RIVERLAND irrigators and growers are likely to receive full water allocations for the 2021/22 water year, however a local trust says rules surrounding private carryover have had “perverse outcomes” for a second consecutive year.
The State Government last week released an 82 per cent projected minimum opening water allocation for 2021/22, meaning local irrigators and growers will lose access to water set aside from the previous year.
Renmark Irrigation Trust (RIT) general manager Rosalie Auricht said this result – triggered when opening allocations are above 50 per cent – was unaligned “with the principles of a free market”.
“The bad news is that as the allocation is above 50 per cent, not only is private carryover not available when water is cheap, but any private carryover water already held cannot be rolled into 2021/22,” she said.
“Irrigators who conserved some of their water from the previous year have again had it legally taken from them, (and) the economic benefit of their water has effectively been socialised.
“Both the interim Inspector-General and the ACCC have observed that Murray-Darling Basin water users should not be relying on other water entitlement holders to incur economic loss for what is perceived as a social good.”
Allocations for South Australian River Murray irrigators began at a minimum of 2 per cent for the 2020-21 water year.
Chaffey MP Tim Whetstone said carryover was unnecessary in years with high opening allocations.
“There will be people who were making provisions to carry over water… it would be pertinent of them to either provide autumn and winter irrigation before July, or to enter the water market,” Mr Whetstone said.
“As primary producers we are the eternal optimists… and that’s one of the challenges that might have to be taken into consideration.”
Mr Whetstone said the 82 per cent figure pointed to a high probability of reaching full allocations for 2021/22.
“It tells us is that we have reasonable dam storages, and I think it’s a pretty good indication we’re going to receive our full allocation this year,” he said.
“That’s something every irrigator is looking forward to. If they can get some certainty, that’s the best thing they can ask for.
“These early forecasts are there to get irrigators attuned to what the current situation is with storages, weather forecasts and all the information they need to make decisions in planning for the 2021/22 water year.”
Mr Whetstone said lower temporary allocation prices, plus increased access to weather data, would help irrigators and growers prepare for the next water year.
“Temporary water prices have softened and are now between $70 and $80, and on reflection we’ve seen temporary water prices as high as $1200,” he said.
“(Irrigators) need to be much more attuned to the fluctuations of the water market, the vagaries of what we have in storage (and) weather forecast history.
“Irrigators are now much more in tune to dealing with early announcements and making sure their plan is in place.”
Nippy’s joint managing director Jeff Knispel said irrigators whose carryover was affected would need to revert to the temporary water market.
“At 82 per cent we are short-changed about 80GL of water, that for the most part will need to be traded in from over the border and of course paid for by South Australian River Murray irrigators,” Mr Knispel said.
“On the basis that leased-in water was valued at close to $1000 per megalitre last year, the 80GL of water that has just been cut from our allocations by the State Government has just cost irrigators 80 million dollars.
“Irrigators in SA are South Australians… and are no more to blame for low flows of water across the border than any other South Australian.
“Yet the Minister and/or his department’s strategy for managing the risk of low water flows into South Australia is to handball the shortage to irrigators to deal with.”
Ms Auricht said current carryover regulations gave South Australian River Murray irrigators little incentive to conserve water.
“Private carryover should be a mechanism for our Riverland irrigation community to mitigate drought and changing climate risks,” she said.
“The fact that irrigators have now lost their conserved water two years in a row strongly demonstrates SA’s private carryover arrangement is not fit-for-purpose.
“The current arrangement has perverse outcomes as it encourages irrigators to fully use or sell their water, rather than conserve it.
“While conserved water can be ‘parked’ on interstate licences, that does involve considerable cost and benefits interstate water licence holders. It is merely a water-accounting exercise.”
Ms Auricht said further improvement was needed to South Australia’s private carryover legislation.
“The trust will continue to advocate for change until our irrigators have a fit-for-purpose private carryover arrangement that is effective in mitigating drought and climate change risk,” she said.
“Achieving that will provide added water security and confidence for our members and help them sleep at night.”