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Dryland Rural Drainage Resource Kit

© The State of Victoria Department of Environment, Land, Water and Planning 2018

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ISBN 978‑1‑76077‑300‑7 (Print) ISBN 978‑1‑76077‑301‑4 (pdf/online/MS word)

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Aboriginal acknowledgement

The Victorian Government proudly acknowledges Victoria’s Aboriginal community and their rich culture, and pays respect to their Elders past and present. We acknowledge Aboriginal people as Australia’s first peoples and as the Traditional Owners and custodians of the land and water on which we rely. We recognise and value the ongoing contribution of Aboriginal people and communities to Victorian life, and how this enriches us. We embrace the spirit of reconciliation, working towards equality of outcomes and ensuring an equal voice for Aboriginal Victorians.

ii Dryland Rural Drainage Resource Kit

This Dryland Rural Drainage Resource Kit delivers on a commitment in the Victorian Rural Drainage Strategy to provide landholders with the tools and information they need to understand their options for managing dryland rural drainage.

The Drainage Resource Kit will:

• Support landholders to make choices about how they manage dryland rural drainage

• Provide the information required to manage dryland rural drainage under the arrangements described in the Victorian Rural Drainage Strategy

• Help landholders to understand their obligations and the approvals processes for drainage works.

Specifically, it includes:

• An overview of the ways landholders can manage dryland rural drainage and the support available to them (Part 1 – Frequently asked questions, Part 2 – Processes for landholders to undertake drainage works, and Part 3 – Roles and responsibilities for rural drainage)

• A technical tool to help landholders consider the likely costs and benefits of investing in improved dryland rural drainage (Part 8 – What are the likely financial costs and benefits?)

• Information about landholders’ obligations to obtain approvals for drainage works (Part 4 – Approvals for rural drainage)

• Guidance for landholders on getting the best value for money from drainage works, while also minimising the possible impacts of drainage works (Part 5 – Choosing a drainage engineer or earthworks contractor)

• Information about the legal arrangements for establishing drainage committees and the options for governance structures (Part 6 – Preparing a rural drainage management plan)

• Options for dispute resolution (Part 7 – Managing disputes).

The resource kit will continue to be developed and refined as more information becomes available and knowledge is acquired from a number of pilot projects underway across the state.

Dryland Rural Drainage Resource Kit 1

Contents

1. Frequently asked questions 1:1

2. Processes for landholders to undertake drainage works 2:1

3. Roles and responsibilities for dryland rural drainage 3:1

4. Approvals for rural drainage 4:1

5. Choosing a drainage engineer or earthworks contractor 5:1

6. Preparing a rural drainage management plan 6:1

7. Managing disputes 7:1

8. What are the likely financial costs and benefits? 8:1

2 Dryland Rural Drainage Resource Kit

1. Frequently asked questions

Victorian Rural Drainage Strategy Drainage Resource Kit 1:1

Q. What is dryland rural drainage?

A. Drainage that benefits agriculture in dryland (not irrigated) regions outside of urban areas. It is the works and functions related to the collection, and timely removal, of excess water generated by high rainfall to support agricultural production. It involves enhancing the hydraulic capacity of drainage lines and soils to ensure water will flow off (or through) and away from land, to support increased agricultural production in dryland areas.

What types of works can I (or my neighbours) do?

Q. I seem to have more water on my land every year. What can I do about it?

A. First you will need to assess what is causing the increased flows. Has there been increased rainfall or has a neighbour undertaken works that have led to more water flowing onto your land? If it is due to increased rainfall you may wish to consider implementing a new drainage system (or re-establishing an old system) under the framework described in the Victorian Rural Drainage Strategy. See Part 2 – Processes for landholders to undertake drainage works.

Q. Can I drain the wet area or wetland in my paddock?

A. Potentially yes, but you will need to discuss this with your council to meet land use planning regulations and your relevant catchment management authority due to the potential environmental impacts. Works such as this also may have impacts on cultural heritage values, and you will need to contact the relevant Registered Aboriginal Party to discuss. Your local council will be able to advise on who this is. It should be noted that draining of a recognised wetland is unlikely to be supported based on the impact of drainage on the environmental values of these natural features.

Q. Can I block a drain to flood my wetland? It’s been dry and the plants need water. Is my neighbour allowed to block the drain on their property?

A. This will depend on a number of factors. Will blocking the drain cause flooding upstream or cut off water supply to downstream? What is the natural state of the wetland? Does it need water year-round or is it naturally seasonal? Will it require decommissioning of established works? To undertake these works you are likely to need planning approvals from your council and a works on waterways permit from your catchment management authority. You may also need a take and use licence from your regional water authority if you plan to collect and use the water (see Part 4– Approvals for rural drainage) The catchment management authority will also be able to advise you on the potential environmental benefits or potential impacts of the proposed works.

Q. Is my neighbour allowed to build a new drain?

A. Yes, if they obtain the appropriate approvals and do not cause an unreasonable flow of water across property boundaries.

What are the roles and responsibilities for rural drainage?

Q: How can councils support dryland rural drainage?

A: Councils will provide support to the community to manage the ongoing arrangements for dryland rural drainage. This will include administrate support such as collecting fees for management and maintenance of dryland rural drainage. Councils' role in dryland rural drainage management is critical as they:

• Have responsibilities to manage infrastructure such as bridges, roads and culverts

• Consider approvals for earthworks

• Manage compliance with the approvals for earthworks.

Q. Who do I need to consult about my drainage works?

A. Local councils and catchment management authorities are the key regulating agencies for rural drainage works. They will be able to advise you on most matters regarding approvals or direct you to the appropriate body. You should also discuss any plans with neighbours who may be impacted by the works.

Q. I want to maintain the drain alongside the council road. Do I need permission to do this?

A. Yes, you will need to discuss this with your council.


1:2 Dryland Rural Drainage Resource Kit


Q. I have a floodgate on Crown land that protects my property but needs repair. Who is responsible for this gate?

A. The maintenance of drainage infrastructure and levees is the responsibility of the beneficiaries of the system. Where floodgates have been installed in a levee to support the functioning of a drainage system the beneficiaries of this system are responsible for its upkeep and maintenance. The landholder can apply to their catchment management authority for a permit to undertake works where floodgates are in a levee on Crown land.

Approvals

Q. How can I assess the likelihood of success of getting approval for my proposed works?

A. Contact the relevant regulatory authorities to discuss your proposal, what works you wish to undertake and what the impacts may be. Landholders and drainage committees should expect that:

• Drainage works must be carried out in line with existing obligations pertaining to the environmental and cultural impacts of those works

• Draining natural wetlands (such as swamp or marsh) to establish new drainage areas will generally not be supported, now that we have a greater understanding of the value of these environmentally sensitive areas

• Extra effort may be required to demonstrate that works will be undertaken in an environmentally sensitive way where drainage works could affect:

– Ramsar wetlands

– Flagship waterway sites

– Wetlands and waterways by:

> Changes in watering regimes

> Impact on ecological values (this would also apply to a cumulative effect on ecological values), including:

– Native vegetation (trees, shrubs and grasses)

– Aquatic and/or terrestrial fauna

– Aquatic and/or terrestrial habitat

– Water quality and/or quantity.

• Where a greater level of effort is required to consider applications for environmental approvals, approvals may still be granted. But more detailed investigations may be necessary to ensure potential impacts from drainage works have been considered and the impacts avoided or minimised.

Q. What considerations should be taken into account if I am undertaking works on existing drainage channels?

A. Often, agricultural drains are the only remaining habitat from a wet landscape. This habitat is often the last refuge for plant and animals, or it can provide connectivity between wetlands and rivers.

Undertaking drainage works and changing the flow of water in the landscape can cause a range of negative impacts. This can include the key environmental impacts of loss of habitat or refuge for plants and animals, and reduced connectivity between wetlands and rivers, as well as:

• Erosion

• Soil acidification

• Increased sedimentation and reduced water quality

• Flooding of upstream and downstream neighbours

• Damage to public and private infrastructure (such as roads, culverts and bridges)

• Damage to culturally significant sites.

