Summary
Strategies for balancing supply and demand while improving efficiency and accessibility by exploring dynamic pricing approaches for agricultural water abstraction.
The Challenge
Agriculture is a major water user, and abstraction pressures are increasing as climate variability and demand intensify. Dynamic pricing has the potential to influence how water is used, stored, and valued, but the best approaches are not yet understood.
This challenge aims to:
- Identify best practice options for abstraction pricing to support efficient agricultural water use
- Review policies and practices worldwide that manage agricultural abstraction demand
- Analyse international best practice and lessons learned
- Develop targeted and localised communications to support farmer engagement and uptake
Potential Impact
- Farmers adapt or modify crop choice in response to abstraction pricing
- Incentives for farmers to create on‑site water storage
- Improvements in irrigation practices through better education and price signals
Barriers to Progress
- Political pressures and resistance from farmers
- Existing licence regimes, which make reform complex and difficult
Timeframe
Medium term (6–18 months)
Call to Action
Members are encouraged to:
- Submit ideas on effective dynamic pricing models, international examples, or communication strategies
- Endorse promising ideas contributed by others
- Comment with insights from farming, policy, or water‑resource management experience
- Join a project team in the next stage to explore options and co‑develop a feasible pricing framework