Bipartisan support has been given for cheaper water prices as the Queensland state election race enters the home stretch.
Labor joined the party to announce a 15 per cent reduction in water charges for farmers accessing the state-owned irrigation schemes, and half-price water specifically for fruit and vegetable growers.
This will start from July 2021.
Earlier this month the LNP announced they would cut water costs by 20 per cent and Katter’s Australian Party have promised a 25 per cent reduction.
The Australian Sugar Milling Council (ASMC) released a report earlier this year into irrigation water charges and their consistent increase over many years, putting forward a range of potential reductions between 15 and 25 per cent.
“So now we have commitments that fit within that range,” ASMC CEO David Pietsch said.
“It’s not just a benefit to the canegrowers and the sugar millers, it would also deliver broader benefits to the communities that rely on our industry.”
More questions than answers
Canegrowers CEO Dan Galligan said the industry was relieved to have secured solid promises from the major political parties.
He said the decrease would result in substantial savings for irrigators across growing regions
“So we’re talking tens of thousands of dollars, certainly for the average grower in the Burdekin, easily $10,000 to $15,000 will be saved by a 15 per cent reduction,” Mr Galligan said.
“The price of water and electricity were essential to our election pitch, so this is a really important initiative.”
Bipartisan support has been announced for cheaper water charges for irrigators across Queensland.(Supplied: Bundaberg Sugar)
But he said many questions still remained, including around the different reductions for cane and horticulture crops.
“Pumps don’t differentiate where the water is going, obviously, and a lot of our members grow more than just cane,” Mr Galligan said.
“So many irrigators will be trying to work out how that works if Labor forms government this weekend.”
‘We create the most jobs’
In the far north of the state Joe Moro has a crop of mangoes that are drip fed from the Mareeba-Dimbulah irrigation scheme.
He said the interest all major state parties have taken in water pricing is timely acknowledgement of the heavy lifting the industry has done this pandemic.
“By water pricing coming down, they acknowledge that it will create more jobs,” Mr Moro said.
“The horticulture industry is phenomenal for creating jobs, we create the most jobs in all the agriculture industries.
“And if farmers can make a dollar out of it, they will reinvest it.
“We have seen that in the Tablelands in particular, we will see more confidence.”
Bundaberg calls for more
Bundaberg-based macadamia grower Andrew Lewis said while the announcement was a step in the right direction, they need more.
“I think it’s good news but what we’d really like to see is a guarantee prior to the election for the Bundaberg region — Paradise Dam will be returned to full supply level,” he said.
“The 130,000 megalitres that are missing from that dam at the moment that will be a real guarantee that there will be jobs in the future.
One Bundaberg farmer is welcoming the announcement but wants to see more commitments around Paradise Dam.(ABC News: David Shipton)
Mr Lewis also wants to see more detail.
“Irrigation costs are a big consideration for us the cost of the actual water is probably two thirds of the cost and power would be the other third,” he said.
“You think about it every time you turn the pump on.
“It’d be interesting to see how long these price reductions continue on for — it’d be nice to think they go well into the future.
“In a COVID year we’ve all grown to understand that having access to fresh fruit and vegetables and everything else that comes from agriculture as well as jobs has been critical to powering the state of Queensland.”
A new market mechanism designed to reduce the impacts of pollution on the Great Barrier Reef has been kick-started with banking giant HSBC and the Queensland government announced as the first buyers of so-called “‘reef credits”.
These new “‘reef credits’ are the creation of environmental traders GreenCollar, working in collaboration with Queensland landholders, to establish a new certification scheme that works in much the same way as carbon offset mechanisms. They are designed to rewards farmers and graziers for reducing the level of pollutants in wastewater leaving farmlands.
The first ‘reef credits’ have been issued to projects located in Queensland’s Tully River Catchment, with sugarcane farmers recognised for improvements in the quality of water that ultimately flows into areas of the Great Barrier Reef, by preventing nitrogen, sediment or pesticides making their way into the waters of the reef.
“Farmers and graziers are important stewards of the catchments of the Great Barrier Reef,” local farmer Jamie Dore said. “Reef Credits recognise the value of the work undertaken by Queensland farmers and provide a valuable additional source of co-investment that isn’t impacted by commodity prices and doesn’t compromise existing agricultural practices.”
“It is exciting to see both leaders in the private and public sectors investing in the work we’re doing, and supporting the future of this iconic asset.”
HSBC and the Queensland government have now joined the scheme as the first purchasers of the reef credits.
