Those are the phrases that have been used to describe the proposed increase to water charges proposed by the Independent Pricing and Regulatory Tribunal.
Southern Riverina Irrigators said the report, now open for public consultation, recommends a 184 per cent increase in water charges attached to the delivery of water by 2029.
It comes at a time when irrigators are fighting the Federal Government’s water buybacks under the Murray-Darling Basin Plan, other policies deemed by rural Australia as “anti-agriculture” and the same cost of living pressures as all other Australians.
Souther Riverina Irrigators CEO Sophie Baldwin said it only demonstrates that “government in Australia is well down the path of destroying irrigation in the southern basin”.
The charges will see the cost of using a megalitre of NSW Murray general security (NSWMGS) water on farm rise from $14.60 in 2024 to $41.45 by 2029.
This cost increase is exclusive of any Murray Irrigation Limited (MIL) water charges.
Ms Baldwin said once fully implemented, it will impact on the vitality of the region.
“Quite simply, it is becoming too expensive for farmers to irrigate now, let alone in the future with a 184 per cent increase,” she said.
“To put into context, a NSWMGS using 500ML on farm, is currently paying $7300.
“By 2029 that figure will be $20,725, and that is before a single drop of seed, fertiliser or diesel is used.”
Ms Bladwin said it is not unreasonable to expect the cost of water delivery alone to be well over $100 a megalitre in the not-too-distant future.
“It is quite simple really, government has an agenda to eradicate irrigation and decimate staple food production across this country,” she said.
“We have a Labor government and water minister Tanya Plibersek swooping in and taking advantage of stressed farmers and purchasing water via buybacks and then to top it off, those who chose to stay and continue farming are facing increases that are so significant, many won’t be able to afford the cost.”
Ms Baldwin said some of the largest increases come from the MDBA, who expect irrigators to bear the cost of “crazy changes” in system management.
“Without the economic wealth irrigation generates in this community, businesses will close, services including health and education will be threatened, and people will be forced to move away because there will be little opportunity and reduced jobs.”
Based on data from the 2024 Murray Irrigation Limited annual report, the annual average productive water usage for the MIL footprint is 553,000ML.
“These IPART charges will rip $23 million out of the Riverina before farmers face the torrent of other charges which have been imposed on irrigators,” Ms Baldwin said.
“It is just unfathomable madness and threatens food security for every single person living in this country.”
Ms Baldwin said it is well known that every dollar generated by irrigation has a flow on effect of between $4 and $7 into the wider community.
“This means this decision alone will cost our rural communities well over $100 million annually.
“IPART submissions are due December 9 and I urge anyone with a spare minute to voice their objection,.”
MIL is also urging its shareholders to make a submission to IPART, as it prepares its own.
“Murray Irrigation strongly opposes these price increases, and is in the process of finalising a formal submission to voice our concerns,” the company said.
MIL staff are available to assist shareholders in preparing a submission, by calling the customer service team on 1300 138 265.
It has also provided a guideline of the themes and ideas that can be used in submissions on the customer update section of its website.
In this guide, MIL says the price increases are simply too high and that the increases are unprecedented.
It also highlights that the price of commodities is not increasing at the same rate as these fees, and that the “farm sector cannot absorb these price increases”.
To make a submission, go to www.ipart.nsw.gov.au/Home/Reviews/Have-Your-Say.
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