A State approach to ensuring the long term viability of irrigated farming areas of Victoria

Bryony Grice Manager Sustainable Irrigation

Main types of irrigated agriculture in northern Victoria

Horticulture

• Primarily in Northern Victoria (GMID and Sunraysia)

• Non-interruptible – due to no substitutes for water, fixed plantings

• Gross value of farm production $1.1 billion in 2007/08

• A number of major processors including Sunbeam, SPC Ardmona, Unilever

• Over 8,700 people employed directly in farming and processing (2005-06)

Dairy

• Primarily in GMID• Semi-interruptible –

purchased fodder and water sales can replace pasture, but not always profitable

• Farm gate production $873 million (07/08)

• 15 dairy factories operated by five major companies

• Over 7,000 people employed directly in farming and processing

• 30% of Victoria’s milk production, 20% of national production

• Water entitlement holding valued at $2.62 billion

Crops & Fodder

• Primarily in GMID• Interruptible – farmers can

irrigate or sell water• Hay and silage crops

produce fodder for dairy industry

How is water use changing?2005 water availability and use

Allocations Murray Goulburn

2004/05 100% 100%

How is water use changing? 2008 water availability and use

Allocations Murray Goulburn

200708 43% 57%

Water market facilitating change Trend in increased trade of allocation

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Problem of variable water availability

Less reliable entitlements for all• Urban water users

– Longer, more frequent and more severe water restrictions• Irrigators

– Zero allocations, no delivery of water, no effective carryover trade• Groundwater and upper catchment users

– Increased time on restrictions/bans, increased groundwater use, less reliable farm dams, higher proportion of water captured in farm dams

• Environment– Less frequent floods, loss of river red gum forest, fewer bird breeding

events, fewer native fish, degraded wetlands Trees

Solving the Problem – A Sustainable Water Strategy

Ingredients include:

1. Science – to inform (not drive) decision-making and to help defend decisions

2. Plan manager – to provide conceptual framework, drive collaboration and engagement processes

3. Regional delivery agents – to ground-truth information and decisions to make sure plan in able to be implemented

4. Community champions – to help make sure impacts of decisions are included in plan and make sure community members are engaged.

Reforming Water to enable growth

• Modernisation– GMID/Sunraysia– Environmental manager and works

• Water register – Security of entitlements– Probity– Efficient transactions

• Enhanced water products – Unbundling (trade of allocations critical)– Carryover/Spillable water account maximise flexibility, protect entitlements

Key tools for adapting & risk managementfor all entitlement holders

Modernisation – a total approach

• Institutions

• Markets & entitlements

• Investment in modernising public infrastructure

• Investment in modernising private (on farm) infrastructure

Irrigation Modernisation Outcomes

• Smarter, more efficient and effective use of water

• Viable system which is affordable to users in the future

• One that supports the irrigator but also the community

A Total Approach

• More than the public system is important:– Drainage– Farm use– Impacts on third parties and environment – Legacy of history cost– Supplying world food demand

• A total approach enabling irrigators to make the best product possible to meet growing demands