To achieve water management goals and to face changing climatic conditions water authorities and farmers need to work together. Successful water management partnership with farmers depends on appropriate institutional, economic and governance arrangements.

In the expert network and Delft workshop on financial methods the Aquarius partners shared their knowledge and experiences for identifying the financial barriers to successful water management partnership and developing solutions for farmers to act as sustainable water managers according to what is most profitable for them.
 
The design of successful water management partnership with farmers is determined to a great extent by the characteristics of a country or region: institutions, types of measures, spatial characteristics.

The Aquarius partners identified four financial key methods, e.g. Green and Blue Services concept, Capital maintenance, Market oriented model and (Social) Insurance model. The (dis)advantages of these financial methods were discussed taking into account the agri-environmental measures to prevent flooding, water shortages and leaching of nutrients, the farmers’ interest and the European legislation (Good Agricultural Practices (GAP), State aid, Minimis aid, Community guidelines).

It is concluded that there need to be more synergy between Agricultural and Environmental policies. Clusters or packages of Agri-environmental measures or Green and Blue services should match with the characteristics of a country or region, farmers’ interest and water management. Water management need to be a commercially interesting activity for farmers. A combination of government subsidies and private money may be necessary to keep the farmers as food producers and as landscape and water managers in the region.

Download the report on financial methods here.

Watch the video from the workshop on financial methods here.