Meter Radius = 12 hectares 300 Meter Radius = 28 hectares 400 Meter Radius = 50 hectares 500 Meter Radius = 78 hectares Source: Valmont Irrigation 5

6 Cost Per Hectare Pivot and Water Supply Sweet Spot Source: Valmont Irrigation 6

7 Billions of Gallons/Day Millions of Hectares U.S. Center Pivot Irrigated Hectares vs. Total Irrigation Water Usage * 0 Total Irrigation Withdrawals Pivot Irrigated Hectares *Data not released yet Sources: USDA Farm and Ranch Survey, USGS Estimated Use of Water in the United States in

8 American Food Expenditures 30 Percent of Income Spent on Food Sources: Nat. Assoc. State Univ., and Land Grant Colleges 2007 and U.S. Dept. of Ag

9 Bushels per Acre Risk Mitigation Corn Yield in Nebraska Rain fed 2012 Rain fed 2011 Irrigated 2012 Irrigated 9

10 South America 16,060 5% Global Pivot & Linear Population (Operational) 7 Span Equiv. Machines - Total Installed Base Asia 6,893 2% Australia/Oceana 6,831 2% 342,630 Total Machines Worldwide (50 ha. average) Middle East 20,346 6% Europe 23,202 7% North America 244,290 71% Africa 25,008 7% Note: Asia does not include the Middle East countries of Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Syria, Turkey, United Arab Emirates, Yemen Source: Valmont Irrigation 2/15/

11 11 Cotton North America

12 12 Oranges South Africa

13 13 Rice North America

14 14 Coffee - Brazil

15 15 Pasture New Zealand

16 Irrigation vs. Rainfed Dry land Irrigated land FAO Irrigation and Drainage Paper #33, Yield response to water. 16

17 Center Pivot irrigation systems are a proven irrigation technology 1.5 Million Hectares in Sub-Saharan Africa use CP farming CPs achieve up to 90% water efficiency, and are cost-effective for plots >30 ha. O&M requirements are 1-2% of CapEx; asset life is years. Average CP repayment period for large commercial farmers in Africa is <2 years 17 Source: Valmont

18 Individual Small Vegetable Fields Inside of One Large Pivot in Kenya 18

19 Commercial farmers in Africa achieve 4-10 times the yields of smallholders Why? Smallholders already small plot sizes are shrinking over time due to shifts in land use and tenure Limited access to markets, including postharvest equipment and information Reliance on rain-fed agriculture Focus by NGOs & governments on least cost technologies that provide incremental rather than transformative benefit Sources: Wiggins, S Can the smallholder model deliver poverty reduction and food security for a rapidly growing population in Africa? Paper for the Expert Meeting on How to feed the World in 2050, Rome. World Census of Agriculture (FAO), World Development Report (2008), internal findings. 19

20 Introducing CIRCLES CIRCLES goal is to demonstrate how smallholder farmers can dramatically increase net household income by farming under Center Pivot irrigation, with: Organization: Empowering farmers and their communities Finance: Flexible, affordable credit and opportunity to build equity Markets: Access to local, regional, and export markets Technology: Access to proven technology CIRCLES goal: household incomes in areas where CIRCLES operates see increases from US$1-2/day to US $4-6/day 20

21 CIRCLES Model Social Capital: Water management, business skills, productive agriculture Learning: Monitoring, Evaluation, Adaptive Management Integration with local, regional, and export markets 3x increase in net hh income Communities own assets when they re paid off Technology CP Irrigation Finance: Loans & Working Capital Market-oriented Grant-supported Community-led agricultural productivity An exit strategy for INGO 21 Market Access: Value Chain Provider Smallholder Farmer Transformation CIRCLES supports farmers to organize themselves to use water more effectively and efficiently with highly efficient irrigation for more productive agriculture, and to gain business skills to support a transformation from subsistence to commercial farming practices.

22 Valmont Responsibilities Site selection Irrigation and pump equipment Turnkey installations Community water supply design Training, service, and support of equipment once installed Technology Foundation Irrigation Technology Foundation Irrigation 22

23 World Vision Responsibilities Commercial production teams Commercial villages Community engagement and empowerment Savings groups / Community safety net WASH programming Business facilitation the business of farming Partnership facilitation Human Empowerment 23

24 Vision Fund Responsibilities Medium-term loan (5 years) for irrigation equipment (center pivot, pump, borehole) Seasonal credit for crop inputs and agriculture loan products ( micro ) Small commercial farmer payments to be made in kind from production delivered Leasing Seasonal Credit 24

25 Value Chain Provider Responsibilities Crop Plan / Inputs / Harvest Forecasts Market Assessments / Availability Farm Management / Planting Supervision Harvest Plan / Transport / Crop Grading Crop Storage / Cold Chain Market Engagement / Fair Price Sales Additional Investments / Mechanization Value Chain Provider 25

26 Daugherty Water for Food Institute Responsibilities Site Water and Soil Analysis Water Extraction Impact Monitoring and Reporting Institutional Support Local Academic Collaboration Best Practices Learning 26

27 CIRCLES approach Phased and pragmatic: 1. Demonstrate the model is financially and socioeconomically viable in real-world conditions 2. Replicate proven model through World Vision s SSA operations 3. Support adoption by others for wide-spread scale CIRCLES approach includes market priming, research, and learning at all levels and across all phases to support adaptive management and informed decision making. 27

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29 Pivot Map Total Hectares 1 st tower area = 1.38 Ha Block A = 0.5 Ha Block B = 0.85 Ha Block C = 1.2 Ha Block D = 1.54 Ha Block E = 1.88 Ha Block F = 0.79 Ha Total 6.76 per sector 29

30 30 Case for Multiple Use

31 31 Community Water System

32 What Makes this Concept Unique? Addresses the root cause of poverty, which is a lack of income. Satisfies a community s total water needs: irrigation, domestic, and livestock. Communities pay for the capital assets through a leasing program this is not a gift program. The total value chain is provided for the transition from a subsistence mindset. Driven by private, NGO, and academic collaboration. 32

33 33 Thank you!