Livestock producers crippled by spiralling SA Water mains bills have welcomed SA-Best’s election commitment to offer interest-free, long-term loans for them to build on-farm water infrastructure.
A Coorong District Council feasibility study found farmers in the area had spent more than $7 million on lined catchments and desalination plants since price hikes began a decade ago.
It is hoped loans would put similar projects in reach of many more farmers.
SA-Best candidate for Hammond Kelly Gladigau says the cost of the interest-free loans, available for up to 10 years, would be offset by increased economic activity in the regions.
“We cannot let this financial burden of water costs continue,” she said. “It is unacceptable when people won’t even leave their properties because a small leak in their irrigation system can push their water bills up by $10,000.”
Woods Well livestock producer Adam Merry called on the major parties to also support interest-free loans.
“It ticks a lot of boxes – from an environmental perspective saving water from the (River) Murray and is easy for the government to implement,” he said.
Mr Merry was among a group of water users unsuccessful in negotiating a bulk discount scheme with SA Water but says this offers a permanent solution.
“Getting a third-party agreement with SA Water was always a pipe dream and even if we could take $1 a kilolitre off the present price it is still extremely expensive water at $2.30/kL,” he said.
“Every other form of water security from storage catchment to desalination comes in at under $2/kL over 25 years but a lot of producers cannot afford to outlay $200,000 without some support.”
But both Agriculture Minister Leon Bignell and Opposition agriculture spokesperson David Ridgway say it is not the answer.
Minister Bignell said the survey PIRSA undertook with Livestock SA had found the level of concern and problems faced varied greatly from region to region, “which is why a one size fits all approach, as suggested by SA-Best, is not the answer.”
“The problems faced by farmers in the South East are not the same as those in the Riverland or the Coorong region and it’s important we take into account the circumstances of each region in developing solutions,” he said.
Mr Ridgway said interest-free loans were a “bandaid solution” and would do nothing to drive down water costs in the long-term.
He said the Liberals would establish an independent inquiry into water pricing to reform policy and enable third-party access agreements that would massively reduce water costs.
Government urged to prioritise survey plan
FRUSTRATION is building about the lack of progress in a “90-day project” addressing livestock water security across SA.
More than 300 SA producers responded to a joint PIRSA-Livestock SA survey last year highlighting their main issues but more than two months later there is still no final report from PIRSA to discuss.
A PIRSA spokesperson said the report was “still being finalised,” but PIRSA would work with Livestock SA as well as state and local government in the coming year to review the outcomes and find solutions.
A similar industry and government joint project by the Department of Planning, Transport and Infrastructure and Primary Producers SA delivered $56 million in benefits to SA farmers in stage one alone.
Opposition agriculture spokesperson David Ridgway says PIRSA’s slow response is “unacceptable”.
“PIRSA must prioritise and finalise this report as soon as possible because many farmers are frustrated while they continue to pay excessive water bills while the department drags its feet,” he said.
Livestock SA chief executive officer Andrew Curtis says the cost of livestock water is a “handbrake” for the growth of flocks and herds in many parts of the state.
“The livestock industry is a significant employer to the state and if we are producing more livestock the number of people employed also grows,” he said.
Livestock SA will release its election wishlist early next week but wants funding and support to help producers improve water efficiency and implement new technology.
This includes grants and interest-free loans to support farm investment in water efficiency such as leak detection kits as well as on-farm desalination and storage projects.