ScoMo’s drought plan: NSW farmers can buy cheap water from SA
Drought-stricken farmers in NSW will have access to cheaper water to grow fodder for their livestock under a radical new plan to buy up from South Australia.
NSW
Don't miss out on the headlines from NSW. Followed categories will be added to My News.
Drought-stricken farmers in NSW will have access to cheaper water to grow fodder for their livestock under a radical new plan to buy up from South Australia.
Under a deal struck between the federal and South Australian governments, up to 100 gigalitres of water currently stored in dams around the lower southern Murray Darling Basin will be made available to nearby farmers to grow feed for their stock.
Prime Minister Scott Morrison announced the plan on Thursday, confirming the SA government would be paid about $98.4 million to cover the cost of switching on its desalination plant to replace the water that would have otherwise flowed down the Murray River to Adelaide.
“This is a practical measure which both deals with hardship along the Murray … (and) deals with making available more fodder, putting more in the system so there’s more available to those breeding stock which desperately need it,” Mr Morrison said.
Up to 6000 irrigators will get access to 25 megalitres under the plan.
Farmers will be able to apply for access to the water, which would be sold at the heavily discounted rate of $100 per megalitre, through an expression of interest process before Christmas.
The water is then expected to be delivered by April 31.
It is expected to help grow 120,000 tonnes of fodder for breeding stock.
Water Resources and Drought Minister David Littleproud said the scheme would include protections to ensure the discounted water was only used for fodder and pasture production.
“(The water) cannot be transferred,” Mr Littleproud said on Thursday.
“It must be used for fodder production so that we can continue to put downward pressure on fodder to make sure that it is affordable for farmers out there.”
NSW Farmers President James Jackson said the additional water and other measures, including cash for drought-affected councils, were a “welcome step”.
But Mr Jackson remained concerned about the emphasis on loans.
“The centrepiece of this latest package for farmers is low interest loans that do have to be paid back,” he said.
“There will be farmers who do not have the capacity to do that. The government must reassure applicants that they will streamline paperwork, minimise red-tape and ensure banks are proactive in their response to farmers and small businesses.”
Labor’s agriculture spokesman Joel Fitzgibbon said he was disappointed the government’s extended drought package did not include an extension of the Farm Household Allowance for families who have hit the support payment’s four-year limit.
“There will still be almost 1800 families coming off Farm Household Allowance this financial year,” he said.