Influence of policy making in the profitability of forage production irrigated with reclaimed water

Abstract

The limited availability of water at low prices and the current scheme for specific supply arrangements (SSA/REA), both determined at the political level, explain that the goal of being self-sufficient in terms of forage consumption is currently unattainable in the Canaries. The "PFORCA" Plan aims to counteract this reality and increase their level of self-sufficiency. The financial aid relating to the REA reduces the amount payable for the imported fodder (annual 83,000 t) versus local product, which influences the decision making by farmers. According to calculations, performed by reusing the water instead of discharging, Maralfalfa production could be competitive against imports, being financially viable with water prices in a range of 0.20-0.30 €/m3 (prices perfectly acceptable for reclaimed water with low levels of treatment, but fulfilling requirements reuse of Spanish law, RD 1620/2007). The economic contribution of forage crops could represent the creation of 640 new jobs, the enhancement of land currently abandoned, plus an increase in Gross Domestic Product (GDP) of the archipelago on more than 23 million € (M€), product of the substitution of imports by local production. Also, it would help to save the REA's aid (6 M€).