Q. What is the benefit in protecting cultural heritage?

A. By protecting these assets you ensure that they are available for future generations. This can also support Traditional Owners and Aboriginal Victorians to find out more about their past and to share knowledge.

For example, as landholders in the Seven Creeks area near Euroa increasingly realised that the prime objective of Traditional Owners, the Taungurung, relating to cultural heritage was to find out more about their past and not to impede development, more and more landholders willingly shared information about artefacts they found.

Q. Will the presence of cultural heritage impact on my works?

A. Possibly, but it will not necessarily prevent you from doing works. It is advised that you consider and plan for the potential impacts to cultural heritage as early as possible. You may, for example, be issued with a permit to harm by the Registered Aboriginal Party. If the works will cause significant ground disturbance and are in an area of cultural heritage sensitivity as defined by the Aboriginal Heritage Regulations 2007, you may be required to undertake a Cultural Heritage Management Plan.

Dryland Rural Drainage Resource Kit 1:3


Q. My drains are blocked with saplings. What can I do?

A. You may remove this vegetation as part of your drain maintenance. However, you may need to obtain a permit from the relevant agency (see Part 4 – Approvals for rural drainage), depending on the age of the vegetation, or when it was last cleared. With native vegetation that has naturally established or regenerated on land lawfully cleared and is less than 10 years old, a permit is not required for it to be removed, destroyed or lopped (this also applies to bracken of any age). This exemption does not apply to land where native vegetation has been destroyed or otherwise damaged as a result of flood, fire or other natural disaster. For more information see the Victorian Guidelines for the removal, destruction or lopping of native vegetation or talk your local council.

Q. What do I do if a permit application is rejected?

A. It may be possible to modify your proposed works to meet permit requirements. If this is unsuccessful, you have the right to appeal the decision through the Victorian Civil and Administrative Tribunal.

What can I do if I have a dispute with a neighbour?

Q. My neighbour has no interest in our shared drainage. What can I do?

A. The best course of action is to come to an agreement with your neighbour for alternative management arrangements. For example, you may be able to come to an agreement where your neighbour allows you to access the drains to undertake maintenance but does not provide a financial contribution to the system. It is recommended that these agreements are formalised to help with managing any future disputes.

Q. My neighbour has done works that seem to have caused water to flow across my land. What can I do? Or my neighbour is blocking the drain on their property and I’m not getting water. Can someone investigate this?

A. There are a range of options available to manage the dispute, depending on the nature of the dispute (see Part 7 – Managing disputes). If a neighbour’s actions lead to a change to the flow of water that causes harm, this may be in breach of the Water Act 1989. You are encouraged to work with your neighbour to resolve these disputes. If you are unable to resolve the issue with your neighbour you can undertake free arbitration through the Dispute Settlement Centre of Victoria. If this is unsuccessful you may choose to take a more formal approach to dispute resolution through the Victorian Civil and Administrative Tribunal, where results are enforced but costs are involved.

If the change of flow is caused by unauthorised works on a designated waterway, your catchment management authority may be able take action. If it is caused by unauthorised earthworks, your council may be able to assist.

Q. How do I get landholders who are no longer paying their drainage subscription to contribute to drainage management?

A. Formal agreements can help manage disputes within drainage systems. Whether this can be used to collect unpaid fees will depend on the mechanism used to set and collect financial contributions in your drainage agreement. For example, if the drainage fees are paid as a special rate under the Local Government Act 1989, the drainage fee will be pursued in the same manner as the non-payment of any other council rate. If your drainage agreement is formalised under the Water Act 1989, unpaid fees are deemed a civil debt that can be recovered through the courts.

The guidelines for developing drainage management plans will provide information on the options for making formal drainage agreements, how to distribute the costs for managing the drainage system, and the mechanisms and legislation to use for the collection of funds.

In some circumstances you may be able to compel a neighbour to participate in a drainage system using legislative tools such as a drainage course declaration or water management scheme. However, these tools require significant effort and support from the community and government agencies, are rarely employed and are not always successful in being implemented (see Part 7 – Managing disputes)



What support is there for landholders?

Q. Who is going to pay for works on the drain?

A. It is the responsibility of the beneficiaries of the drain – individuals or groups whose properties will be inundated less often than would have been without the drainage works – to fund and manage drainage maintenance.

Q. Is there assistance available to implement the drainage system?

A. Landholders who are willing to work together to manage and maintain their drainage system, and be responsible for the ongoing costs, will be supported by their catchment management authority to develop a drainage management plan. If landholders agree to pay for management and maintenance and to formalise their system under a written agreement that is ideally attached to title, they will be eligible for support from their council to collect and manage funds, facilitate meetings and commission works.

Q. Do I/we need a formal drainage agreement?

A. While you are not required to have one, a written agreement between all stakeholders can help prevent future disputes and ensure that all parties are aware of their roles and obligations in managing the system. If the agreement is linked to land titles, this will ensure that any future landholders within the system are aware of its operation and their obligations.

Q. What tools are available to me to support the development and management of my drainage? Where can I find them?

A. This drainage resource kit will be available from your local council. The kit contains the information you require to manage your rural drainage under the contemporary arrangements. The drainage resource kit includes:

• An overview of the ways landholders can manage rural drainage and the support available to them

• A technical tool to help landholders consider the likely costs and benefits of investing in improved rural drainage

• Information about landholders’ obligations to obtain approvals for drainage works

• Guidance for landholders on how to get the best value for money from drainage works, while also minimising the possible impacts of drainage works

• Information about the legal arrangements for establishing drainage committees and the options for governance structures

• Options for dispute resolution.

Q. What are the rural drainage pilot projects? What are they doing?

A. The eleven pilot projects will address regional rural drainage issues and test the implementation of the strategy across the state. The projects are being led by catchment management authorities in partnership with agencies and community stakeholders. The projects will guide the transition to contemporary arrangements for dryland rural drainage management in the regions through coordinated management arrangements that are fit for purpose; supported by landholders; minimise government liability; and provide certainty for all stakeholders (refer to map overleaf).



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2. Processes for landholders to undertake drainage works



Landholders have four main pathways to improve their drainage arrangements.

Where dryland rural drainage is confined to one property, it can continue to be managed by a single landholder.

Where dryland rural drainage crosses property boundaries, and where landholders can agree to manage their drains collectively, they can do so through:

• Non-written agreements;

• Written agreements; or

• Written agreements with administrative support from government agencies.

Regardless of the pathway taken, the initial process for all landholders is the same (see diagram below).

Landowners will be encouraged to enter into formal agreements to preserve management arrangement and reduce disputes.

Single landholder Numerous landholdersNumerous landholders

seeking support to collectively manage drainage

Contacts councilLandholder

Supplies drainage resource kit Council

Landholders

Reviews kit, determines (if any) action is required and gauges support for action

Landholder

Landholders agree action needs to be taken

Individuals or groups of landholders can manage their rural drainage independently, with guidance from the drainage resource kit. If a group of landholders wish to establish a formal drainage committee, they will be eligible for administrative support and guidance from agencies if:

1. The need to manage the drainage system has the support of landholders who benefit from the drainage system – that is, those landholders whose land is inundated or waterlogged less often than it would be without dryland rural drainage

2. The landholders benefiting from the drainage system agree to pay for the maintenance and administrative costs of the system

3. The benefiting landholders are willing to participate in a formally constituted local drainage management committee

4. The formally constituted drainage committee holds appropriate insurance.



Landholders and drainage committees should expect that:


• Draining natural wetlands (such as swamp or marsh) to establish new drainage areas will generally not be supported now that we have a greater understanding of the value of these environmentally sensitive areas.

Individuals or groups of landholders can manage their rural drainage independently, with guidance from the drainage resource kit. If a group of landholders wish to establish a formal drainage committee, they will be eligible for administrative support and guidance from agencies if:

1. The need to manage the drainage system has the support of landholders who benefit from the drainage system – that is, those landholders whose land is inundated or waterlogged less often than it would be without dryland rural drainage

2. The landholders benefiting from the drainage system agree to pay for the maintenance and administrative costs of the system

3. The benefiting landholders are willing to participate in a formally constituted local drainage management committee

4. The formally constituted drainage committee holds appropriate insurance.

The following flow diagrams outline the processes for landholders in more detail, whether they are undertaking works individually or collectively (with or without formal agreements).


