Early efficiency costs water-savvy farmers

WELL PREPARED: Third-generation Proud family members, Brett, front, and, back from left Philip, Andrew and cousin Linton. Picture: SARAH REED Source: AdelaideNow

Irrigators say that as a result, they are being unfairly disadvantaged compared with their interstate counterparts and should be compensated for water-saving investments already made.

They want 6 per cent of the $12.8 billion Water for the Future package - or about $780 million - to be spent in South Australia, in line with the state's river water-use.

Irrigators say hundreds of millions of dollars are being spent interstate to encourage farmers to do what South Australian producers have been doing for the past 20 years.

Farmers in Victoria and NSW are being paid to improve their water infrastructure to help restore environmental flows to the River.

"That puts us at a competitive disadvantage compared to irrigators who have their irrigation subsidised," third-generation Loxton grape grower Brett Proud said yesterday.

Mr Proud said after spending close to $1 million on water-saving infrastructure in the past 15 years, there was nothing more he could do to improve his water efficiency, and he was now not using all of his water allocation.

"Irrigators here are going broke because they have already spent their money on infrastructure," he said.

Brother Andrew Proud said the decision not to compensate Riverland farmers could "end up being the demise of the whole Riverland."

"At the moment there is no future, we need to survive and we need to do something so the next generation have something to look forward to."

Sheridan Alm, a citrus and grape producer at Pyap, said it was not about getting government handouts, but having an equal playing field with interstate producers.

South Australian Senator Nick Xenophon said money allocated to SA through the Private Irrigation Infrastructure Program was sitting largely untapped.

He said he would pursue back-payments for SA irrigators once the new Government was elected.

"This is an urgent and fundamental issue because what is at stake here is one of the nation's major food-producing areas," he said.

Water Minister Penny Wong said she would be prepared to look at Senator Xenophon's proposal for distributing infrastructure funding once outcomes of the first funding round were finalised.

She said none of the $110 million fund had yet been spent, but an undisclosed amount for the first round would soon be allocated.