The Federal Government has announced $350 million in funding to assist irrigation infrastructure reform in the Murray Darling Basin.

 

The funding will allocate $150 million over six years for round three of the On-Farm Irrigation Program from 2012-13 to support individual infrastructure improvement projects. The funding will be spent as follows: $4.0 million in 2012-13, $25.0 million in 2013-14, $75.0 million in 2014-15, $29.0 million in 2015-16, $10.0 million in 2016-17 and $7.0 million in 2017-18.

 

The funding will come from the existing resourcing of the Sustainable Rural Water Use and Infrastructure Program. 

 

Federal Minister for Sustainability Tony Burke said he will call for applications for the funding in the coming months.

 

"This program builds on the good work of farmers in improving water efficiency at an on-farm level. Irrigators have informed my department that they have spent funds for supplies and services from two previous rounds of this program almost entirely to the benefit of regional businesses,” Mr Burke said.

 

"I expect this to be the case also with the additional funding. Other benefits will be improved flexibility of crop rotation from new irrigation systems, reduced labour times and costs, reduced nutrient run-off and application rates, increased crop yields, the ability to spend financial savings on other on-farm upgrades, and more sustainable farms."

 

The Budget will also provide $200 million over four years ($25.0 million in 2012-13, $50.0 million in 2013-14, $75.0 million 2014-15, and $50.0 million in 2015-16) to pilot a program to integrate water recovery with the strategic reconfiguration of irrigation delivery networks.

 

The Strategic Sub-System Reconfiguration Program will provide funding for the purchase of water entitlements, the decommissioning of under-utilised or inefficient water delivery infrastructure, a replacement stock and domestic supply system if required and a disconnection incentive. The program will replace the existing Irrigator-led Group Proposals program.

 

The cost of program will be met from within the existing resourcing of the Sustainable Rural Water Use and Infrastructure and Restoring the Balance in the Murray-Darling Basin programs.

 

"The program is being developed in consultation with key irrigation water providers and will be flexible to encourage projects which work for the particular circumstances of each irrigation district,” Mr Burke said.