Project does not proceed in its current form.Where to from here?Landholder considers alternatives in order to meet approval requirements

Project does not proceed.

Seek approvals from relevant agency: council, catchment management authority or Department of Environment, Land, Water and Planning

The landholder(s) collect the resource kit from council

Are approvals granted?

Landholder undertakes works and

manages drainage

YES

YES

NO

Single landholder

Landholders contact council regarding dryland drainage

NO

Does landholder agree to be responsible for the ongoing liability and cost of managing the works?

Are approvals required?

YES

NO



Community meeting with all affected landholders and agencies

Project does not proceed in its current form.Where to from here?Landholder(s) consider alternatives in order to meet approval requirements

Project does not proceed in its current form. Where to from here? Landholders may undertake further investigation to demonstrate the need for works, and engage with parties to seek support for a proposal

Or

Reconsider how works can be designed to only include parties who are willing to participate



The landholder(s) contacts other landholders in drainage area to determine if action is supported

Landholders will be encouraged to enter into

formal agreements to preserve management

arrangements and prevent disputes into the future

Landholders will be encouraged to enter into

formal agreements to preserve management

arrangements and prevent disputes into the future

Drainage management plan developed with support from catchment management authority if required


Landholders and other infrastructure owners undertake works and

manage drainage according to their drainage

management plan

YES

YES

NO

Numerous landholders – amicable agreements

Landholders contact council regarding dryland drainage

NO

NO

YES

YES

Do all parties (including infrastructure owners) agree drainage works are required?


NO

Do landholders agree to work together amicably to fund and manage drainage works and agree to be responsible for the ongoing liability, management and maintenance of the system?



Community meeting with all affected landholders and agencies

Arrangements outlined in the drainage management plan are formalised

Project does not proceed in its current form.Where to from here? Landholder(s) consider alternatives in order to meet approval requirements

Project does not proceed in its current form.Where to from here?Landholders undertake further investigation to demonstrate the need for works, and engage with parties to seek a suitable arrangement where there is support for the proposal.

Or

Reconsider how works can be designed to only include parties who are willing to participate.



The landholder(s) contacts other landholders in drainage area to determine if action is supported

Drainage management plan developed with support from catchment management authority if required


Landholders and other infrastructure owners undertake works and manage drainage in

accordance with drainage management plan

Drainage works undertaken in accordance with the

drainage management plan. Ongoing formal support from

council for drainage committee (with cost

recovery)

YES

YE

S

NO

OR

NO

Numerous landholders – formal agreements

Landholders contact council regarding dryland rural drainage

Do landholders agree to be responsible for the ongoing cost, liability, management and maintenance of the system?


NO

NO

YES

YES

Do all parties (including infrastructure owners) agree drainage works are required?



3. Roles and responsibilities for dryland rural drainage


All agencies and landholders will continue to be responsible for the management of drainage assets vested in them, and for the management of any of their assets that interact with dryland rural drainage systems, unless the process enabled through this strategy requires new arrangements that are agreed among the relevant stakeholders. An overview of these roles and responsibilities is provided in the table. Detail about how these roles will be supported can be found in the Victorian Rural Drainage Strategy.

Stakeholder Clarified roles

Landholders • Manage private dryland rural drainage and develop dryland rural drainage management plans.

• Fund ongoing management and maintenance of drainage systems and infrastructure. • Determine management arrangements for their specific drainage systems (including

developing dryland rural drainage management plans where appropriate).• Identify other landholders willing to participate in agreements to manage dryland rural

drainage systems (where appropriate).

Councils • Provide first point of contact for landholders with dryland rural drainage inquiries, including providing tools and information to landholders so they can understand their options for managing drainage.

• On request, convene meetings of affected landholders, with support from all relevant agencies, to determine the landholders’ willingness to prepare a dryland rural drainage management plan and enter into formal drainage arrangements.

• Provide administrative support to landholders with formal drainage arrangements, including facilitating meetings, commissioning works (if requested to do so) and the collection and acquittal of funds where appropriate. For example, the collection of administrative fees to develop dryland rural drainage management plans and ongoing operational fees.

• Manage dryland rural drainage assets vested in them.• Manage the interaction between their assets and dryland rural drainage – in particular,

drainage through road culverts and/or beside road reserves (table drains).• Consider planning permit applications and ensure compliance with permit approvals. This will

include considering applications supported by the relevant components of dryland rural drainage management plans. Approval will be considered where plans meet approved objectives and standards for planning permit applications.

• Work with government agencies such as catchment management authorities and the Department of Environment, Land, Water and Planning to help landholders who cannot reach agreement.

Catchment management authorities

• Support landholders to develop dryland rural drainage management plans where landholders are prepared to pay for the service.

• Identify opportunities to improve drainage management for environmental and cultural benefit.

• Lead pilot studies in partnership with other government agencies.• Manage dryland rural drainage assets vested in them. • Consider arrangements for unmanaged infrastructure on waterways where ownership is

unknown.• Consider permit applications for works on waterways and ensure compliance with approvals

for such permits, while providing technical approval for relevant components of drainage management plans where plans meet approved objectives and standards.

• Work with government agencies such as the Department of Environment, Land, Water and Planning and councils to help landholders who cannot reach agreement.

Table continued next page u



Stakeholder Clarified roles

Department of Environment, Land, Water and Planning

• Prepare tools and templates to support landholders. • Build capability for agencies and landholders in dryland rural drainage to deliver the

outcomes for the strategy. • Attend meetings.• Report on the delivery of the strategy (including provision of information on actively managed

systems), and review and support adaptive management to deliver the outcomes in this strategy.

• Provide funding for pilot studies.• Simplify the approvals process for works to establish or maintain dryland rural drainage.• Consider applications for dryland rural drainage (where the department is the relevant

referral authority – i.e. for Crown land consent and native vegetation removal regulation).• Work with government agencies such as catchment management authorities and councils to

help landholders who cannot reach agreement.

Melbourne Water • Provide regional drainage services within its waterway management district.• Develop and implement plans related to dryland rural drainage.• Share with catchment management authorities the lessons it has learned in its role in helping

to manage the Koo Wee Rup and Longwarry drainage area.

Rural water corporations

• Regulate the take and use of water.• Manage infrastructure and drainage associated with irrigation in regulated districts.• Continue to provide drainage services, mostly in northern Victoria, where dryland rural

drainage infrastructure drains into irrigation district infrastructure, or where dryland rural drainage has been established in or near an irrigation area, and existing arrangements are in place for landholders to pay for these services.

VicRoads and Victrack

• Manage infrastructure that interacts with dryland rural drainage (except where the infrastructure is licensed to third parties).

Registered Aboriginal Parties

• Provide cultural heritage approvals and manage compliance with those approvals (with the support of compliance officers).

• Clarify expectations about how agencies and landholders need to consider cultural heritage in drainage management.

Traditional Owners and Aboriginal Victorians

• Partner with catchment management authorities, where appropriate, to identify opportunities to improve drainage management for cultural benefit.



4. Approvals for rural drainage


Approvals for rural drainage

The flow diagram on the next page outlines the existing and proposed new processes for obtaining approvals to undertake rural drainage works. A key initiative in the Victorian Rural Drainage Strategy is to simplify the approvals application process for rural drainage. It should be noted that all existing requirements will remain.

Will your proposed drainage works potentially affect any of the following? Yes No

• Aboriginal heritage sites (including intangible Aboriginal heritage)

• Crown land

• Rare and threatened flora, fauna and vegetation communities (including all Matters of Natural Environmental Significance) as specified under the Australian Government Environment Protection and Biodiversity Conservation Act 1999

• Native vegetation, including native vegetation in waterways

• Adjacent landholders or land as a result of changes in water flows across property boundaries, and potentially across catchment boundaries

• Waterways on which works are proposed to be carried out

• Other water users associated with taking and using water related to drainage works (Section 67 works licence and section 51 take-and-use licence under the Water Act 1989).

