The federal government is allowing unused Water for Fodder to be carried over

The federal government set the program up, to provide up to 100 gigalitres of water to farmers in the southern Murray-Darling Basin to grow fodder and pasture.

More than 500 Victorian irrigators were successful in the ballot for 40GL of water, after the South Australian government agreed to turn on the Adelaide Desalination Plant.

The Water for Fodder team has told successful applicants, who each received 50GL of water, it had been anticipated restrictions on carryover might be waived, if drought conditions improved.

"This means any water you are unable to use now can be carried over to next water year," a team spokesman said.

"We hope this additional flexibility will allow you to use your water to grow even more fodder.

"You still must use your water to grow fodder, and cannot move the allocation to a different account or sell it."

Federal Water Minister Keith Pitt said he made the decision following recent rain events and feedback from farmers participating in the program.

"Under round one of the Water for Fodder program, the allocation received must be used in the water year in which it was allocated," Minister Pitt said.

"That restriction was in place because we wanted farmers to use this water straight away to grow fodder in response to the drought.

"However, thanks to some good rains like 80 millilitres in Deniliquin in March, farmers told us they'd be able to produce more with the Water for Fodder allocation if they could carry it over into the 2020-21 water year."

He said the change gave more flexibility, to those who received an allocation, in round one's ballot.

"We're considering feedback so we can maximise the potential of the program and make this water count for drought-affected farmers and Australian's who rely on their produce.

"I would like to thank South Australia for their assistance in providing the water for the program through the increased operation of their desalination plant."

Widespread rain, over northern Victoria and the southern Riverina, saw water prices plummet.

Earlier this year, temporary water was trading at $700/ML in some districts, while the Water for Fodder allocation was $100/ML.

The water must be used in full by the end of the next water year.

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Edan Cockerell, Numurkah dairy farmer, missed out on the ballot but said he wasn't concerned about those who received water being able to carry it over.

"They have technically paid for it so normal carry over rules apply," Mr Cockerell said.

"And if we had some of it, we'd likely be looking to carry it over too, given how this autumn is shaping up," Mr Cockerell said.

He said there was the possibility of the water being returned to the consumptive pool.

Mr Cockerell also raised the question of whether or not it would affect trades, through the Barmah Choke, if carryover were not allowed.

"If you don't allow it, do you refund the money or reallocate water in the second round?" he said.

"If they purchased other water or received entitlement allocation which water are they actually carrying over?"

Hay contractor Luke Felmingham, Invergordon, said he had about 15ML left from his 50ML allocation.

"We would have probably sacrificed, or lost it, as we couldn't physically use the water," he said.

"It's handy for us."

He said some people, who were seeking to water up crops, were holding onto it.

"Probably that's their (the authorities) main drama; natural rainfall has been very kind this year."

"In fairness to Water for Fodder, they had to do what they have done."

But he said some irrigators missed the summer crop season, as it took so long to release the water.

"It's really only let them water winter crops, ryegrass, or cereal."

Mr Felmingham said he received his allocation in January, using it to water lucerne.

Had it not rained, he said he would have pre-irrigated wheat, for hay.

"We have had a really great start to the year - and it just keeps raining.

"The paddocks that have been irrigated, over summer, are saturated," he said.

"After every little shower of rain, the water lies on the paddocks."

John Bruce, Barooga, NSW, said he received Water for Fodder through one of two applications he put in.

"We have got about 20ML left; it's been pretty handy," he said.

"We are trying to work out what to do with it."

He said he sowed 40 hectares of lucerne, before the scheme came in, watering it from a centre pivot.

Hay had been cut, and Mr Bruce said he might also be able to take silage off the paddock as well.

He runs 1500 Merino ewes and 500ha of winter crop.

NSW has been on zero allocations for two years, and Mr Bruce said it wasn't looking too promising, this coming irritation year either.

But he applauded the decision to allow carryover.

"It's good common sense, it's good to see, really."

Katandra West dairy farmer Robbie Glover runs a 200 head Holstein herd and said he had 9ML left, after using his allocation to water annual ryegrass, sub and Shaftal clover.

He said the weather would determine whether or not he decided to carry over the remainder of the water.

"I'm hoping its going to rain next week and at the moment they're still talking about a wet June," Mr Glover said.

"If we start watering now, in mid April, it can become really wet.

He said he used the 41ML to water 40 hectares, but didn't receive it until late March.

Water prices were around $560/ML, at the time.

"It's a $20,000 saving, which is like receiving a $20,000 gift card, really," he said.

"We are very grateful about getting it, don't you worry about that."

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