In times of crisis, innovation can be the great equalizer. As the region reaches crisis-level water scarcity problems, innovations in farming and agriculture may just be a saving grace as we seek solutions for the growing water shortages in the western United States.

The Precision Agriculture Loan (PAL) Act, bipartisan legislation introduced by Senators Deb Fischer (R-Nebraska) and Amy Klobuchar (D-Minnesota), helps make funding accessible to farmers and ranchers, and assists in purchasing precision agriculture technology and equipment. This technology and equipment – things such as auto guidance, precision irrigation, machine section control, variable rate application and fleet telematics – will enable major strides in farming operations’ efficiency and yields. As a bonus: it will also have a major impact on the environment by making farming operations more climate-friendly.

Though precision agriculture has many benefits, perhaps most notable is the potential impact on water conservation. The reservoirs on the Colorado River provide water for nearly 40 million people, and its water levels are reaching dangerously low levels. Analysis in the draft Colorado Water Plan suggests that in fewer than 30 years, water shortages could be significant enough to impact 500,000 to 1.5 million homes in Colorado. Even more shocking, those estimates do not account for the anticipated 35% to 77% climb in water demand by 2050.

The current trajectory of water usage is unsustainable.

Now, as local, state and federal governments alike struggle to find solutions to this growing crisis, residents in these areas are left shouldering the burden through policies like water restrictions.

Precision agriculture systems help provide a remedy that can aid in this problem. Through precision irrigation systems, calculated water levels are directed to targeted areas, reducing the amount of water wasted and ultimately leading to significant strides in water conservation efforts. According to a recent study by the Association of Equipment Manufacturers, this technology has already saved what amounts to an estimated 750,000 Olympic-sized swimming pools of water.

Overall, these precision technologies could result in more than a 20% decrease in water usage from current levels. The adoption of these practices could also aid in water quality improvements through the ability to make advancements in areas such as reducing runoff.

By providing farmers and ranchers the opportunity to implement these cutting-edge technologies, America is investing not only in our future but in the present.

Notably, the microloans and minimal interest rates provided through the PAL Act give farmers and ranchers more purchasing power to obtain new precision agricultural equipment while also enabling them to retrofit existing equipment so they can continue producing high-quality crops for an affordable rate.

As the senior vice president of customer experience at AGCO, I can speak firsthand about the positive benefits the PAL Act will have on the entire agriculture industry and in helping to solve real problems that threaten our communities. With decades of work in the agriculture industry, I am acutely aware of the improvements to cost, efficiency and production that the innovative precision agriculture equipment and technology will provide to lead farming through the challenges of the 21st century.

As the western United States faces critical issues like water scarcity, the PAL Act will provide farmers and ranchers with an opportunity to bring much-needed resources to the agriculture industry and help to meet the growing needs and demands of our economy and environment.

Robert Crain, senior vice president, customer experience of AGCO