Water Buybacks: A Threat to Rural Communities and Australian Food Production

Strategic Insights -

The Victorian Farmers Federation is calling for an end to water buybacks, citing the devastating impact on rural communities and the future of Australian food production. These buybacks, particularly during drought, prey on vulnerable farmers, leaving them in a weaker position to deal with future dry periods. The consequences of past buyback schemes have been profound, with many farmers now regretting their decisions. A recent dairy industry report warns that future water buybacks could cut milk production by 270 million litres and reduce dairy processor revenues by $500 million.

Key Takeaways:

  • Water buybacks during drought periods are a serious threat to rural communities and Australian food production, according to the Victorian Farmers Federation.
  • Past buyback schemes during the Millennium drought have left many farmers in a weaker position to deal with future dry periods, with some now regretting their decisions.
  • Water buybacks reduce agricultural output, drive up the cost of water for remaining farmers, and do little to achieve environmental gains.
  • A recent dairy industry report reveals that future water buybacks could cut milk production by 270 million litres, reduce dairy processor revenues by $500 million, and increase water costs for farmers who remain.
  • The Victorian Farmers Federation argues that the Australian government should focus on meaningful environmental outcomes rather than arbitrary water recovery targets.
  • Water buybacks are seen as a disaster that must be stopped to prevent further damage to farmers' livelihoods.

Statistics:

  • 270 million litres: potential reduction in milk production due to future water buybacks (Source: Dairy industry report)
  • $500 million: potential reduction in dairy processor revenues due to future water buybacks (Source: Dairy industry report)
  • Unknown: long-term consequences of past buyback schemes during the Millennium drought (Source: Victorian Farmers Federation)

Sources:

  • Andrew Leahy, VFF water council chair: Op-ed article on water buybacks
  • Victorian Farmers Federation: Statement on the impact of water buybacks on rural communities and Australian food production
  • Dairy industry report: Data on the potential impact of water buybacks on milk production and dairy processor revenues