Harnessing Digital Technologies for Smarter Water Management in Agriculture 2025

The increasing frequency of extreme weather events, particularly heatwaves and droughts, has also intensified weather instability and unpredictability, posing significant challenges for agricultural operations. In recent years, drought- affected areas have experienced a 10% decline in agricultural yields during severe weather conditions,17 while uncertain climate patterns have already led to significant declines in yields for crops such as wheat, maize, rice and soybeans.18 Such disruptions jeopardize the consistency of the food supply chain, resulting in economic instability for countries where agriculture is a key part of the economy. Conventional agricultural systems lack the adaptability to respond to this increasing climate variability. Critically, they overlook the role of natural processes such as infiltration and transpiration to help retain moisture and support an effective water cycle. These ecosystem functions are disrupted through land degradation or poor water management, causing increase in evaporation and runoff. In certain regions, local communities have created nature-based solutions (NbS) to contribute to water resilience, such as glacier grafting, which uses seasonal water storage and regulated meltwater discharge to decrease runoff and enhance groundwater recharge.20 Embracing these approaches offers essential context for pinpointing where technology can be best positioned to complement them. Digital tools offer a pathway to drive efficiency by enabling faster, more informed decisions across agricultural systems. Rather than replacing conventional practices, these solutions enhance them, making water usage more precise, adaptable and resilient. Digital solutions provide valuable insights for smarter water management in agriculture, for example: –IoT-driven real-time tracking of soil moisture levels. –AI-enhanced predictive analytics that optimize irrigation schedules. –Satellite imaging and remote sensing that improve evaluations of water availability in freshwater resources. –Automation and precision irrigation systems that ensure optimal application of water in agricultural fields. –AI-driven crop planning models that assist farmers in choosing water-efficient crops tailored to specific climate and soil conditions. –Digital monitoring that supports rainwater harvesting by pinpointing the best collection and storage techniques. The integration of these technologies empowers agricultural operations to make informed, data-driven decisions, reduce water loss and build resilience in response to changing water availability.By 2035, severe heat and water scarcity are expected to lead to yearly fixed asset losses ranging from $42-45 million for an average agribusiness firm depending on the emissions scenario, highlighting the urgent necessity for effective water management strategies.19 World Economic Forum Digital tools offer a pathway to drive efficiency by enabling faster, more informed decisions across agricultural systems. 10% decline in agricultural yields in drought- affected areas Harnessing Digital Technologies for Smarter Water Management in Agriculture 8