Policy makers will increasingly rely on irrigation pricing strategies and markets to motivate improvements in water management and to improve resource allocation. Farm-level costs will increase, but innovative management and wise use of technology will enable farmers to adjust in ways that generate greater value from limited water resources. Looking forward, farmers in the United States and elsewhere must adjust to rising energy costs and increasing water scarcity. While the outlook for agricultural prices is uncertain, recent increases in food prices suggest that crop prices might be notably higher in some years.