IRRIGATORS are urging the Victorian and Federal Governments to provide on-farm water savings grants of $4000 a megalitre as part of the Food Bowl Modernisation Project.
The Victorian Farmers Federation says on-farm savings are a crucial, but neglected, aspect of the $2 billion Food Bowl project.
"On-farm water savings can be delivered faster and more efficiently than other savings," VFF water council chairman Richard Anderson said.
"Yet the Government is pouring hundreds of millions into automation and new meters to create a 21st Century delivery system, while we're still watering our farms with 3000-year-old technology.
"It's time for both governments, state and federal, to put some money on the table for us irrigators to deliver water savings in return for some of those millions on offer."
Mr Anderson said irrigators would quickly prove how rapidly water savings could be delivered if offered savings grants of $4000 a megalitre.
The Bamawm irrigator said $4000 was a fair price, given Victoria was spending $1 billion to save 425,000 megalitres in stage one of the Food Bowl project ($4444 a megalitre).
Under stage two of the project, the Federal Government is willing to contribute another $1 billion to create about 200,000 megalitres (up to $5000 a megalitre).
Mr Anderson said a number of key conditions could be imposed on the grants to protect irrigators and the government, which include:
The Government is offering irrigators an up-front payment on the grants, equal to the market value of the water savings on offer, for example $48,000 (20 megalitres at $2400 a megalitre). The payment on 20 megalitres would be $80,000 at $4000 a megalitre.
Capping the volume of water savings irrigators could offer, at up to 20 per cent of their entitlement.
Irrigators would sign a letter of intent to transfer the water savings to the government. However the irrigator would retain ownership of the water entitlement and allocations made against it until the on-farm work was completed.
Once on-farm work was completed local DPI officers would inspect the receipts and works before signing off on the final payment ($32,000 in the example above).
If an irrigator defaults and no work is done, the government exercises its rights under the letter of intent and takes the water at market price of $2400 a megalitre. The irrigator has the option of repaying the money to retain the water.
Mr Anderson said on-farm grants would help protect the water market by ensuring irrigators spent the money on boosting water efficiency, not just take the $4000 and buy water.
Foodbowl Unlimited chairman and orchardist John Corboy has backed the idea of on-farm water savings grants and said $4000 was "pitched at the right level".
Victorian Water Minister Tim Holding was unavailable for comment.