You may be required to seek approvals if you answered yes to any of the above questions, or if you are unsure. When planning to undertake works, landholders and drainage committees should expect that:


• Draining natural wetlands (such as swamp or marsh) to establish new drainage areas will generally not be supported now that we have a greater understanding of the value of these environmentally sensitive areas.

Extra effort may be required to demonstrate that works will be undertaken in an environmentally sensitive way where drainage works could affect:

• Ramsar wetlands

• Flagship waterway sites

• Wetlands and waterways by:

– changes in watering regimes

– impact on ecological values (this would also apply to a cumulative effect on ecological values), including:

> Native vegetation (trees, shrubs and grasses)

> Aquatic and/or terrestrial fauna

> Aquatic and/or terrestrial habitat

> Water quality and/or quantity.

The following diagram outlines the various permits that may potentially be required to undertake drainage works and the agencies that are responsible for providing these approvals. As shown in this diagram, support is now available for landholders to develop a dryland rural drainage management plan to simplify the approvals process. The process to develop a dryland rural drainage management plan will be facilitated by catchment management authorities. Part 2 of this drainage resource kit – Processes for landholders to undertake drainage works, outlines the different options available to landholders, including the criteria to be eligible for support under the new arrangement.



5. Choosing a drainage engineer or earthworks contractor


Choosing a drainage engineer or earthworks contractor

Due to the size and complexity of some drainage systems, the services of professional drainage engineers and contractors may be required to plan and supervise construction or refurbishment works. (Do you require a drainage engineer or contactor? See fact sheet ‑ Problem definition and support pathways for landholders).

Engineers

Having an experienced and qualified engineer plan and supervise the construction of new infrastructure can ensure that works are properly designed, work effectively, are built to last and meet current industry standards. For complex projects, a suitably qualified engineer can also manage all aspects of application, documentation, design and supervision of construction works.

You should take care to ensure any engineer or contractor that you select is suitably qualified, and understands and is compliant with the obligations for the works required. You also need to be satisfied that they have the expertise that is appropriate for your works.

A suitably qualified engineer is a professional engineer who:

a) Has qualifications sufficient for eligibility for membership of Engineers Australia;

b) Is recognised by the engineering profession as experienced in the engineering of rural drainage systems;

c) Is competent to undertake the investigation, design, construction supervision, operation, repair and maintenance activities associated with rural drainage; and

d) Has an appropriate amount of professional indemnity insurance.

A competent and experienced engineer would be able to demonstrate:

1. A sound knowledge of relevant design principles and methods to ensure safety, economy and durability;

2. An appreciation of local meteorological, hydrological and geological conditions;

3. A knowledge and understanding of current industry practices and standards with respect to drainage;

4. A broad knowledge of other factors that might be relevant in particular situations, including knowledge of legal obligations such as those under the Water Act 1989, Planning and Environment Act 1987 and Aboriginal Heritage Act 2006 and awareness of such potential problems as siltation, vegetation maintenance, erosion, and pollution; and

5. Construction and site supervision experience.

Contractors

The use of inexperienced contractors or undertaking works yourself may cost you more in the long run. Using an experienced contractor, with appropriate equipment and skilled machine operators, will ensure your drainage project delivers the desired results.

To ensure that your contractor is able to complete the works to the standard required, landholders will need to confirm that they:

• Are experienced and can provide references;

• Have appropriate insurance and safety systems; and

• Are willing to enter into a formal contract.



Choosing an engineer or contractor

The following section outlines steps you need to consider when selecting and engaging a drainage engineer or construction contractor.

Experience and references

Talk to previous clients. What have the contractor’s other clients have said about their work, what are their skills, experience, attitude and ability? Also ensure all operators have appropriate training and qualifications. To carry out excavation work, all persons involved should be qualified and trained for the task (for example, to operate front-end loaders, excavating machines etc.).

Legislation currently being reviewed in the Victorian Parliament will require that all engineers in Victoria are registered, and will ensure that engineers are appropriately qualified. Refer to the Engineers Australia website for further information.

Contracts

Your engineer or contractor should present a written quote including timeframes, details of the work, exclusions and the price. This is a non-legally binding document that gives the landholders the chance to negotiate until an agreement is reached between both parties.

A contract can then be developed which includes:

• A clear start date, end date, build duration and details on the scope of the job

• The final price that you agreed on

• All terms and conditions.

Make sure the contract, service agreement, schedules and any other required documents are clear and legally binding. The contractor should provide a full written description of their role.

Insurance

When selecting an engineering service, make sure that the engineer’s level of professional indemnity insurance is sufficient to match the cost of the work and the consequences of failure. This is in both the engineer’s interests and yours.

Safety and risks

Contractors will need to be aware of any occupational health and safety issues and regulations regarding your works. Contractors should hold the appropriate certificate of competency in accordance with the National Guidelines for Occupational Health and Safety Competency Standards for the Operation of Loadshifting Equipment and Other Types of Specified Equipment.

An Excavation Compliance Code has been developed by Worksafe Victoria. This code provides practical guidance on how to manage health and safety risks associated with various excavation works and comply with their duties under the Occupational Health and Safety Act 2004 and Occupational Health and Safety Regulations 2017.

The code provides guidance on current regulatory requirements, including information on:

• What excavation work is

• Who has duties associated with excavation work and what those duties are

• How to plan work involving excavation

• Practical measures to control risks

• How to reduce the risk of ground collapse.



6. Preparing a rural drainage management plan


6. Preparing a rural drainage management plan

Preparing dryland rural drainage management plans

Catchment management authorities will work with landholders and other agencies (such as councils, the Department of Land Water and Planning, water corporations or Traditional Owner groups) to guide the development of dryland rural drainage management plans.

Broadly, the dryland rural drainage management plans will provide:

• Multi-year works plans that have a clear schedule of the type, scale and timing of works to be undertaken, and that meet the required objectives of approvals;

• An outline of the management, operation and maintenance schedule of works for a system for a period of up to 15 years, thus streamlining the approvals process by avoiding the need to get approvals every time work is carried out; and

• An outline of the distribution of costs to support the works program (and any associated administrative expenses) and how these funds will be collected.

The guidelines to develop dryland rural drainage management plans are yet to be finalised and will be informed through a series of pilot projects currently being undertaken across the state. Your catchment management authority will be able to keep you updated as to when these guidelines become available.


7. Managing disputes


Managing disputes

Various types of disputes can occur between landholders or between landholders and agencies over developing or managing rural drainage. Where the disputes cannot be resolved amicably, a number of options are available to settle them (see table 8.1).

Dispute Settlement Centre of Victoria is a free and confidential dispute resolution service provided by the Victorian Government. The centre offers neighbours who are in dispute an opportunity to meet and, with the assistance of mediators, reach an agreement that works for everyone.

Victorian Civil and Administrative Tribunal can be engaged where the dispute cannot be resolved through mediation. The tribunal process is not free; a fee is charged for the application process with further costs if the dispute goes to a hearing.

The Victorian Ombudsman investigates complaints about administrative actions taken by Victorian Government agencies, including departments, most statutory authorities, and local governments. If a landholder or drainage group is in dispute with a regulating authority over gaining approvals that cannot be resolved through mediation, they can make a complaint to the Victorian Ombudsman. Any member of the public or group of people can make complaint. It is a free service.

Consumer Affairs Victoria can provide advice to landholders on how to resolve disputes with contractors. Consumer Affairs will contact the business on the complainant’s behalf to identify the issues and explore options for a resolution that are consistent with the law. It should be noted that Consumer Affairs cannot enforce an outcome.

Professional associations such as Engineers Australia can consider a complaint if it relates to a member of Engineers Australia who has breached the Engineers Australia Code of Ethics.

Victorian Magistrates Court (civil jurisdiction) covers matters relating to claims for debts, damages for breach of contract, damage to property or for injury and limited neighbourhood matters. Landholders can seek legal advice and resolve their issues through the legal system. However, this process can be very costly and may damage relationships between neighbours and should only be used as a last resort.

