Overview of recent changes in irrigated agriculture in the Murray-Darling Basin: 2006-07 to 2008-09
Waterlines report 64 - November 2011
From 2006-07 to 2008-09, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) conducted an annual survey of 900 irrigation farms in the Murray-Darling Basin. Based on this three-year data set, ABARES has prepared an overview of changes in irrigated agriculture in the Basin for use by the Commission in its 2011 biennial assessment.
The report provides analysis on water reform, water trading, structural adjustment and water use efficiency in the Basin.
The report shows that drought and changes in commodity prices have had a far greater influence on farm incomes than changes in water policy, but that changes made under the National Water Initiative have allowed irrigators to respond more flexibly when dealing with drought and variable commodity prices.
Water reforms, including water trading, have benefited irrigators by allowing them to purchase water to maintain production or to generate additional income by selling water. The survey results also demonstrate that water trading is becoming more common, with 50 per cent of farmers surveyed having participated in trading water allocations in 2008-09.
The report suggests that the progressive removal of barriers to water trade, and the greater consistency and transparency of water access entitlements, have helped to improve the efficiency and productivity of water use in the Murray-Darling Basin.