Agcapita Agriculture Update
2	 Water	Update
3	 Crops	and	Development	Compete
for	Land	–	2	Acres	per	Minute
4	 U.S.	Feeds	One	Quarter	of	its
Grain	to	Cars
4	 Energy	Analysis	of	Food
As	people	in	the	emerging	economies	of	India	and	China	make
the	transition	to	western	standards	of	living	there	is	an	often-
overlooked	issue	-	their	water	consumption	will	rise	dramatically,
exacerbating	an	already	precarious	domestic	supply	situation.
–	 China	has	only	8	percent	of	the	world’s	fresh	water	to	meet
the	needs	of	22	percent	of	the	world’s	people.
In	India,	urban	water	demand	is	expected	to	double—and
industrial	demand	to	triple—by	2025.
–	 To	support	the	diets	of	the	additional	1.7	billion	people
expected	to	join	the	human	population	by	2030	at	today’s
average	dietary	water	consumption	would	require	2,040	cubic
kilometers	of	water	per	year—as	much	as	the	annual	flow	of
24	Nile	Rivers.
–	 According	to	the	International	Water	Management	Institute
the	key	agriculture	regions	of	the	south-western	US,	Pakistan,
western	Australia,	southern	Africa	and	southern	India	are	all
already	water	constrained	begging	the	question	how	they	will
increase	production	from	this	point	forward.
Seventy	percent	of	the	grain	produced	in	China	comes	from
irrigated	land,	but	the	country	is	seeing	its	irrigation	supply
depleted	on	three	fronts:	the	diversion	of	water	from	rivers
and	reservoirs	to	cities;	the	depletion	of	underground	supplies
in	aquifers;	and	the	increasing	pollution	caused	by	rapid
industrialization.		Economically,	farms	can’t	currently	compete
with	factories	for	water.	A	thousand	tons	of	water	produces	one
ton	of	wheat,	which	has	a	market	value	of	around	$300,	whereas
the	same	amount	of	water	used	in	industry	yields	an	estimated
$14,000	of	output	-	70	times	as	much.
The	challenge	facing	China	is	how	to	meet	the	water	needs	of	its
swelling	urban	and	industrial	sectors	without	undermining	both
its	own	agricultural	productivity.	China	is	facing	a	dec