Water Sustainability Indicators in Arizona’s Small Grains Industry
Small grains production (wheat and barley) in Arizona plays a strategic role in high-value specialty crop systems, as well as in providing feed for the state’s livestock industries. Furthermore, shifts away from relatively higher water use field crops towards vegetable-small grains rotations have enabled growers to achieve high economic productivity of water use in major agricultural regions of the state. This study analyzes the economics of small grain production in Arizona, including as part of rotational vegetable-small grains production systems in arid regions. The report provides an overview of small grains production in the state, including industry structure, farm characteristics, geographic distribution, and market trends. From there, the study provides an extensive analysis of water use in Arizona small grains production, comparing water use intensity, productivity, efficiency, and economic productivity to other crops and growing regions. This includes the development of updated water footprint measures for Arizona durum wheat production. Finally, the report presents an economic contribution analysis for Arizona’s small grains industry, estimating direct sales and resulting economic multiplier effects.
What did the study find?
In 2024, Arizona’s small grains industry has a statewide economic contribution of $120 million in sales, $54 million in Gross State Product, and more than 460 jobs (including multiplier effects).
- Arizona’s small grains industry had direct sales (output) of $56.7 million in 2024. Of the total, $45.9 million came from durum wheat and $10.7 million came from barley sales.
- Including multiplier effects, the value added (Gross State Product) generated by small grains was nearly $54 million in 2024. ·
- The production of durum wheat and barley directly and indirectly supported 466 jobs, of which 149 jobs were directly in small grain production, and 316 were in other Arizona industries.
Small grains production in Arizona is achieved with comparatively high levels of water use efficiency and productivity relative to other crops and other regions.
- In 2023, Arizona growers applied 3.4 acre-feet / acre of water to wheat on average and 3.3 acre-feet / acre to barley. This is 17% and 20% below the statewide average of over 4.12 acre-feet/acre across all crops, respectively.
- Over the last 40 years, Arizona growers have greatly increased the amount of grain they can produce per acre-foot (AF) of water applied. In 1984, growers produced 25.7 bushels of wheat for every AF of water applied. By 2023, this increased 18% to 30.3 bushels / AF. Arizona growers produced 30.6 bushels of barley / AF of water applied in 1984. This figure rose 31% to 40 bushels / AF applied in 2023.
- Shifts towards high-value vegetable-small grain rotations in areas of the state have improved economic water productivity. Water consumption for a wheat/lettuce rotation is 32 inches per acre, while it is 38 inches per acre for a wheat/broccoli rotation. These rotations have replaced citrus, cotton, and alfalfa cropping patterns that consume 50 to 72 inches of water per acre.
Water footprints measure how much water is consumed in the production of commodities or provision of services. Blue water footprints measure the use of groundwater and surface water for irrigation. Green water footprints measure the consumption of rainfall. Finally, grey water footprints measure the water needed to assimilate pollutants generated in production, in this case, nitrogen. We estimated blue, green, grey, and total water footprints for Arizona durum wheat production.
- Arizona durum wheat had a lower total water footprint than 80% of global river basins producing wheat. Arizona’s footprint was 29-42% below the global average for irrigated wheat.
- Arizona durum wheat has a lower green water footprint than any of 26 major wheatproducing countries or across the 220 river basins analyzed. This is due to the low rainfall levels that characterize regions of the state that produce durum wheat. · We developed 15 combined green-blue water footprint estimates across Western and Central Arizona. Of these, 14 were below the 20th percentile across all wheat production globally, meaning that 80% of global wheat production used more water per unit of wheat produced. The remaining estimate was below the 25th percentile, meaning that 75% of global wheat production used more water per unit of wheat produced.
- Arizona’s grey water footprint (measuring water needed to assimilate nitrogen from fertilizers reaching water bodies), in contrast, was greater than the global average. There are a variety of fertilizer management practices that can allow growers to better match nitrogen fertilizer applications to plant nutrient requirements in durum wheat production. Improving fertilizer management in Arizona durum wheat production has the potential to be a win-win strategy, both improving farm profitability and water quality
How was the study done?
We estimate efficiency measures for water use in Arizona small grain production, such as water application intensity, water productivity, water economic productivity, and water footprints, drawing from a series of federal data sources and academic publications. To estimate the economic contribution of the small grains industry to Arizona's economy, we rely on federal agricultural statistics, as well as the IMPLAN Pro model for Arizona to estimate economic multiplier effects.