Drought often limits agricultural production in the semi-arid part of the Prairies and sometimes in other areas. Droughts may become more frequent and severe as a result of global warming. The availability of water for expanding both irrigated agriculture and large-scale livestock production, especially in western Canada, may also be limited. Groundwater, where available, is not always of suitable quality for these types of farming. Expansion of intensive livestock operations may be curbed by concerns for the impact of manure on water quality.
Environmental liability is an issue of growing concern to farmers.
Economic and environmental policies to protect water quality may limit agricultural growth. The technologies needed to improve environmental performance are not all now available or affordable for farmers.