Existing forums or fit-for-purpose forums provide a way for landholders to seek guidance when they are having difficulty formalising arrangements for drainage systems. The idea is that the forum will provide consistent advice to landholders from all government agencies that have drainage roles and responsibilities. Local arrangements may be different, and in some cases this may be a meeting called specifically for this purpose. Another option is to use existing forums. One example of an existing forum that may provide guidance is an Integrated Water Management Forum. These forums, established through the government’s water policy, Water for Victoria, have representation from government agencies, such as councils, catchment management authorities and the Department of Environment, Land, Water and Planning.



Table 7.1 Options for managing disputes under a range of circumstances

Type of dispute

Options to resolve Considerations

Change of flow across boundaries due to drainage

In

cre

asi

ng

dif

ficu

lty

Direct contact between parties

First step before involving agencies. If a dryland rural drainage management plan or agreement is in place, it can be used to prevent change of flow disputes occurring, or the dispute resolution mechanisms within the agreement can be used to resolve the dispute

Dispute Settlement Centre of Victoria

Free arbitration service if agreement cannot be reached or there is no written agreement. Results of arbitration are not legally binding

Victorian Civil and Administrative Tribunal

Applies where the change of flow is unreasonable and causes damage. Hearing or arbitration, results are enforced, costs involved

Victorian Magistrates Court (civil jurisdiction)

High level costs and potential damage to relationships. Use as a last resort

Failure to do maintenance

In

cre

asi

ng

dif

ficu

lty

Direct contact between parties

First step before involving agencies. If a dryland rural drainage management plan or agreement is in place, it can be used to prevent change of flow disputes occurring, or the dispute resolution mechanisms within the agreement can be used to resolve the dispute

Dispute Settlement Centre of Victoria

Free arbitration service if agreement cannot be reached or there is no dryland rural drainage management plan. Results of arbitration are not legally binding


Hearing or arbitration, results are enforced, costs involved

Unauthorised works and permitting

In

cre

asi

ng

dif

ficu

lty

Raise with relevant authority: catchment management authority, councils, individuals, VicRoads, VicTrack, Melbourne Water

Ensure that all parties understand their obligations

Victorian Ombudsman’s Office

Can consider decisions on permitting by government agencies



Victorian Magistrates Court High level costs and potential damage to relationships. Considered a last resort

Contractor disputes

In

cre

asi

ng

dif

ficu

lty Contract management Having binding contacts and clear expectation prior to

undertaking works can prevent future disputes

Consumer Affairs Can provide advice to landholders on how to resolve disputes or manage mediation

Professional organisations like Engineers Australia

Can support mediation for disputes involving Engineers Australia members



Table continued next page u



Type of dispute

Options to resolve Considerations

Minority of landholders unwilling to participate in formal drainage management

in

cre

asi

ng

dif

ficu

lty

Community engagement Landholders work with or negotiate with neighbours over the need/value of drainage, or manage their system in a way that reduces the impact or cost

Drainage management plan Requires significant support from community and backing from a catchment management authority

Existing forums or fit‑for‑purpose forums with relevant government agencies, such as integrated water management forums

Local arrangements vary. Landholders and government agencies will need to consider the most appropriate forum for the local context. It is expected that the majority of landholders will be on board before works proceed. If landholders do not agree to undertake drainage works, representatives may provide guidance on possible next steps. For example:

• Landholders within a viable, stand-alone part of the drainage system may form a smaller collective to meet their individual needs

• Agreements may be made with landholders to access land for works funded by landholders that do agree

• Guidance may be provided about negotiating strategies.

In rare circumstances, additional legislative tools may be recommended. However, it should be noted that these are increasingly costly, require significant effort and input from the local community, depend on overwhelming community support, and agreement from the council, and still with no guarantee that they will get up. Additional legislative tools may include:

• Water management scheme S 215 – Water Act 1989 • Drainage course declaration – S 218(a) of the Water Act 1989

(where works may be required to provide an additional service)

• Special rate or charge S 163 Local Government Act 1989 (where the dispute relates to not everyone agreeing to pay).

Table 7.1 Options for managing disputes under a range of circumstances continued



8. What are the likely financial costs and benefits?Rural drainage financial cost-benefit assessment tool guidance


8. What are the likely financial costs and benefits?

Rural drainage financial cost-benefit assessment tool guidance

Contents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3

1.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3

1.2 The Rural Drainage Assessment Tool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3

1.3 Guide to the user manual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3

1.3.1 When might you use the Tool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.4

1.3.2 Overview of the assessment process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.4

2. User guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5

2.1 Getting started (Step 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5

2.2 Entering enterprise input data (Step 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.6

2.2.1 Beef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7

2.2.2 Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.8

2.2.3 Sheep . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.9

2.2.4 Cropping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.10

2.3 Entering drainage input data (Step 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.11

2.4 Summary worksheet (Step 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.12

2.5 Inputs and assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.14

2.6 Worked examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.15

2.6.1 Example 1: Mixed beef and cropping enterprise using default input values . . . . . . . . . . . . . . . . . . 8.15

2.6.2 Example 2: Dairy enterprise with user defined input values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.17

2.6.3 Example 3: Multiple properties with a mix of enterprises and user defined input values . . . . . 8.19

Appendix A. Additional information

Climate change and climatic variability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.21

Approvals and other factors to consider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.22

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.23

Glossary of terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.24



1. Introduction

2 ‘Refurbishment’ refers to structural earthworks, weed spraying and slashing/mowing, to return drains to a well-functioning condition

1.1 Background

The Rural Drainage Assessment Tool (the ‘tool’) is a computer application (in the form of an Excel spreadsheet) that has been developed for use by landholders to make a preliminary assessment, at the local scale, of the economic viability of improving or maintaining existing drainage infrastructure. This document is a user guide that is designed to introduce the tool to landholders and to provide a step-by-step overview of how to use the tool and how to interpret the results it produces. The tool is available for download from www.water.vic.gov.au/water-for-agriculture/rural-drainage

Important note: Undertaking drainage works may require landholders to gain approval from the relevant authorities. Appendix A provides a brief summary of the roles and responsibilities of landholders and other organisations in relation to rural drainage and how to go about seeking any relevant approvals.

1.2 The Rural Drainage Assessment Tool

The Rural Drainage Assessment Tool has been developed to enable individual landholders and groups of landholders to assess if renewing and maintaining on-farm drains is economically viable. The assessment involves the input of a range of enterprise data such as stocking rate, crop yield, and profitability and production costs, as well as scale and costs associated with proposed drainage refurbishment2 works. The financial benefits associated with drainage are compared with the costs of generating these benefits through a user-friendly benefit:cost analysis.

It is designed for use primarily across beef, sheep, dairy and cropping enterprises, including properties where there is a mix of enterprises. Horticulture can be treated as cropping within the tool. It has also been configured to use across multiple properties, such as in situations where groups of landholders in an area wish to assess the economic viability of joint activity to improve drainage.

The tool is in the form of an Excel spreadsheet with the ability for the user to use default values (for example, in calculating input costs and gross margins) or to define new values where appropriate.

The tool is designed to be as simple as possible to provide an approximation of economic viability, as a first step towards determining if further investigation and detail is warranted. All outputs should be treated as indicative and should not be relied upon alone to make investment or management decisions. While there may

be a range of benefits and costs associated with improving rural drainage, the tool focuses on the financial aspects that will be relevant to landholders. There a range of other factors that will need to be considered alongside the direct financial impacts before determining whether drainage works are appropriate. These include:

• Environmental costs and benefits, including the purchase of environmental offsets

• Impacts of any drainage works

• Planning permits and other approvals for works (and associated costs in meeting these requirements)

• Tax implications of changes in revenues and costs.

Potential benefits for landholders of improving drainage:

• Reducing the extent, severity and duration of inundation after rainfall, resulting in:

– Improved productivity and enterprise profitability

– Increased efficiency of farm management (e.g. stock management, machinery movement).

• What might be the costs?

– Direct financial costs associated with refurbishment (i.e. returning degraded drains to good functioning condition)

– Direct ongoing financial costs associated with maintaining drainage conditions

– Cost/time inputs involved in coordinating drainage works with other landholders

– Costs involved in obtaining environmental and other approvals.

While the tool has been developed for use by individual landholders and groups of landholders, it is also likely to be useful for farm advisors, consultants and farming systems groups working with landholders on rural drainage issues.

