BSEF 2013 agriculture Aaron Schapper

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BSEF 2013 agriculture Aaron Schapper

  1. 1. Creating Value Through Irrigation Black Sea Economic Forum 2013 Aaron Schapper VP & GM International Irrigation
  2. 2. Sustainability – Water Sources All Water Freshwater 3% Ice Caps Agriculture Uses 66% of Available Freshwater Available Freshwater 33% Industry and Domestic 33% of Available Freshwater
  3. 3. Water: The Limiting Resource • • • • Source: UN FAO 2011 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.
  4. 4. Irrigation vs. Rainfed Dry land Irrigated land FAO Irrigation and Drainage Paper #33, “Yield response to water.”
  5. 5. Irrigation Market Segments Drip Green House High Value Crops <30 Hectares Mechanized Tree Crops Vegetables Sugar Cane Cereal Grains Large Open Fields >30 Hectares Irregular Plots Potatoes Efficiency: 75- 95% Efficiency: 75 - 95%
  6. 6. USA – Irrigation Methods Hand Move 3% Hand Move 2% Traveler 1% Permanent 3% Side Roll 3% Traveler 1% Permanent 2% Side Roll 3% Drip 8% Drip 4% Pivot/Linear 35% Flood 33% Pivot/Linear 51% Flood 50% 1998 (20M Ha.) 12% of Cropland 6 2012 (23M Ha.) 15% of Cropland
  7. 7. Risk Mitigation Corn Yield in Nebraska 200 180 180 190 Bushels per Acre 160 140 132 120 100 80 59 60 40 20 0 2011 Rain fed 2012 Rain fed 2011 Irrigated 2012 Irrigated
  8. 8. Risk Mitigation Soybean Yield in Nebraska 70 61 60 2011 Irrigated 2012 Irrigated Bushels per Acre 60 50 47 40 30 25 20 10 0 2011 Rain fed 2012 Rain fed
  9. 9. Agricultural Land Values in Nebraska $8,000 [$2320] $7,000 CAGR = 24.7% $6,000 $ / Acre $5,000 Irrigated Land - Center Pivot $4,000 $3,000 [$958] Dryland with Irrigation Potential $2,000 $1,000 $2009 2010 2011 2012 2013 University of Nebraska – Lincoln Extension, Institute of Agriculture and Natural Resources, March 20 2013
  10. 10. Ag Land Values Nebraska by Land Grade $8,000 $2,786 $7,000 $2,151 $/Acre $6,000 $5,000 $1,668 $1,445 $4,000 $3,000 Irrigated Center Pivot $1,276 $954 Dryland Irrigation Potential $2,000 $1,000 $2009 2012 Low Grade 2009 2012 Ave Grade 2009 2012 High Grade “Nebraska Farm Real Estate Market Highlights”, 2011-2012 Bruce Johnson, University of Nebraska, Department of Agricultural Economics, June 2012, Report No.191
  11. 11. Source: Kansas State University, (2012) 12
  12. 12. Irrigated Area per Span Span 1—1.0 Ha Span 2—2.9 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 13Source: Valmont
  13. 13. Cotton – North America
  14. 14. Oranges – South Africa
  15. 15. Soybeans – North America 16
  16. 16. Rice – North America 17
  17. 17. Potatoes – North America 18
  18. 18. Coffee – Brazil 19
  19. 19. Pasture Land – New Zealand 20
  20. 20. Sugar Cane - Mauritius 21
  21. 21. Multi-User Pivot – Kenya
  22. 22. Thank you! 23

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