Farmers make desperate pleas as water prices skyrocket

Fed-up Victorian farmers are demanding greater transparency on water trading as the cost for the precious commodity skyrockets, raising fears of farmers being forced off the land and rural communities plunged into crisis as summer looms.

The price of water in Victoria’s north is set to rise to record levels this summer if changes to water trading are not made soon, forcing scores more farmers off the land and rural communities into crisis.

President of the United Dairyfarmers of Victoria (UDV) Paul Mumford said dairy farmers were already looking to secure stock feed at reasonable prices in case they could not afford to irrigate their properties over summer and grow grass for their milking cows.

“You can assume the competition for water for agriculture will likely continue to push the water market up,” he said.

The cost of precious water in Victoria’s north is now eight times higher than it was just 18 months ago.

It’s led to desperate pleas by farmers for the State Government to make its water register transparent before summer hits.

Under current regulations water does not have to be attached to land, but can be traded as a commodity by business people and companies for profit, like stocks.

Water Minister Lisa Neville told the Sunday Herald Sun an ‘options paper’ on the water register would be released next month.

Farmers are hopeful the paper will recommend making the water register completely transparent.

The cost of temporary water allocations in Victoria’s north has skyrocketed from $100 a megalitre to nearly $800 a megalitre.

It’s now $200 more than when the Sunday Herald Sun reported dairy farmers were culling their herds and trying to sell their properties because they were going broke.

The Victorian Farmers Federation (VFF) warned the price could rise even higher as summer hits.

Farmers in Victoria are demanding greater transparency on water trading. Picture: Jake Nowakowski

The man charged with developing a plan for Australia’s dairy industry, former Victorian Premier John Brumby, has revealed transparency of water trading was a key issue for farmers.

“Dairy farmers are price-takers and compete in an international market, if the costs are too hard they simply can’t compete,” he said.

“The industry won’t grow if costs are rising faster than the price that farmers are receiving so costs are an important issue.”

Mr Brumby, who is chair of the Australian Dairy Plan, said “certainty and stability of water supply” was also a big issue for farmers.

VFF Water Council president Richard Anderson called on the State Government to make its water register transparent as a matter of urgency, so farmers could see who and what was dealing in water, and driving up the cost for farmers.

John Brumby says the certainty and stability of water supply is a concern for farmers. Picture: Chris Eastman

Mr Anderson said he had been talking to Water Minister Lisa Neville “for quite a few months” about need for an urgent change so speculation around who owned and was trading water would end.

A number of high-profile Melbourne and international identities, business people and corporations have been rumoured to be trading water, he said.

“I have said that water shouldn’t be any different to the Stock Exchange rules, where if you are a buyer of shares in a listed company, once you get to a certain percentage, you or your nominated parties have to publicly declare it,” Mr Anderson said.

“And that needs to happen sooner rather than later.”

Under current regulations, individuals and companies can own and trade water as a commodity, without owning land.

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Ms Neville said an annual water register report showed most trades were between farmers.

“We said we’d consult with farmers about providing more detail about individual names and addresses of those buying and selling water and that work is underway,” she said.

She said the last time water reached these prices was during the millennium drought when it got to $1200 per megalitre.

“The prices currently are a reflection of extremely dry conditions across NSW and Victoria and reflects irrigators wanting to be prepared for the season,” Ms Neville said.

“A water register won’t fix high prices but will assist in building confidence in the market.

“An options paper that reflects our consultation to date will be released in October.”

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