CIRCLES
June 18, 2014
Richard Berkland
VALMONT IRRIGATION
Valleyirrigation.com
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Pivot development in Western U.S.
2
Hectares Irrigated by Method - USA
Source: 1998, 2003, 2008 Farm and Ranch Irrigation Surveys
USDA, National Agricultural Statistics Service (2012 estimates by Valmont Irrig.)
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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
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
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Source: Valmont Irrigation
Cost Per Hectare
Pivot and Water Supply
Sweet Spot
Source: Valmont Irrigation
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U.S. Center Pivot Irrigated Hectares
vs. Total Irrigation Water Usage
155
12
150
10
8
140
135
6
Millions of Hectares
Billions of Gallons/Day
145
130
4
125
2
120
115
0
1970
1975
1980
1985
1990
Total Irrigation Withdrawals
1995
2000
Pivot Irrigated Hectares
2005
2010*
*Data not released yet
Sources: USDA Farm and Ranch Survey, USGS “Estimated Use of Water in the United States in 2005”
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American Food Expenditures
Percent of Income Spent on Food
30
25
20
15
10
5
0
1920
1940
1960
Sources: Nat. Assoc. State Univ., and Land Grant Colleges 2007 and U.S. Dept. of Ag 2009
8
1980
2000
2012
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
9
2012 Rain fed
2011 Irrigated
2012 Irrigated
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)
South America
16,060
5%
Middle East
20,346
6%
North America
244,290
71%
Europe
23,202
7%
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
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Source: Valmont Irrigation
2/15/2012
Cotton – North America
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Oranges – South Africa
12
Rice –North America
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Coffee - Brazil
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Pasture – New Zealand
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Irrigation vs. Rainfed
Dry land
Irrigated land
FAO Irrigation and Drainage Paper #33,
“Yield response to water.”
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Center Pivot irrigation systems are
a proven irrigation technology
1.5 Million Hectares in Sub-Saharan Africa use CP farming
•
•
•
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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 25-30 years.
Average CP repayment period for large commercial farmers in Africa is <2 years
Source: Valmont
Individual Small Vegetable Fields
Inside of One Large Pivot in Kenya
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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. 2009. 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.
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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
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CIRCLES Model
Grant-supported
Social Capital: Water
management, business skills,
productive agriculture
Learning:
Monitoring,
Evaluation, Adaptive
Management
≥3x increase in net
hh income
Communities own
assets when
they’re paid off
Finance: Loans
& Working
Capital
Technology
CP Irrigation
Market-oriented
Integration with
local, regional,
and export
markets
Community-led
agricultural
productivity
Market Access:
Value Chain
Provider
An exit strategy
for INGO
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.
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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
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World Vision Responsibilities
•
•
•
•
•
•
•
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Commercial production teams
Human
Commercial villages
Empowerment
Community engagement and empowerment
Savings groups / Community safety net
WASH programming
Business facilitation – the business of farming
Partnership facilitation
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
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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
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Daugherty Water for Food Institute
Responsibilities
•
•
•
•
•
•
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Site Water and Soil Analysis
Water Extraction Impact
Monitoring and Reporting
Institutional Support
Local Academic Collaboration
Best Practices
Learning
CIRCLES approach
Phased and pragmatic:
1.
2.
3.
Demonstrate the model is
financially and socioeconomically viable in real-world
conditions
Replicate proven model through
World Vision’s SSA operations
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.
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Pivot Map
55.46 Total Hectares
1st 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
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Case for Multiple Use
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Community Water System
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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.
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Thank you!
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