Productivity, in simple terms, is the measurement of the efficiency of a machine, factory, or person in converting inputs into useful outputs. To calculate productivity, the average output for a period is divided by the costs incurred or resources such as personnel used during that period. Accordingly, agricultural productivity is also measured as the ratio of agricultural outputs to inputs.

There is a difference between the concepts of "production" and "productivity." The former refers to the output, while the latter refers to the normalized output per unit of input. If production is measured in kilograms and one of the inputs, such as land, is measured in hectares, then the productivity of land would be measured in kilograms per hectare.

Plains are the most fertile agricultural areas. Erosion of mountains occurs when rivers pass through the slopes of mountains. The eroded materials are carried by the flowing river, and sedimentary materials such as silt, clay, and rocks accumulate in the valleys. As a result of this process, plains are formed.

Efficient Agriculture in the World

The world has 15.749 million square kilometers of arable land. Among these, India has the largest arable land area in the world, followed by the United States, Russia, China, and Brazil. On the other hand, the top agricultural producers in the world are led by China, which is simultaneously the largest producer, importer, and consumer of food globally. India is the second-largest food producer in the world, followed by the United States and Brazil.

On the other hand, the most important high-yielding varieties (HYVs) are wheat, maize, soybeans, rice, potatoes, and cotton. They are widely used in commercial farms and agricultural fields. HYVs became popular in the 1960s and played a significant role in the Green Revolution.

However, productive areas, according to the concept of productivity, depend on the amount of crop production and inputs. These areas consist of farms with varying performance histories. A farm with the highest yields for several seasons is considered a high-productivity region, which can be either sustainable or unsustainable. The San Joaquin Valley in California, United States, is considered the most productive agricultural region in the world, where more than 250 crops are grown.

Water productivity in agriculture

Water is a vital input for agricultural production and plays an important role in food security. Based on this, two types of agriculture have been formed: irrigated and rainfed. Rainfed agriculture relies on rainfall, and the amount of rainfall must be sufficient to effectively support the cultivation process. Irrigated agriculture, in addition to green water, uses blue water diverted from irrigation systems to irrigate crops.
Irrigated agriculture accounts for 20% of the total cultivated land and 40% of all food produced worldwide. This type of agriculture typically produces at least twice as much per unit of land compared to rainfed agriculture, thus enabling increased production and crop diversification.
Water productivity is generally defined as the yield per cubic meter of water consumed, and this water can include green water (effective rainfall) for rainfed areas, as well as both green water and blue water (diverted water from irrigation systems) for irrigated areas. Therefore, water productivity refers to the grain yield relative to the total water supplied. To calculate water productivity, the amount of irrigation water and rainfall must be measured as the total water input.

Water market and water productivity in agriculture

Given the growth of the population, urbanization, and climate change, competition for water resources is expected to increase, particularly impacting agriculture. It is predicted that the global population will rise to over 10 billion by 2050, and this population, whether urban or rural, will need food and fiber to meet their basic needs. Along with an increase in calorie consumption and more complex foods, which accompanies rising incomes in developing countries, agricultural production is estimated to increase by nearly 70% by 2050.

However, future water demand across all sectors will require the allocation of 25 to 40 percent of water from lower productivity and lower employment activities to higher employment activities, especially in water-stressed areas. In most cases, due to the high share of agriculture in water consumption, such reallocation is expected to take place through agriculture. Currently, agriculture (on average) accounts for 70% of total freshwater withdrawals globally (with a larger share resulting from "consumptive water use" due to evaporation and transpiration of crops).

In this situation, water reallocation must occur both physically and virtually. Physical movement of water can take place through changes in the initial allocation of surface and groundwater resources, primarily from agriculture to urban, environmental, and industrial users. Water can also move virtually as the production of water-intensive food, goods, and services concentrates in water-abundant areas and is exchanged with water-scarce regions.

The reallocation of water between sectors and the significant movement of water from agriculture should be accompanied by improvements in water use efficiency and advancements in water delivery systems. Improving water use efficiency in agriculture also depends on aligning improvements in the core system (outside the farm) with the right incentives for farm investment aimed at improving soil and water management. Such options require advanced systems in the water delivery sector to provide sufficient services according to demand, as well as the use of advanced technologies (such as soil moisture sensors and satellite evapotranspiration measurements) to enhance water efficiency and productivity in agriculture.

The water market is one of the methods that has been developed globally over the past two decades to transfer water from lower productivity areas to agricultural or industrial sectors with higher productivity. Water transfer through the water market is an economic tool that can improve the efficient use of water by transferring water to consumers whose marginal water productivity is higher. Water market prices serve as an economic signal indicating marginal productivity and, on the other hand, act as an incentive for farmers to increase the water use efficiency on their farms.

Poraab Company, with the design of the operational guideline for the water market as part of the Sustainable Balanced Plain Model project, implemented the water market for the first time in the country in the Khaf plain. Following the successful implementation of the water market project in Khaf, the project was launched in other plains across the country, taking into account the climatic, environmental, and social conditions of each plain. Currently, the water market project is being implemented not only in Khaf but also in the Qazvin plain, where water share transactions between agriculture and industry, as well as within the agricultural sector, are taking place. The project has also been initiated in the Semnan province.