Rural specialist Elders has poached four water brokers from leading player Waterfind as it looks to grow its presence in the $24 billion water market.
Experienced brokers Anthony Bent, Kevin Rochow, Matthew Moar and Peter Gale have all joined Elders and will be based at the group's head office in Adelaide.
Securing entitlements has become crucial for farmers as they look to secure their future irrigation needs amidst changing weather patterns, the growth in water-intensive crops - like almonds - and a lucrative market for those selling excess water.
At the same time, the record prices paid for water rights in some regions has raised the stakes for water brokers.
Last October, Australia's largest listed agricultural property fund, Rural Funds Group, paid $34 million to acquire a 9549-megalitre (ML) water entitlement, in one of the biggest water deals in the Murrumbidgee River irrigation area.
The signing on of the four former brokers grew the Elders team to 17 active brokers.
It will give it added clout in the Australian water market, where Waterfind – which calls itself "Australia's leading water exchange" – and Ruralco have large market shares.
"The recruitment of this team of professionals enhances our full service offering, delivering valuable advice and transaction services to our clients, in conjunction with our existing technical services and commodity marketing capabilities," Elders' General Manager of Real Estate, Tom Russo said.
"Our focus in the water space is on creating a capital-light broking business based around high-calibre professionals who deliver value to our clients.
“We do not currently have any intention of investing in water infrastructure businesses".
Mr Russo said Elders also had over 150 agronomists working throughout its network, many of whom provide advice regarding client water requirements.
"Our brokers can then assist those clients to either acquire water required for their primary production, or find solutions to monetise their excess water," he said.
Goulburn-Murray Water (GMW) northern Victorian resource manager Dr Mark Bailey said system reserves, built up during 2016-17 pointed to a mainly positive outlook, for water availability in the new season.
This year’s irrigation season would start August 15.
“It is worth remembering that flows into the major storages are still well below average,” Dr Bailey said.
Catchments were starting to respond to rain, after the very dry conditions of May and June.
He said the current flows were those that would be expected under a Dry to Very Dry scenario.
Dry was described as being ‘inflow volumes to major storages that are greater in 90 years out of 100’ and Very Dry being ‘inflow volumes to major storages that are greater in 95 years out of 100’.
Bureau of Meteorology (BoM) seasonal outlook data indicates the below-average rainfall across all of northern Victoria would continue from now until September.
Dr Bailey said the dry outlook would not affect water deliveries in any northern Victorian water system.
As part of the seasonal determination update for high-reliability water shares (HRWS) the Murray system remained unchanged at 66 per cent, the Goulburn and Loddon systems at 36 per cent and the Campaspe system at 100 per cent.