Agriculture Reference
In-Depth Information
managed through dedicated institutions like water user associations called - Associations
Syndicales Autorisées d'irrigation (ASA) - and regional water companies called -
Sociétés d'Aménagement Régional (SAR). We should notice that there is an increasing
number of farmers who have both individual and collective access to water through wells
that are drilled in large collective schemes. This phenomenon is recognised all over the
world (Shah, 2000) and has had a number of (negative) consequences for the design of
water charging in irrigated schemes. Furthermore, conflicts around water are less frequent
in those collective irrigation systems than in basins where irrigation has been developed
on an individual basis. The new water law is supposed to lower the charges for those who
are in collective systems.
Tariffs
Principles
A water charging system has to be designed in accordance with the general objectives
that are defined by the public authority and with the specific objectives of the water
service. That means that the manager will be in charge of the design of the pricing system
in co-ordination with users and representatives of the agriculture and environment
departments. This pricing system is implemented by the water service manager. In
France, the charging system is merged within a legal framework, i.e., mainly the water
law and now the WFD. The main objectives to be reached are the following :
balance the budget in order to maintain a good quality of service and to ensure the
sustainability of hydraulic infrastructures,
provide users with information about water scarcity through its price and avoid wastage,
support the agricultural sector through local subsidies and the consent of the farmers.
The normal way for reaching this is to negotiate and obtain public support from national
or local authorities, for the investments linked to large infrastructures (dams, canals,
pumping stations).
As a result price is discussed between three main actors: the state (including the basin
agency), the project manager and representatives of farmers (Tardieu, 2000). The
outcome of this negotiation process, that is frequently bilateral, is a design from the
demand side or the supply side; i.e., what the users are willing to pay. The main pricing
structure in France is established along these lines even though in reality supply and
demand are combined.
Supply
The price of water is derived normally from the cost, namely for projects that are
managed by water users' associations. Using an average cost is the usual way to establish
the rate of subsidy for an investment for public and /or local authorities. From the total
financial cost and the life duration of the infrastructure, an annual average cost per
hectare is derived and compared to the willingness to pay from farmers, taking into
account cropping patterns and some market conditions. Secondly, the water users'
association keeps this rationale of average cost and defines a water price in light of the
different situations. This type of pricing is really easy to understand and to present to the
members.
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