This report conducted by the Organisation for Economic Co-operation and Development (OECD) focuses on water management and its relation to agriculture, floods and droughts. The reports gives detailed summaries and recommendations of how OECD nations can address and improve their water management as outlined in the following sub categories:

• Recognise the complexity and diversity of managing water resources in agriculture
• Strengthen institutions and property rights for water management in agriculture
• Ensure charges for water supplied to agriculture at least reflect full supply costs
• Improve policy integration between agriculture, water and environment policies
• Enhance agriculture’s resilience to climate change and climate variability impacts
• Address knowledge and information deficiencies to better guide water resource management

The report opens by addressing the enormous challenge to produce 50% more food in the year 2030 and double production by 2050.  The increased stress on water supply due to the impact of climate change, urbanisation and industrialisation causes concern for global food security. Consequently, farmers and policy makers will need to adhere to the right signals to ensure water efficiency is increased and water management is improved. These signals can be:

• Institutional constraints
• Water availability
• Price of obtaining water

Recognising the complexity of managing water resources from a policy maker’s perspective, a ‘one size fits all’ policy will not work and will need to be diversified. Diversification will need to be tailored and targeted in terms of a country’s situation and its surrounding environmental, social and economic needs. The report recognises that institutions are complex due to the multi layering of governing bodies for example federal, state and local governments may have clashing policies when dealing with water allocation. This calls for more flexibility with policies so that water allocation can become more responsive to changes in the environment and economy and ensure that these demands are satisfied.

The cost of water rarely reflects the scarcity and social value of water which indicates inefficiencies within water markets. The report recommends improving policy integration between agriculture, water, energy and environmental policies. Policies related to water supply often do not adequately consider their connection to other policies and their unintended consequences. For example, an agricultural policy linked to production and inputs, such as water and energy, can encourage the less efficient use of water and energy. Resulting in negative externalities such as off-farm pollutions and soil degradation. Future policy cohesion is suggested as best practice for the management of resources and to prevent harmful environmental consequences.

It is important for water managers to allocate water resources efficiently and equitably. This report provides in depth analysis of the interdependence of water and agriculture and the challenges that arise due to the increase in the proportion of economic, social and environmental needs as the world grows in population.

1. Water resource management has shown some signs of improvement but more needs to be done so that the world can cater to the growing population.
2. Agriculture is the major user of water resources accounting for 70% of the world's fresh water withdrawals and over 40% of OECD countries' total water withdrawals. The report recommends increased water efficiency in this sector.
3. Many OECD countries are reporting an increase in the severity in the costs of flood and drought events on agriculture due to the events of inappropriate land management practices and policies.
4. Policy implementation needs to be underpinned by improving the measurement of water use and availability, as well as the development of research, knowledge, training and advice.
5. There is a lack of transparency in the information about water supply costs with the development of water markets and the planning of water allocation. More precise information on the costs and benefits of agriculture is needed so that informed and effective policy can be created.
6. As climate change worsens, there needs to be a build up of resilience in the agriculture sector such as additional water storage tanks and other precautionary measures so water availability can be maintained and agriculture can continue.
7. Agriculture policy needs to be integrated with other sub categories such as water and energy so that the efficiency and effectiveness of policy is improved.
8. This report provides excellent recommendations to the agricultural sector and its relation to the use of water, these can be found on pages 9 -11 for a brief outlook and on pages 16 - 24 for a more detailed description.