Irrigated agriculture is one of the most important factors of intensified development of agricultural production that ensures higher and more stable yields irrespective of a negative effect of climate. Potential of irrigated land in the area of risk farming is proven by indicators of land use under this category and higher productivity of irrigated hectare as compared to non-irrigated one. The key element of irrigated agriculture is its high capital and resource intensity against other sectors of agricultural production. This causes high degree of anthropogenic impact on natural environment. In the Russian Federation, water diversion for irrigation amounts to one fourth of the total water use in national economy, and most of this irrigation water (97.8 % in 2010) is used consumptively. Moreover, the effectiveness of irrigation water use is well lower in our country than in the European Union and the United States. According to the data for 2010, about 3,000 m3 of water were used for production of one ton of grain in Russia, whereas this indicator was 1,300 m3 in Poland, 1,000 m3 in USA, 790 m3 in Great Britain, and 660 m3 in France. As compared to the level of the year 1990, resource intensity of national irrigation and drainage sector has increased more than two-fold, while this indicator remained the same in USA and decreased 1.7 times in Great Britain.  

Foreign and national practices indicate to high effectiveness of mechanisms combining economic and administrative tools in environmental management and conservation.

One of the main causes of low effectiveness of water use in irrigated agriculture in the Russian Federation is the lack of charges for the use of irrigation water by respective enterprises. The Concept of the Federal Target Program “Reclamation of agricultural land up to 2020” determines transfer to water use charging as the most important area of irrigated agriculture development in the near future. Thus, a need for development and justification of the system of irrigation water charging in the Russian Federation has determined the theme of our analytical review and its relevance. 

The issues related to improvement of relationships between agriculture and water sector under market conditions need to be solved in light of optimal final environmental and economic results in these sectors.