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Influence of Policy Making in the Profitability of Forage Production Irrigated with Reclaimed Water

1
Dpto Producción Animal, Grupo Investigación GEOVOL, Universidad de Las Palmas de Gran Canaria, Fac. Veterinaria, Arucas 35013, Spain
2
Departamento de Economía y Dirección de Empresas, Facultad de Ciencias Económicas, Universidad de Alcalá, Alcalá de Henares 28802, Spain
*
Author to whom correspondence should be addressed.
These authors contributed equally to this work.
Academic Editor: Andreas Angelakis
Water 2015, 7(8), 4274-4282; https://doi.org/10.3390/w7084274
Received: 13 April 2015 / Accepted: 28 July 2015 / Published: 4 August 2015
(This article belongs to the Special Issue Study, Development and Management of Water in Volcanic Areas)
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€). View Full-Text
Keywords: Pennisetum sp; reclaimed water; financial aid; forage production; Gross Domestic Product Pennisetum sp; reclaimed water; financial aid; forage production; Gross Domestic Product
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Palacios-Diaz, M.D.P.; Mendoza-Grimón, V.; Garcia, A.D.V. Influence of Policy Making in the Profitability of Forage Production Irrigated with Reclaimed Water. Water 2015, 7, 4274-4282.

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