UPDATE: Federal Water Minister Murray Watt has just announced the purchase of an additional 130 gigalitres of water from the southern basin, a decision that poses a serious threat to Australia’s dairy industry. This urgent move is set to escalate water prices and competition, deeply impacting irrigation-dependent farmers nationwide.
The Australian Dairy Farmers (ADF) have condemned the buyback, stating it is “taking away water from farmers.” ADF President Ben Bennett emphasized that dairy farmers have already sacrificed significant water rights since the millennium drought to support river health, and this latest action adds more strain to an already vulnerable sector. “Buybacks create insecurity and make food production unsustainable,” Bennett warned.
In a stark reminder of the stakes, Stephen Brown, a dairy farmer from Gunbower, questioned how the government plans to deliver even the existing water supplies, stating, “It’s hogwash and destroying our rural communities.” Brown reminisced about when the Murray-Darling Basin Plan was first proposed, recalling his father’s warnings that these policies would ruin irrigation. “Every megalitre of water is now like a gold bar,” he lamented, underscoring the profound economic implications for rural areas.
Andrew Leahy, chair of the Victorian Farmers Federation (VFF) water committee, asserted that Victoria will bear the brunt of this decision. “This latest move is unforgivable and will only worsen the relentless drain of water in Victoria’s irrigation heartland,” he stated. The exact amount of water to be taken from Victoria remains unclear, but Leahy is adamant that the state will be unfairly targeted due to its high reliability water products.
Zara Lowien, Chief Executive of the National Irrigators’ Council, described the announcement as a “slap in the face,” highlighting the adverse consequences for farming and rural communities. “They are now facing less water and higher costs that are not being adequately addressed,” she lamented.
Concerns over the long-term viability of irrigation districts were echoed by Justin Hanney, chair of Goulburn-Murray Water (G-MW). He indicated that these buybacks are undermining the intended balanced outcomes of the Murray-Darling Basin Plan. “Open-tender water purchases have previously had a negative impact on communities,” he stated, warning that the current approach could lead to inflated bills for consumers.
Furthermore, Suzanna Sheed, co-chair of the Goulburn Murray Irrigation District Water Leadership Forum, stated that the buybacks would “significantly damage” the agriculture sector, representing a “devastating blow” to irrigation communities and regional economies.
The situation is developing rapidly, and farmers are calling for immediate action. Bennett insists that no further buybacks should proceed without a comprehensive assessment of the potential damage to dairy farmers, processors, and rural towns. The emotional toll on these communities is significant, as families face uncertainty over their livelihoods.
As the government moves forward with this controversial buyback, the implications for Australia’s agricultural landscape remain dire. Stakeholders are urging a reconsideration of these policies to ensure the long-term sustainability of food production and rural economies.
What happens next is critical: will the government heed these warnings, or will the buybacks continue unchecked, threatening the future of Australia’s dairy industry?
