Demand for space to “park” carryover irrigation water is outstripping supply, throughout northern Victoria, as farmers seek to gain security for up to two years.
Waterpool chief executive Peter Lawford said cheap water and good rain dampened irrigation demand.
“We have had rainfall events when watering would have occurred, therefore water hasn’t been used – so they have a choice, they sell it, carry it over, or potentially lose it,” Mr Lawford said. “There is a chance a whole bunch of people could lose water.”
Mr Lawford said those without allocation shares would be affected, if they couldn’t find space for their water, through a commercial venture or neighbour. Cheap prices for water, across Victoria earlier this week it ranged from $28 to $40 a megalitre (ML), were likely to extend into next season.
Mr Lawson said Waterpool’s entire allocation had been taken up, with a “ridiculous” amount of expressions of interest for space.
“We will be able to service about half of those, but, pardon the pun, there’s still a lot of water to go under the bridge.”
Goulburn-Murray Water (GMW) resource manager Mark Bailey said irrigators could carry over water in either their high, or low, water accounts. “At GMW we are not stopping anyone carrying over water, against low or high reliability accounts, but there is no ability to create new low reliability water shares (LWRS). Wherever there is someone selling them, there is a buyer.”
Dr Bailey said it was an individual business decision, as to whether to carry over water into next season.
“If they have bought water in from this year, are they holding over too much? That’s that’s not for me to say, that’s their decision.”
But he said irrigators needed to understand the water system operating rules, which were last reviewed in 2012.
Nanneella dairy farmer Brett Gledhill said he would be storing water, for a neighbour.
He said “parking” allocations appeared to be quite common, across the region,
“Everybody is, I know of some blokes that have parked 700-800ML in low reliability, and are now going to start parking it against high reliability.”
“What a lot of farmers are trying to do is secure enough water for two years, say its $30/ML and it goes up $5-10, they are already in front, for the next few years.
“If we have a couple of dry years, they are well and truly in front.”
Waaia farmer James Dillon said there should be capacity to park water, as not everyone would be using all their low reliability shares.
“I’m carrying over 200ML, I’ve got the shares to hold it, and I’ll take someone’s 250ML and park that too,” Mr Dillon said.