A State approach to ensuring the long term viability of irrigated farming areas of Victoria Bryony Grice Manager Sustainable Irrigation

Main types of irrigated agriculture in northern Victoria Horticulture Primarily in Northern Victoria (GMID and Sunraysia) Non-interruptible – due to no substitutes for water, fixed plantings Gross value of farm production $1.1 billion in 2007/08 A number of major processors including Sunbeam, SPC Ardmona, Unilever Over 8,700 people employed directly in farming and processing ( ) Dairy Primarily in GMID Semi-interruptible – purchased fodder and water sales can replace pasture, but not always profitable Farm gate production $873 million (07/08) 15 dairy factories operated by five major companies Over 7,000 people employed directly in farming and processing 30% of Victoria’s milk production, 20% of national production Water entitlement holding valued at $2.62 billion Crops & Fodder Primarily in GMID Interruptible – farmers can irrigate or sell water Hay and silage crops produce fodder for dairy industry

How is water use changing? 2005 water availability and use AllocationsMurrayGoulburn 2004/05100%

How is water use changing? 2008 water availability and use AllocationsMurrayGoulburn %57%

Water market facilitating change Trend in increased trade of allocation

Problem of variable water availability Less reliable entitlements for all Urban water users –Longer, more frequent and more severe water restrictions Irrigators –Zero allocations, no delivery of water, no effective carryover trade Groundwater and upper catchment users –Increased time on restrictions/bans, increased groundwater use, less reliable farm dams, higher proportion of water captured in farm dams Environment –Less frequent floods, loss of river red gum forest, fewer bird breeding events, fewer native fish, degraded wetlands Trees

Solving the Problem – A Sustainable Water Strategy Ingredients include: 1.Science – to inform (not drive) decision-making and to help defend decisions 2.Plan manager – to provide conceptual framework, drive collaboration and engagement processes 3.Regional delivery agents – to ground-truth information and decisions to make sure plan in able to be implemented 4.Community champions – to help make sure impacts of decisions are included in plan and make sure community members are engaged.

Reforming Water to enable growth Modernisation –GMID/Sunraysia –Environmental manager and works Water register –Security of entitlements –Probity –Efficient transactions Enhanced water products –Unbundling (trade of allocations critical) –Carryover/Spillable water account maximise flexibility, protect entitlements

Key tools for adapting & risk management for all entitlement holders

Modernisation – a total approach Institutions Markets & entitlements Investment in modernising public infrastructure Investment in modernising private (on farm) infrastructure

Irrigation Modernisation Outcomes Smarter, more efficient and effective use of water Viable system which is affordable to users in the future One that supports the irrigator but also the community

A Total Approach More than the public system is important: –Drainage –Farm use –Impacts on third parties and environment –Legacy of history cost –Supplying world food demand A total approach enabling irrigators to make the best product possible to meet growing demands