Readers would be aware that the Federal Government has announced a buy-out of small irrigators in the Murray Darling Basin. These properties go back to the 1880s when inland irrigation was first developed, and they have grown with war veterans and postwar immigration to make up a core sector of the basin communities. The generations that have followed are hard-working and productive.
The offer to irrigators is $150,000 to stop and an additional $10,000 to remove vines or orchards from their land. The farmer (known as a Blocky) is left with the land and house. Anyone familiar with these areas would know that a house in the desert is not the greatest asset for future mobility, but the Government seeks to save 48gigalitres of water usage.
Down the road, it would not be uncommon to see a large-scale corporate-managed investment scheme being developed to grow the same crop. How can this be?
What is happening to the long-term food-bowl producers should serve as a chilling lesson for what's in store for the rest of us, when in good faith we commit our working lives to government natural-resource policies. If these people can be treated this way, by definition so can the rest of us. When a government stuffs up, we become the cannon fodder this probably applies to all small business operators in Australia.
It is no secret that thanks to all governments, irrigation water has been over-allocated (especially given the climate variation in Australia) but what really turbo-charged this situation was the separation of water and land titles and the development of a water trading market.
Previously, about 20 per cent of water entitlement was unused, but once saleable this was quickly bought up by new developers, (mostly managed investment schemes) with huge cash flows coming from government-approved tax-avoidance schemes. Prices peaked at $1100 per millilitre recently (for temporary water) until their requirements were met, then fell to $250/ML.
We now find ourselves really over-allocated and in a completely unfair market. That 20 per cent had previously been room to move for environmental flows, but water trading has fixed that. Drought-ravaged, import-dumped producers are no match for managed investment schemes which make huge profits from the investors who gain tax-avoidance status from the schemes.
Wine grape growers and processors took 30 years to grow an industry to a prime exporter status. It then took two years of Government tax schemes to massively oversupply the market. These incentives continue.
The Government resorts to ''let the market rule'' when water is the issue, but what is a market? Surely it must be where participants have some competitiveness. Further, transfers out of the irrigation basins cause instability and a possible lack of viability for the remaining irrigators, communities, etc. Murray Darling Basin irrigators also have been forced to endure competition from overseas suppliers under the free market ideology, that is, import dumping which inevitably pushes domestic producers under. Australians must think carefully about losing national food self-sufficiency. The rest of the world does not screw its farmers. We are, and we blame them for what is actually government policy.
There is, however, a bigger agenda at work. When it comes to control of the food supply, both major parties are supporting the transfer of ownership from individual owner operators (about 120,000) to large indirectly subsidised (via the tax system) corporate owners (about eight). The biggest land holder in dollar terms is one of those eight and about 80-90 per cent of tradeable water has gone to those eight.
So what about the 48GL to be saved? Currently, under the 2020 plantation vision, we are, via managed investment schemes, consuming about 200,000ha a year of cleared high-rainfall farming country to convert to plantations for wood chips (again, very unfair competition for farmers in these areas).
In an area with an annual rainfall of about 800mm a year, each hectare of plantation consumes about 1.5ML of water over and above previous land use, according to CSIRO.
Every 32,000ha will wipe out 48GL of water catchment which would otherwise, have found its way into our rivers and aquifers. Like most of Australia, the Murray Darling Basin catchment is not short of these plantations.
Does the Government actually know what the left and right hands are doing? This is reaping havoc with the environment, people's lives, market forces and our future.
Robert Belcher is managing director, Sustainable Agricultural Communities Australia, a grazier in the Snowy High Country and chairman of Snowy River Interstate Landcare