1.3 Guide to the User Manual

This User Manual has been designed to provide guidance in using the Rural Drainage Assessment Tool to undertake a preliminary assessment of the benefits and costs of refurbishing and maintaining drainage infrastructure on private land.


In addition to the background information provided above, this user manual includes:

• An overview of how the tool works

• A description of circumstances in which you might use the tool

• A summary of the key input data required to undertake an assessment

• Step-by-step instructions

• A series of worked examples

• Advice on how to interpret the results

• A glossary of terms.

1.3.1 When to use the tool

• You have drainage infrastructure on your property and are considering investing in refurbishment and/or maintenance works

• Your property is part of a community drainage scheme, across multiple properties, and you would like to collaborate with your neighbours to assess the economic viability of refurbishment and/or maintenance works.

The tool is not designed to assess publicly operated and managed drainage schemes or to assess the broader environmental benefits and costs associated with drainage.

1.3.2 Overview of the assessment process

Figure 1 provides an overview of the assessment process.


Figure 1: Overview of assessment process

Install the tool on to the hard drive of your computer

Define the scope of the assessment e.g. single or multiple properties and

which enterprises will be included

Enter input data for each property and enterprise

Enter input data for proposed drainage works

Review input data

Review results

Adjust input data if required



2. User guide

2.1 Getting started

The tool is in the form of an Excel spreadsheet.

It is recommended that you make a copy of the file Rural Drainage Assessment Tool v1.04.xls to the hard drive of your computer, and into a folder where it can easily be located in the future.

When you open the file you will see the first worksheet, named Guidance (Figure 2 below). This worksheet provides an overview of the four key steps you need work through to undertake a new assessment.

Figure 2: Guidance worksheet

Notes:

1. Before you begin a new assessment you should save the previous assessment with a unique file name and then reopen the original spreadsheet file and ‘clear all sheets’ to begin a new assessment. [Tip: Once you have completed an assessment save it with a new file name].

2. Step 2 (Enterprise inputs) and Step 3 (Drainage inputs) require you to enter data into the cells only. Relevant white cells will then be populated automatically.

3. Step 4 (Summary worksheet) provides an overview of the data you have entered, together with key calculations and results. If you wish to alter any input data, return to the relevant enterprise worksheet or the drainage worksheet.

Step 1: To start a new assessment click here to clear all sheets – this removes previous input data

Step 2: Select the main enterprise involving drainage on the property (e.g. cropping) – click here to open the relevant worksheet. See Section 2 for guidance on entering user data. Note: for properties with more than one enterprise each relevant worksheet should be filled out

Step 3: Click here to go to the Drainage worksheet where you enter input data on the drainage features of the property

Step 4: Enables you to review a summary of the input data and results


2.2 Entering enterprise input data (Step 2)

The tool has been designed to undertake drainage assessments for four different types of enterprises: beef, dairy, sheep and cropping. A mix of enterprises on each property can also be assessed by entering information for each production type under the appropriate property number. For example, if Property 1 produces both crops and beef, then information should be entered in the ‘Property 1’ column in both the ‘cropping’ and ‘beef’ worksheets.

Each enterprise worksheet has the same basic structure, with a set of specific questions relevant to that enterprise. The questions relate to factors about the current operation, such as stock numbers, income and costs and then ask you to consider how these factors might alter with improved drainage.

Think carefully about each question and then enter your response into the corresponding cell for Property 1.

Note that when you enter user data, ‘default values’ will be generated in subsequent cells. These values are automatically calculated from the ‘General Inputs and Assumptions’ worksheet. Further information on these inputs and assumptions is provided in Section 2.5 (Figure 9). If you wish you can override the default value with values that are more reflective of your enterprise operations. Note that the assessment is only concerned with changes in operating revenues and operating costs (and hence operating profits), which are then compared against the cost of drainage works. Other potential benefits and costs are not considered (such as environmental impacts, changes in land values, lifestyle benefit, and all other factors mentioned in Section 1.2). Each enterprise worksheet has a set of three buttons at the bottom of the worksheet:

• Go to ‘Summary’ sheet – click this button if you wish to review the relevant summary information that has been compiled for the assessment to that stage.

• Return to the ‘Guidance’ sheet – click this button if you wish to check the guidance information. The values you have entered will be retained.

• Clear this sheet – click this button if you wish to delete the values you have entered for this enterprise. Note that you will need to enter new values to proceed with the assessment.

The tool has been designed for use across multiple properties – for example, by a group of landholders wishing to take a collaborative assessment of the viability of renewing and maintaining a drainage network at a landscape or community scale. Further guidance on multiple property assessments is provided in Example 3.

Specific guidance for each of the four enterprise worksheets is provided on the following pages.




2.2.1 Beef

Figure 3 below describes the inputs required for assessing the beef enterprise on an individual property.

Figure 3: Beef enterprise worksheet

Notes:

1. 'Gross income' includes the annual revenue from all livestock sales minus the value of livestock purchases.

2. 'Variable costs' include costs associated with animal health, feed, pasture management, freight and selling costs.

3. The difference between gross income and variable costs will generate the average gross margin per head – see Cell H8 in ‘Summary’ worksheet.

4. Review the assumptions used to generate the default values for annual gross income and annual variable costs in ‘General Inputs and assumptions’ worksheet. Return to the ‘Beef’ worksheet and adjust these values if required.

Average number of breeding stock current (Cell C4)

Average number of breeding stock with improved drainage (C5)

Default values will be generated for annual gross income per head (C6) and annual variable cost per head (C8)

Override default values (if required) for annual gross income (C7) and annual variable cost (C9)


2.2.2 Dairy

Figure 4 below describes the inputs required for assessing the dairy enterprise on an individual property.

Figure 4: Dairy enterprise worksheet

Notes:

1. 'Gross income' includes the annual revenue from all milk and livestock sales minus the value of livestock purchases.



4. Review the assumptions used to generate the default values for annual gross income and annual variable costs in ‘General Inputs and assumptions’ worksheet. Return to the ‘Dairy’ worksheet and adjust these values if required.

Average number of breeding stock current (Cell C4)

Average number of breeding stock with improved drainage (Cell C5)






2.2.3 Sheep

Figure 5 below describes the inputs required for assessing the sheep enterprise on an individual property.

Figure 5: Sheep enterprise worksheet

Notes:

1. 'Gross income' includes the annual revenue from all wool and livestock sales minus the value of livestock purchases.



4. Review the assumptions used to generate the default values for annual gross income and annual variable costs in ‘General Inputs and assumptions’ worksheet. Return to the ‘Sheep’ worksheet and adjust these values if required.

Average annual area of land used for grazing (Cell C4)

Average number of breeding stock with improved drainage (Cell C5)




2.2.4 Cropping

Figure 6 below describes the inputs required for assessing the cropping enterprise on an individual property.

Figure 6: Cropping enterprise worksheet

Notes:

1. 'Gross income' includes the annual revenue from sale of all crops over the year.

2. 'Variable costs' includes the annual costs of labour, fertiliser, irrigation, pesticides, sowing, harvesting, cartage and machinery operation.


4. Review the assumptions used to generate the default values for annual gross income and annual variable costs in ‘General Inputs and assumptions’ worksheet. Note that the default values are based on dryland wheat (assumed price $220/tonne) and will therefore need to be adjusted for other crops. Return to the ‘Cropping’ worksheet and adjust these values if required. Because the tool is at a whole farm scale, if you have a mix of crop types then you need to consider the average yield weighted across the farm (for example if you have 200 ha of wheat that yields 2.5 t/ha and 100 ha of canola that yields 1 t/ha then the area cropped is 300 ha and the average yield is (2.5 x 200 + 1 x 100)/300 = 1.67 t/ha). The average price would need to be calculated based on the relative prices of wheat and canola.

5. This sheet can equally be used for horticulture, however ‘user input values’ will need to be entered when estimating gross income per tonne and annual variable costs per hectare.

Average annual area of land used for cropping (Cell C4)

Average annual crop yield current (C5)

Area of land able to be cropped with improved drainage (C6)

Annual crop yield with improved drainage (C7)

Default values will be generated for annual gross income per tonne (C8) and annual variable cost per hectare (C10)





2.3 Entering drainage input data (Step 3)

Figure 7 below describes the inputs required for assessing the drainage requirements on an individual property.