GreenCollar, one of Australia’s largest facilitators of carbon farming projects, and one of the largest participants under the Emissions Reduction Fund, has sought to adapt the approach taken in carbon offset markets to reduce the flow of agricultural pollutants into the Great Barrier Reef.
According to a ‘reef credit standard’ developed by GreenCollar, each ‘reef credit’ issued under the scheme represents a “verified amount of pollutant that has been prevented from entering the Great Barrier Reef lagoon”, with each ‘reef credit’ representing a kilo of avoided pollution.
The health of the Great Barrier Reef has been under immense stress due to the combined impacts of pollution and warming ocean temperatures. Scientists have observed a significant decline in the health of the reef, with a surge of mass bleaching events and a decline in coral coverage.
In an effort to protect the environmental and tourism value of the Great Barrier Reef, GreenCollar created the accreditation scheme for pollution reduction project and oversees the issuance of ‘reef credits’ to projects in line with the amount of pollution they are able to avoid. GreenCollar predicts that six million reef credits could be created by 2030, that could be purchased as environmental offsets in a similar way to carbon offsets.
“The Great Barrier Reef contributes $6.4 billion to the national economy and supports more than 64,000 jobs up and down the Queensland Coast. Poor water quality is the second-biggest threat to the reef, and helping to protect this iconic asset will continue to support these jobs and businesses,” GreenCollar CEO James Schultz said.
The Queensland government welcomed the opportunity to become one of the first purchasers under the Reef Credits scheme, with environment minister Leeanne Ecoch saying she hoped it would help support further investment in improving environmental outcomes for the Great Barrier Reef.
“Exploring ways to accelerate and incentivise actions to improve water quality flowing onto the Great Barrier Reef was a priority activity for our Major Integrated Projects,” Enoch said.
“The establishment of the Reef Credits Scheme, this first purchase, and a new partnership between GreenCollar and HSBC signals the start of an exciting new way to value natural capital and actions taken to deliver good environmental outcomes.”
HSBC said that the purchase of ‘reef credits’ formed part of the bank’s climate ambition statement, that includes targets to increase investment in zero carbon projects, and nature-based solutions over the next five years.
“Partnerships like this between governments, the private sector and firms like GreenCollar are vital to achieving net zero carbon, and appropriately valuing and investing in natural capital,” CEO of HSBC Australia Kaber Mclean said. “Our participation in this global first reinforces our credentials as a sustainable finance pioneer in the Australian market, as well as our commitment to safeguarding natural assets like the Great Barrier Reef.”
On 2 October 2020, the Australian Government announced an additional $50 million of funding for the expansion of the On-farm Emergency Water Infrastructure Rebate Scheme in 2020-21.The roll-out of the expanded Scheme is currently being negotiated with all states and territories, including co-funding arrangements. Read the Minister’s announcement – Joint media release: $50 million boost to successful drought water infrastructure rebate.
Rebates for on-farm water infrastructure expenses. Helping primary producers and horticulture farmers in drought-affected areas.
$50 million over 3 years. Starting in 2018-19 financial year.
Access rebates
State and territory governments administer and deliver the rebates. Rebates for primary producers and horticulture farmers are now available in all states and territories.
Funding for on-farm projects in the Murray–Darling Basin is available in New South Wales, Victoria, Queensland, South Australia and the Australian Capital Territory.
REDUCED supplies of molasses for stockfeed in line with smaller cane crushes has sparked talk that beef producers should start thinking seriously about on-farm storage.
While La Nina conditions are far from the severe drought that drove demand for the high-energy feed to the point where it had to be imported during the past two seasons, market conditions are pointing to the likelihood higher molasses prices and shorter supply will be the ‘new normal’.
Added to lower molasses volumes out of Australian sugar mills is growing demand with more grainfed beef production and increased competition from overseas buyers, from both the feedstock and fermentation (ethanol) industries.
It is also used in some Australian distilleries for fuel production, although much of the capacity this year was diverted to making hand sanitiser.
Where molasses had traded for $150 a tonne in previous years, cattle producers are now expecting little to be on offer under $200 and more likely towards the $250 mark.
Some Queensland producers paid as much as $800/t for imported molasses last year, backed into a corner of continually supplementing through drought, with no agistment on offer, no grass and a depressed market to sell on.
Several thousand tonnes was imported from Vietnam and Thailand over the past two seasons in a very unusual move – long-time producers can remember it being imported only once before.
Around 40 Queensland producers signed up for the imported product and some made its way into NSW.
