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Photo: Alfo Medeiros
Agriculture Agriculture is the largest water user, contributing to the extreme water depletion in the Colorado River Basin. However, out of the 17 companies in this report with operations and supply chains in the region, only a handful have publicly acknowledged the risks they are facing.
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Read More »The Colorado River Basin, which extends into seven U.S. states, two Mexican states, and 29 federally recognized tribal reservations, provides water to almost 40 million people and a $5 billion agricultural industry. The watershed is under tremendous pressure not simply from the demands of rising food production and growing cities, but also from extreme weather. This combination has serious implications for the current and future state of agriculture. For the last 20 years, the Colorado River Basin has been in a severe drought, with the period between May and April 2021 the driest on record. Due to persistent high temperatures that increase evaporation and decrease snowpack, the river’s flow is expected to drop by 20% in the next 30 years. These extreme fluctuations in the Colorado River’s flow were not accounted for when water rights agreements were first drafted, resulting in more water being allocated than can be accounted for. Consequently, from 2000 to 2015, water consumption exceeded the total river flow three-quarters of the time. In August 2021, the federal government declared a water shortage in the basin for the first time ever. Anticipating water reductions for the lower basin states has already led some farmers to leave fields fallow or switch to less water intensive crops, while others will increase groundwater pumping. Agriculture uses approximately 80% of the Colorado River’s water, using it to irrigate 15% of the nation’s farmland, and produce 90% of the winter vegetables. Wheat, corn, berries, and fresh produce are likely to be particularly strained by supply rationing to manage water-stress, as well as the crops, including alfalfa and hay, used by farmers to feed cattle. A recent study found that the largest consumer of river water in the Western U.S. is irrigation for cattle-feed crops. Companies and investors have a unique opportunity to respond to water risks in their operations and supply chains within the Colorado River Basin, advocate for sustainable and resilient water policies, and ensure sustainable water management.
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