Figure 7: Drainage inputs worksheet

Notes:

1. The current condition of drains (good, average or poor) is assumed to determine the refurbishment cost. For example, poor quality drains will require more work and therefore incur greater cost to make them functional. The default value is set at $2.20 per metre with a multiplier of 4 for poor, 1 for average and 0.5 for good condition states. These can be varied as required using the ‘user input value’ cells. Note that drainage costs can vary widely and so it is important to think carefully about whether you want to stick with the default value or enter your own estimate.

2. The time taken to refurbish all drains will affect the calculation of benefits and costs.

3. The costs of any additional works required that are not within the boundaries of the properties being assessed (‘off-property drainage works’) should be estimated, and the costs allocated between the properties being assessed. For example, if two landowners are considering improving drainage on their properties but require $10,000 in off-property works for the drains to be effective, a percentage split of these costs between these two parties should be estimated (usually proportional to the share of benefit that the drainage system improvements will bring about).

Total length of drains on property (Cell C4)

Total length of drains that require refurbishment (C5)

Current condition of drains (C6) – select from dropdown box

Cost (per metre) to refurbish (C7) and maintain (C9)

Override default values (if required) for refurbishment costs (C8) and annual maintenance costs (C10)

Percentage share of the cost of any required works to be undertaken outside of property areas assessed (C11)

Capital and ongoing costs of off-property drainage works (B12 and B13)

Number of years to complete refurbishment program


2.4 Summary worksheet (Step 4 – see next page)

The ‘Summary’ worksheet is automatically populated from the input data provided in the relevant enterprise worksheets and the drainage worksheet. Figure 8 provides an overview of the information that is provided in the summary assessment.

Notes:

1. It is not possible to adjust or change values in this worksheet. Return to the specific enterprise or drainage worksheet by clicking on the relevant button to the left of the summary of inputs table.

2. For assessments involving multiple properties, specific input data should be provided for each property and enterprise combination. Worked example 3 provides guidance for such an assessment. Up to 10 properties can be combined if required.

3. The graphs (annual benefits and costs of drainage and cumulative benefits and costs of drainage) provide a visual representation of how the benefits and costs vary through time, noting that the time frame for the analysis is 25 years.

4. The Benefit: Cost Ratio (BCR) will provide a general indication of the economic viability of the proposed drainage improvements. A BCR of 2 indicates that the benefits are double the costs over a 25 year time frame and that improvement works appear to be worth investing in. A BCR of 0.5 would indicate that the costs are double the benefits and therefore that investment is not justifiable on economic terms.




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2.5 Inputs and assumptions

Apart from user defined inputs, there are a series of general inputs and assumptions used to populate the tool. These are described in the ‘General Inputs and Assumptions’ worksheet (Figure 9).

Figure 9: General inputs and assumptions worksheet

This worksheet has three components:

1. Economic and financial parameters

2. Default production values

3. Drainage cost assumptions.

Each component includes some brief explanatory notes, together with relevant information sources.

The default production values and drainage costs in this worksheet cannot be altered, but where applicable they can be overridden in specific worksheets (using the ‘user input value’ cells). For example, you can adjust the values for gross income and variable costs for specific enterprises they apply to your context.




2.6 Worked examples

2.6.1 Example 1: Mixed beef and cropping enterprise using default input values

This section describes a worked example for a hypothetical mixed farm, with both beef and cropping enterprises. In this example the default input values have been used for estimation of benefits and costs.

Figure 10: Beef enterprise inputs

Figure 11: Cropping enterprise inputs

• Current area of cropping is 200 ha and current annual yield is 8 t/ha without improved drainage. This is estimated to change to 210 ha and 8.5 t/ha with improved drainage

• Default value for gross income per tonne ($220) and annual variable cost per hectare ($1,250) is generated and accepted

• Number of breeding stock without improved drainage (200) and with improved drainage (205)

• Default value for gross income per head ($1,000) and annual variable cost per head ($400) is generated and accepted


Figure 12: Drainage inputs

Figure 13: Summary of inputs and results

• Current length of drains is 2,000 m, and 1,000 m (50%) require refurbishment. These drains are in average condition

• Default values for refurbishment cost ($2.20/m) and maintenance cost ($0.41/m) are accepted

• It is estimated that the refurbishment program will take two years

• No off-property works required

• The annualised benefits from increased production are $21,069/year

• The annualised refurbishment and maintenance costs are $869/year

• The benefits are estimated to exceed the costs by ~ 30 times (BCR of 24.25) with a payback period of one year

• The proposed program appears highly economically viable




2.6.2 Example 2: Dairy enterprise with user defined input values

This section describes a worked example for a hypothetical dairy farm of 400 hectares. In this example the default data has been overridden for both enterprise inputs and drainage inputs.

Figure 14: Dairy enterprise inputs

Figure 15: Drainage inputs

• Number of breeding stock without improved drainage (150) and with improved drainage (155)

• Input values for gross income per head ($2,600) and annual variable cost per head ($1,060) has been used to override default values which were seen to be overestimating income and underestimating costs

• Current length of drains is 3,000 m, and 2,500 m (~80%) require refurbishment. These drains are in poor condition.

• Input values for refurbishment cost ($10/m) and maintenance cost ($2/m) have been used to override default values

• It is estimated that the refurbishment program will take one year

• No off-property works are required


Figure 16: Summary of input data and results

• The annualised benefits from increased production are $5,200/year

• The annualised refurbishment and maintenance costs are $7,235/year

• The benefits are estimated to be slightly less than the costs (BCR of 0.73)

• The proposed program appears to not be economically viable




2.6.3 Example 3: Multiple properties with a mix of enterprises and user defined input values

This section describes a worked example showing an assessment for multiple properties (three) where there is a mix of enterprises (two beef and one dairy). User defined values have been used as inputs.

Figure 17: Beef enterprise inputs

Figure 18: Dairy enterprise inputs

• Two of the three properties are beef. Number of breeding stock without improved drainage (100 on Property One and 50 on Property Three) and with improved drainage this increases (105 on Property One and 60 on Property Three)

• Default value for gross income and annual variable costs has been overridden

• Property Two is dairy - number of breeding stock without improved drainage (200) and with improved drainage (210)

• Input values for gross income per head ($2,600) and annual variable cost per head ($1,060) has been used to override default values that were seen to be overestimating income and underestimating costs


Figure 19: Drainage input data

Figure 20: Summary of inputs and results

• Current length of drains is 4,000 m over the three properties, and 2,600 m (~65%) require refurbishment. These drains are in poor or average condition

• Input values for refurbishment cost and maintenance cost vary across properties and user values have been defined

• It is estimated that the refurbishment program will take two years

• No off-property works are required

• The annualised benefits from increased production are $13,607/year in total across all properties

• The annualised refurbishment and maintenance costs are $5,610/year in total

• The benefits are estimated to be outweighing the costs (BCR of 2.43)

• The proposed program appears to be economically viable




Appendix A. Additional informationFuture changes in dryland agricultural production and in land use, both of which are largely driven by market demand for agricultural commodities, may affect the benefits derived from rural drains. The potential for reducing the effects of inundation of agricultural land is heavily dependent on the condition and subsequent performance of existing drainage infrastructure.

Climate change and climate variability

The effects of future climate change are predicted to be significant for Victorian agriculture. These changes are likely to affect productivity and costs associated with different agricultural enterprises, together with the characteristics and function of drainage schemes.

In general, climate change is expected to produce hotter and drier conditions, which would tend to decrease the average annual impacts of inundation. Although drier conditions are expected, the intensity of some extreme rainfall events may increase. The benefits of well-maintained drains would be most evident following these events. The overall net effect of climate change on the cost-benefit equation for maintaining rural drains is thus uncertain and may not be evident in the short term.

Furthermore, the local effects of climate change are difficult to predict with any certainty, and therefore the benefits and costs of improving drainage systems are perhaps best explored through a range of scenarios which can then inform landholder decision making.

