Lower water prices make rice attractive option

Rice growers in southern NSW and the Riverina are anticipating a 500,000-tonne crop in April. See how the season is shaping up.

Rice crops are pushing back into favour, buoyed by lower water prices and warm days.

While growers are not expecting to see any records at harvest in April, there are some positive signs.

Rice industry leaders predict the Australian crop will be around half a million tonnes, similar to 2022-23. This is despite an estimated 700,000-tonne crop projected by the Australian Bureau of Agricultural and Resource Economics and Sciences.

If prices from 2022-23 are to be a guide, growers received a record $461 a tonne for medium grain Reiziq varieties.

Rice grower Jeremy Morton of Moulamein in southern NSW.

Southern NSW grower Jeremy Morton from Moulamein said conditions for rice had improved considerably in the past month compared to before Christmas.

He has planted 270ha of rice, which is within the normal range, and the summer crop complements a winter program of wheat, barley and canola.

Water prices were steady in the Murray Valley at around $25 a megalitre.

Mr Morton said back at planting water prices were closer to $100 a megalitre.

“We had a pretty challenging start to the season with cool weather and untimely rain, which made establishment difficult,” he said.

When harvest arrives in April, the outcome is likely to be mixed, with Mr Morton expecting a mix of results in both quality and yields.

Rice in the Riverina. Photo: Emma Jane Industry

Rice Growers Association of Australia president Peter Herrmann said aside from the duck pressure, there were some positive indications for the crop.

Mr Herrmann said he sensed that rice was making a comeback in popularity.

When water prices are higher, rice has to compete with other crops, such as cotton, for the number of hectares farmers are prepared to plant.

Given the vesting arrangements with rice marketing in Australia, gauging the exact amount planted this season was challenging.

However, those in the industry tipped growers would yield about 500,000 tonnes.

Rob Brown grows rice at Blighty in southern NSW and said the season had started slowly. His crop had been affected by ducks.

However, he was hoping to see yields of 11.5 tonnes a hectare.

Typically, Riverina crops can yield from 9 tonnes/ha to 12.5 tonnes/ha.

“From now on, we just need plenty of sunlight and (night) temperatures above 17C,” he said.

He said the cost of production was looking good, with water prices at $30 a megalitre in his area.