Feeding molasses
Molasses-based mixtures are widely used in areas within a reasonable distance of sugar mills, where transport costs keep it competitive with grain costs. It’s an energy-only feed so has to be mixed with urea for protein.
Northern Australia beef consultant Geoff Niethe said there was always a place for feeding molasses to get out of trouble or to hit certain targets but it would not replace good pasture management.
Molasses-based supplements had a role in keeping weaners moving forward, spike feeding heifers and breeders and – in some circumstances – finishing steers, he said.
Attention has to be paid to stocking rates and pasture spelling as molasses mixtures use can result in more pasture being consumed and thus reduced ground cover.
“If you are feeding molasses for energy, you need to look at the comparative price per unit of megajoules of metabolisable energy on a dry matter basis,” Mr Niethe said.
On a dry matter basis, molasses has approximately 10.7 MJ per kilogram, compared to wheat at 13.
It has high potassium levels and low sodium and phosphorus.
When its energy is balanced with key nutrients, it becomes a good supplement in many situations, Mr Niethe said.
It can still be fed in grassfed programs provided certain additives are not included.
Research indicates it can be stored for up to five years or longer but stronger tanks are required.
Contractor Daniel Mifsud, Mifsud Heavy Haulage at Clermont, said he had been encouraging clients to invest in storage for many years.
“It’s like any commodity – if you need to have it, you have to create your own insurance,” he said.
He was involved in importing molasses during the past two years and said while drought was obviously the big driver of increasing demand, the growth in feedlotting was also contributing.
Shortage across Asia Pacific
The Australian Sugar Milling Council said it had been working closely with producer bodies such as Agforce to encourage pastoralists to establish storage to manage their exposure.
The shortage of molasses extended across the Asia Pacific, ASMC’s Jim Crane said.
The forecast cane crush for Australia this year was just under 31m tonnes, down 1m on last year and well below the 36m crushed in 2016.
Thailand, however, has dropped from 130m tonnes to 70m. Meanwhile, India’s big crops are being diverted to ethanol production.
Molasses tonnage sits at around 3pc of cane tonnage. With mills under pressure from low sugar prices, they will need to maximise all income streams so will be looking for the highest bidders for byproducts.
In previous years, Australian mills have exported around 40pc of their molasses.
The NSW Sugar Milling Co-operative this year opted to put out tenders for its molasses production and entered into long-term contracts with local customers who factored in the rising market to the tune of around $30/t.
North Queensland farmers are being asked what water they need to grow their businesses and jobs as part of the business case for raising the Burdekin Falls Dam.
Building Queensland and Sunwater kicked off a 30-minute online survey today.
Natural Resources Minister Dr Anthony Lynham said the survey was critical to determining how much water was required to meet future demand – essential information for the wall-raising.
“Queensland has an economic plan for post COVID recovery, and it is built on our traditional strengths like agriculture,” he said.
“The plan prioritises growing our regions and supporting the agriculture sector to drive economic prosperity.
“Water supply security can translate to more farm businesses, higher intensity farming and increased production – which in turn fosters more jobs.
Member for Townsville Scott Stewart encouraged NQ farmers to complete the survey.
“I encourage current and potential water users to contribute, particularly anyone who is looking at potentially expanding or changing operations,” he said.
“Your input will help establish how much water is needed, and that’s critical for decisions about the dam wall, and our region’s economic future.
“The Government has invested $1.2 billion in water infrastructure since 2017, including $30 million into Big Rocks Weir in the North and an expert panel to examine a potential Bradfield-style scheme.
“The Burdekin Falls Dam raising is the next big cab off the rank for water infrastructure in the North, and it’s critical that NQ provides full and accurate data fora the business case.”
The confidential survey asks participants to identify their location, current and future potential crops, how much water they are using now and how much they think they might need in the future.
The survey also tests how demand might change under different pricing models.
North Queensland farmers are being surveyed on what water they need as part of the business case for raising the Burdekin Falls Dam.
Natural Resources Minister Anthony Lynham said the survey launched by Building Queensland and SunWater today was critical to determining how much water was required to meet future demand – essential information for the wall-raising.
“Queensland has an economic plan for post COVID recovery, and it is built on our traditional strengths like agriculture,” Dr Lynham said.
“The plan prioritises growing our regions and supporting the agriculture sector to drive economic prosperity.
“Water supply security can translate to more farm businesses, higher intensity farming and increased production – which in turn fosters more jobs.”
The confidential survey asks participants to identify their location, current and future potential crops, how much water they are using now and how much they think they might need in the future.
The survey also tests how demand might change under different pricing models.
