The Australian Government is working to improve the efficiency and productivity of on farm irrigation water use and management. The On-Farm Irrigation Efficiency Program is part of the $5.8 billion Sustainable Rural Water Use and Infrastructure component of Water for the Future.
This new $300 million Program is aimed at assisting irrigators in the southern connected system of the Murray-Darling Basin to modernise their on-farm irrigation infrastructure while returning water savings to the environment.
The new program will be modelled on the arrangements trialled through the On-Farm Irrigation Efficiency (Pilot Projects) program.
It is expected that the program will commence in mid 2009 following a period of consultation with key stakeholders on the program Guidelines.
Program questions and answers
What is the new On-farm Irrigation Efficiency Program?
The Program aims to acquire water entitlements for the Commonwealth Environmental Water Holder resulting from water savings generated by the implementation of approved projects to improve the efficiency and productivity of on farm irrigation water use and management.
The initiative complements other elements of Water for the Future, such as improving delivery system efficiency, water purchasing and developing more accurate metering of irrigation water usage.
Projects under the initiative will assist in supporting regional investment and development, strengthening regional economies and supporting local communities. It is expected that long term economic and environmental benefits will also arise, including assisting farmers and irrigation communities to adapt to a future scenario of reduced water availability due to climate change.
Will the Commonwealth apply any conditions to the program being open in a State?
Yes. As with other irrigation efficiency programs, water entitlements transferred to the Commonwealth as part of this program must be treated as being outside any State trading limits such as the Victorian 4% cap on out-of-district trade.
How much Commonwealth funding is available?
The Australian Government has allocated $300 million for this initiative from the $5.8 billion Sustainable Rural Water Use and Infrastructure component of the Water for the Future plan.
When will the Program commence and conclude?
The Government will undertake consultation with key industry stakeholders to discuss implementation issues with them before the Guidelines for the Program are finalised. Once the final Guidelines have been approved, the Program is expected to commence in early 2009-10 with funds distributed to successful applicants through three rounds over the next 4 years.