Irrigation pivots in Southern Alberta - LNN

By Dori Modney

New study finds irrigation contributes $5.4 billion annually to Alberta GDP

Nov 23, 2021 | 2:35 PM

LETHBRIDGE, AB. — It`s information that is certainly not lost on Southern Alberta farmers, who have a first hand understanding of the value of irrigation.

However, a new study sets out exactly how much of an impact irrigation makes on Alberta`s annual Gross Domestic Product (GDP).

The Alberta Irrigation Districts Association commissioned a study – the Economic Value of Alberta’s Irrigation Districts and it was completed by Acera Consult Inc. The study re-examined the benefits of irrigation within Alberta’s 13 irrigation districts and found irrigation’s annual contribution to provincial GDP increased over previous information published in 2015.

Alberta’s Irrigation districts, situated within the South Saskatchewan River Basin, represent the most diversified and intensive irrigation development in Alberta, with 83-per cent of the province’s irrigated land found within the 13 irrigation districts.

The value of irrigation has been particularly important during periods of low precipitation, to help provide dependable crops. The study findings included the years from 2011 to 2018 and found that within irrigation districts, $5.4 billion was generated annually to provincial GDP. Of that, $3.2 billion was labour income that supported about 46,000 full-time equivalent positions.

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Irrigation districts represent only 4.4% of Alberta’s cultivated land base but generate 27% of the province’s total primary agricultural sales and contribute 28% of Alberta’s total agri-food GDP.

Alex Ostrop, Chair Alberta Irrigation Districts Association, points out the province`s historic total investment of $933 million in irrigation infrastructure funding as one of the major supports of irrigation.

“Ongoing infrastructure rehabilitation along with on-farm efficiency improvements and crop diversification have been key to growing the irrigation sector to support economic, societal and environmental priorities. Districts, irrigators and the provincial government have been collaborating for many years to ensure investments in the system support the entire irrigated region.”

Key findings of the study:

— The average irrigated area within the 13 irrigation districts during the study period was 560,520 hectares (1,385,075 acres) which represents 4.4-per cent of Alberta’s cultivated land base.

— A total annual contribution of $5.4 billion to provincial GDP (up from an annual contribution of $3.6 billion during the period 2000 to 2011), $3.2 billion in labour income, and supporting about 46,000 full-time equivalent positions.

— Combined irrigated crop and livestock production plus related food processing contributes 28% of Alberta’s total agri-food GDP.

— Combined annual sales of irrigation crop and livestock products contribute 27-per cent of the total primary agricultural sales in Alberta.

— Irrigated specialty crop sales contribute $500 million annually, almost half of the total revenue from all irrigation crop sales.

— Irrigation livestock sales of $2.2 billion represent 38-per cent of Alberta’s total livestock sales.

— Irrigated crop and livestock production generates 8 times more revenue per hectare than dryland.

— GDP multipliers indicate that for every $1.00 of irrigation output the total provincial GDP increases by $1.62.

— An annual contribution of $102 million to the provincial GDP from activities related to operation, maintenance and rehabilitation of irrigation infrastructure.

The study found that for every $1.00 invested by the Government of Alberta on irrigation district related activities returned $3.56 in added revenue to Alberta.

Although the federal Government did not provide any direct funding to infrastructure rehabilitation during the study period, irrigation related activities generate about $1.057 billion in annual fiscal revenues to the Government of Canada.