21 February 2025

Fears supermarket food costs will rise as irrigators face massive price hike for water by 2030

| Oliver Jacques
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Protest rally holding placards

Farmers across the MIA who protested against buybacks last year are now facing another threat. Photo: Leeton Shire Council.

Irrigators in the Murrumbidgee region are facing a 142 per cent increase in the cost of their water by 2030, with a representative body claiming this will kill family farms and result in further rises in the cost of food on supermarket shelves.

Two NSW Government agencies, Water NSW and the Water Administration Ministerial Corporation (WAMC), charge farmers for licences and extraction of river water. Both want to massively hike their fees, blaming factors such as climate change risk, rising management and compliance costs and upgrades to technology for doing so.

The two agencies have proposed changes that will result in price rises for NSW irrigators of up to 341 per cent within the next five years, with Murrumbidgee (142 per cent) and Murray River (192 per cent) farmers facing substantial cost increases.

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The regulator, the Independent Pricing and Regulatory Tribunal (IPART), is considering the agencies’ submissions for price increases and will make a final decision on the prices by July.

“These exorbitant price hikes currently before IPART will drive family farms out of business and Aussie food off the shelves,” lobby group the NSW Irrigators Council says.

“Australian farmers are already struggling to compete against the rising tide of imported fruit and vegetables, dairy, meat and cereals, with cheap food imports surging by $7 billion in two years to almost $40 billion in 2023-24.

“If the NSW Government wants NSW households to eat local and support our farmers, then it must intervene or risk exorbitant water bills proving the final straw. Many farmers are already under intense financial pressure with rising input costs in interest rates, fuel, insurance, machinery, wages and energy, and price impacts from environmental water recovery.”

Farmers have consistently been protesting against government policies for the past decade. Photo: Oliver Jacques.

The Riverina and Murray region produces an estimated $3 billion worth of agriculture annually. Many feel this industry is now under threat, with government buybacks of irrigation water also harming the local economy.

Griffith Mayor Doug Curran has spoken out about the looming price rises.

“We’re constantly told no compulsory buybacks are taking place, but they are making it so hard to be an irrigator and provide food and fibre for our nation,” he said.

“We need common sense, we need compassion, we need people that understand the issues, rather than making policy based on elections.

“It’s time we stand together and say enough is enough.”

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Farmers along the Peel River, in North West NSW, are facing the highest increase – 341 per cent by 2030. The peak body representing them, Namoi Water Inc, is scathing of this prospect.

“The cost of irrigated agriculture continues to skyrocket, and while the leaders of our state and country continue to enjoy eating and wearing the produce from irrigated agriculture on a daily basis, their poor comprehension of rural and regional economies coupled with their contemptuous attitude to anything outside of the cities sees the cost of water management and delivery blow out at ridiculous rates,” Namoi Water Inc said.

The NSW Irrigators Council is urging farmers and concerned consumers to contact IPART through its website to voice their objections against the proposed increases.

Original Article published by Oliver Jacques on Region Riverina.

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