en.Wedoany.com Reported - Juan Baraldo, an economist at the Agricultural Planning and Policy Office (Opypa) of Uruguay's Ministry of Livestock, Agriculture and Fisheries (MGAP), presented the evaluation results of the "Joint Strategy for Productive Water Use" (EAAP) at the "Irrigation Experience" seminar. Implemented under the MGAP framework since 2010, this strategy aims to enhance agricultural competitiveness, promote sustainable intensification, and adapt to climate change. The evaluation analyzed the technical, productive, and economic outcomes of eight 15-year projects, using a 7.5% discount rate for cost-benefit calculations.
Overall, the total cost-benefit ratio was 1.3 based on fattening valuation and 1.2 based on dairy valuation, with corresponding internal rates of return of 11.1% and 10.4%, respectively. Significant variations were observed among projects: some had returns exceeding 29%, while others showed negative values due to fewer evaluation seasons or management difficulties. After deducting public financing, analyzing only from the perspective of own funds, the overall cost-benefit ratio rose to 2.6, with an internal rate of return of 67.3%, reflecting the leveraging effect of state subsidies on private investment.
The program is coordinated by MGAP, the National Institute for Agricultural Research (INIA), the National Dairy Institute (Inale), the Colonization Institute, the Bank of the Republic of Uruguay (BROU), the University of the Republic (Udelar), and the National Water Directorate (Dinagua), inviting various organizations to submit collective water use proposals. Project evaluations are conducted through regular standardized monitoring. Baraldo noted that successful projects were driven by well-organized institutions with loyal producers and leaders, and received continuous technical support from project formulation through monitoring. Collaboration between producer organizations and public institutions was identified as a key factor.
Baraldo also pointed out that the model works well in the pastures of the Colonization Institute and suggested exploring private or mixed financing mechanisms to promote such initiatives.
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