RISING electricity prices are putting the brakes on irrigation system upgrades, according to National Irrigators Council chief executive officer Tom Chesson. Costs have more than doubled in South Australia in the past three years, and irrigators in the Murray Valley region are reporting 60pc hikes during recent years.
These rises are mainly due to rising supply maintenance costs and renewable energy rebate schemes, with the carbon tax only contributing a relatively small percentage to the rising prices.
"We're getting mixed messages from governments," Mr Chesson said.
"On the one hand we're being told to be more efficient with pipes and pumps, but on the other hand, they're making energy so expensive that while you might be water-efficient, you're not productive.
"Governments need to decide what their priorities are."
National Farmers Federation chief executive officer Matt Linnegar says electricity prices are a real concern.
"In my previous role, managing a large irrigation company in southern New South Wales, I can absolutely guarantee that for some of the guys who switched from gravity-fed open channels to piped, pressurised systems, their electricity costs are far higher than their water costs," he said.
"In terms of innovating and adjusting and staying ahead of the game, we might have to do more in that area.
"Perhaps we can use a low-head pipe supply, rather than high-pressure, in some instances, to try and cut down those costs."
Federal Water Minister Tony Burke said on-farm projects he had visited combined water and energy efficiencies, which helped to provide "something of a buffer against energy prices".
*Full report in Stock Journal, August 30 issue, 2012.