Table 1 describes the predicted implications for temperature change, rainfall, evapotranspiration and runoff for three scenarios (DELWP, 2016) that have been generated from a set of global climate models. More detailed information is available in this report at a river basin scale; however, the general pattern is similar to the state wide data shown here.

There is considerable uncertainty around these climatic factors, and landholders should take this uncertainty into consideration when assessing the cost effectiveness of drainage interventions. Landholders

should consider how changes in temperature, rainfall and run-off may affect their farming operations (stocking rates, areas cropped, yields, prices and costs of inputs) in the future. These factors will change the effectiveness of drainage and its impact on enterprise profitability. The best approach would be to develop scenarios around changes in these inputs, and then assess how they would respond in terms of their operations. They should then consider how improved drainage may alter these operational decisions under these scenarios.

The design and ease-of-use of the Rural Drainage Assessment Tool makes it suitable for scenario analysis, such as exploring the implications of various climate change scenarios for the economic viability of investing in drainage improvement.

To use the tool in this way we would recommend the following steps:

1. Select a climate change scenario you would like to explore, using Table 1 as a guide

2. Create a new assessment in the Rural Drainage Assessment Tool

3. Complete the assessment giving consideration to what you think the estimated impact of the climate change scenario will be on your operations (and hence the respective input values). For example:

• Under the medium climate change scenario, what effect would the predicted change in temperature, rainfall, potential evapotranspiration and runoff have on:

i. The carrying capacity and/or yield of your enterprise ‘with’ and ‘without’ improved drainage

ii. Income and costs

iii. The proportion of drains that would require refurbishment and the future condition of the drainage network on the property.

4. Compare the results of this assessment with the previous baseline assessment (without ‘climate change’).

Table 1: Predicted impacts2

Climate change scenario

Temperature change

Rainfall Potential evapotranspiration (PET)

Runoff

2040 2065 2040 2065 2040 2065 2040 2065

Low +2.4% +2.7% 8.7% +1.5%

Medium +1.30°C +2.30°C ‑3.6% ‑4.7% ‑4.5% ‑7.4% ‑8.5% ‑15.9%

High ‑10.4% ‑19.4% ‑24.7% ‑43.8%

2 Data not available for temperature change and PET for low and high scenarios


Approvals and other factors to consider

Currently, individual landholders may need to apply to a range of agencies to obtain the necessary approvals to drain water from their land. A number of these approvals have costs associated with them and will need to be considered when planning for works.

The existing requirements can include: permission from local council for earthworks that relate to the management of dryland rural drainage; approval to undertake works on a waterway from catchment management authorities and permission to remove native vegetation or undertake works on Crown land from the Department of Environment, Land, Water and Planning.

Extra effort may be required to demonstrate that works will be undertaken in an environmentally sensitive way where drainage works could affect:

• Ramsar wetlands

• Flagship waterway sites

• Wetlands and waterways by:

– Changes in watering regimes

– Impact on ecological values (this would also apply to a cumulative effect on ecological values), including:

> Native vegetation (trees, shrubs and grasses)

> Aquatic and/or terrestrial fauna

> Aquatic and/or terrestrial habitat

> Water quality and/or quantity.

Where a greater level of effort is required to consider environmental approval applications, approvals may still be granted. But more detailed investigation may be necessary to ensure potential impacts from drainage works have been considered, avoided or minimised. The Australian Government Environment Protection and Biodiversity Conservation Act 1999 identifies heritage items of national significance and provides protection mechanisms for these items. If an action is proposed that significantly affects a nationally listed heritage item, approval is required from the Australian Government – in addition to state and local approvals.

Landholders also have an obligation to protect cultural heritage and cultural landscapes during land management activities under the Aboriginal Heritage Act 2006. Landholders are responsible for reporting the discovery of Aboriginal cultural heritage and for not causing harm (without the appropriate authorisation under the Aboriginal Heritage Act 2006). An approved Cultural Heritage Management Plan or cultural heritage permit may be required in such places while undertaking dryland rural drainage works, including maintenance. Your council can advise on which group you need to talk to regarding cultural heritage in your area.

For more information on the approvals that may be required for your rural drainage works, refer to Part Four – Approvals for rural drainage.

In addition to the costs of meeting regulatory, legislative and planning obligations, there are other costs that landholders may need to consider. These include potential costs associated with planning, design, procurement and coordination of drainage works.




References

Hope, P, Timbal, B, Hendon, H, Ekström, M, Potter, N. 2017. A synthesis of findings from the Victorian Climate Initiative (VicCI). Bureau of Meteorology, 56pp, Australia. Available by download at http://www.bom.gov.au/research/projects/vicci/

Changes in climate conditions will affect the way rural drainage needs to be managed into the future. The Bureau of Meteorology recently released a synthesis of findings from the Victorian Climate Initiative. Because of the uncertainty about when and the extent to which reductions in rainfall and streamflow may occur, a scenario-based approach to planning is recommended.

Specific guidance for the water sector was developed in 2016 by the Department of Environment, Land, Water and Planning to help the sector plan for and adapt to a range of climate scenarios. The Guidelines for Assessing the Impacts of Climate Change on Water Supplies in Victoria apply a risk-based framework that considers the vulnerability of supply systems to climate variability and climate change.

www.climatechange.vic.gov.au/understand

To help Victorians understand the likely scale of change and what they can do to adapt, the Victorian Government produced Climate-Ready Victoria (2015), a series of regional fact sheets that outline projected climate change impacts across Victoria.

http://agriculture.vic.gov.au/agriculture/innovation-and-research/scientific-reports-and-guides/technical-report-on-climate-change-adaption-in-agriculture

http://agriculture.vic.gov.au/agriculture/dairy/dairy-science-and-research/climate-change-and-the-dairy-industry

https://www.climatechange.vic.gov.au/__data/assets/pdf_file/0018/60750/Statewide-Victoria.pdf

https://www.climatechange.vic.gov.au/

https://www.climatechangeinaustralia.gov.au/en/climate-projections/

https://www.climatechangeinaustralia.gov.au/en/climate-projections/climate-futures-tool/projections/

Dispute Settlement Centre of Victoria https://www.disputes.vic.gov.au/

Engineers Australia https://www.engineersaustralia.org.au/

Guidelines for the removal, destruction or lopping of native vegetation, https://www.environment.vic.gov.au/__data/assets/pdf_file/0021/91146/Guidelines-for-the-removal,-destruction-or-lopping-of-native-vegetation,-2017.pdf

Local Government Act 1989 https://www.disputes.vic.gov.au/

Water Act 1989 https://www.disputes.vic.gov.au/


Glossary of terms

Annualised benefit The equivalent yearly value of a project’s total projected benefits over its lifetime.

Annualised cost The equivalent yearly value of a project’s total projected costs over its lifetime.

Annual gross income The value of gross annual income from all sources (before deductions e.g. income tax).

Benefit: Cost Ratio A benefit:cost ratio (BCR) is an indicator, used in cost-benefit analysis, which summarises the overall value for money of a project or proposal. All benefits and costs are expressed in discounted present values.

Gross margin Refers to the total income derived from an enterprise less the variable costs incurred in the enterprise. This is usually expressed as a value per head of stock or per hectare of crop.

Macros A macro is a piece of programming code that runs in the Excel computer program and helps automate routine tasks. The Rural Drainage Assessment Tool contains a number of macros that need to be enabled for the tool to work.

Net Present Value (NPV) The net present value (NPV) or net present worth (NPW) is a measurement of economic profit calculated by subtracting the present values (PV) of cash outflows (including initial cost) from the present values of cash inflows over a period of time.

Payback period Payback period is the time in which the initial cash outflow of investment is expected to be recovered from the cash inflows generated by the investment.

Refurbishment In the context of rural drainage this refers to cases where an existing drain requires major works to restore its original function and effectiveness.

Rural drainage The works and functions related to the collection, and timely removal, of excess water generated by high rainfall to support agriculture production. It involves enhancing the hydraulic capacity of drainage lines and soils, and increasing the rate at which water will flow off (or through) and away from land, to support increased agricultural production in dryland areas.

Variable costs Expenses that vary in direct proportion to the quantity of output (e.g. number of animals in the enterprise, area of crop established).


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