Farmers blame cashed-up investors for buying Victoria’s water rights

Secret investors protected by privacy rules are buying up ­Victoria’s water rights, driving prices sky high and forcing already struggling farmers off the land.

Secret investors are buying up Victoria’s water rights as farmers are left high and dry.

Water prices across the state have skyrocketed to about $600 a megalitre — up from just $200 last year.

Farmers blame an influx of cashed-up investors for driving up the price and forcing them off the land.

But privacy rules prevent them knowing who is buying water rights, even though there is a state register.

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The market has become so confusing that TV star Eddie McGuire has fielded offers from farmers wrongly thinking he had bought water rights. These give the buyer the right to take water from a source, such as a river. The water can then be used or sold on. Water can’t be taken from a river without such rights.

McGuire said he had had farmers inquiring about his water “supply”.

“Happy for you to dispel the rumour,” he told the Sunday Herald Sun.

Water Minister Lisa Neville said the government was considering ­reforms to make the system more transparent. Picture: AAP

The Myer family, Senator Penny Wong and former prime minister Malcolm Turnbull are among other public figures wrongly accused of buying up Victoria’s water stocks.

Water rights used to be sold with land but laws introduced in 2014 mean they can now be bought separately. It’s created a new water “sharemarket” where rights are sold.

Water Minister Lisa Neville said the government was considering ­reforms to make the system more transparent. Proposals include allowing farmers to search the water register to find out exactly who has purchased rights.

“We are doing some work on that at the moment,” Ms Neville said. “I think that absolutely gives a sense of confidence in the market.”

Farmers and regional leaders are demanding reform. Robert McGavin, executive chairman of olive grower and large water user Boundary Bend, said some investors were stockpiling water, pushing prices even higher.

“Non-water users are really playing havoc with the market, particularly in seasons like this when there are low inflows,” Mr McGavin said.

Privacy rules prevent farmers knowing who is buying water rights, even though there is a state register. Picture: Jake Nowakowski

“When there is no clear information people can spruik disinformation and scare the market.”

Victorian Farmers Federation water council chairman Richard ­Anderson is angry at the situation, saying: “Do you allow just investors to come and buy water and never use it because they don’t own any land?’’

Cohuna dairy farmer Rob Campbell said 40 farms between Swan Hill and Echuca would be closed in a year — he will soon follow.

To grow grass, his water costs at current prices were two-thirds of the farm’s income, let alone paying feed, electricity and maintenance bills.

“Because the water was unbundled from land, it’s out of reach for young farmers to buy it,” Mr Campbell said

Ms Neville said the NSW drought — not investors — were causing water prices to rise in Victoria.

Dairy legend to quit as industry goes sour

A dairy farmer whose grandfather started the Western Star brand is planning to close the door on four generations of milking.

Colac farmer Doug Chant said he planned to sell his entire herd of 140 cows as the industry “continued to spiral downwards” with high water prices and low return on milk.

“Age is catching up with me,” the 70-year-old said.

Fourth generation dairy farmer and former United Dairy Victoria/Victorian Farmers Federation head Doug Chant, 70, is planning to sell his milking herd. Picture: Mark Stewart

“I’m getting to the point in life I can’t continue and I don’t want my son to go through the woes we have.

“There’s a saying — the worst form of child abuse is to let your son come home on the farm.

“I’d be financially better off if I went home, shot all my cows and bottled the water they drink.”

Mr Chant is an industry icon, having served the Victorian Farmers Federation and United Dairyfarmers of Victoria over three decades.

With high costs and low income, he said he was watching “one of the best dairy industries in the world become an extinct industry”.

“That’s why farmers are leaving and the consequences of that are, that’s where your food comes from.”

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