30-year flood margin licences for Emerald landholders

AgForce CEO Charles Burke said the new 30-year Fairbairn Dam flood margin licences for a peppercorn fee of $1 a year were the result of negotiations over almost 10 years.

"The new agreement that has been hammered out between AgForce, SunWater and the Emerald landholders is a win-win that delivers more security and lower fees for primary producers, and clear land management outcomes and lower administration costs for SunWater," he said.

"Emerald landholders were concerned with a proposal to increase fees and shorten the licence renewal period to 10 years.

"What was being proposed would have transferred many of the costs and liabilities onto the licensees, and offered limited security for infrastructure investments that farming families had made to sustainably manage the land.

"The agreement locks in 30-year terms, a peppercorn rent of $1 per year, clarifies transferability and continuity of licences in the event of a property sale, and tightens cancellation or area reduction rights."

SunWater Acting Chief Executive Colin Bendall said the agreement is a positive step towards working with stakeholders to achieve collaborative solutions that make good business sense to both parties.

"Through the good work of AgForce, SunWater is able to offer greater certainty to landowners who choose to make good use of the flood margin land for grazing purposes. We believe that local adjoining landholders are often best placed to sustainably manage these parcels of land," he said.

"This will now be used as a template for agreement, with around 300 primary producers across regional Queensland who use land next to the 19 SunWater-owned water storages."

Fairbairn Dam Flood Margin Licensee group spokesperson Trish Gretton thanked the SunWater Board, and in particular, Chair Leith Boully, for ensuring a mutually agreeable solution could finally be reached.

"This has been a long process and we are particularly grateful to AgForce for their very valuable assistance in helping landholders negotiate and reach agreement with SunWater," she said.

"The 30 year terms were extremely important as they give us long term certainty and the confidence to make investments in fencing and other infrastructure necessary for our sustainable grazing operations."

Mrs Gretton said all legal costs were covered by the small group of licensees and the work done by licence holder Richard Hawkins on behalf of the group was greatly appreciated.

"Richard spent countless hours revising each draft as it came through, liaising closely with AgForce and keeping the momentum going. Nearly nine years down the track, we've got a very good agreement and a financial incentive in the $1 term," she said.

"The fee is also recognition of the work we've done looking after the SunWater country and our acceptance of our obligation to keep looking after it."

SunWater Acting Chief Executive Colin Bendall said the agreement was a collaborative process and has resulted in a positive outcome that provides landowners greater certainty and lessens the administrative burden of shorter-term licences.

“Through the good work of AgForce, SunWater is able to offer longer lease terms for landowners who choose to make productive use of the flood margin land adjacent to our dams,” he said.

“Local landholders are often best placed to sustainably manage these parcels of land and this new arrangement recognises and values their long-term commitment to assisting with the management of areas of flood margin at our dams.

“We have gone to significant lengths to change the terms so that landholders can confidently establish infrastructure knowing that their capital investments in fencing and other structures are guaranteed for at least 30 years.”

The new licence will now be used as a template for agreement with more than 300 primary producers across regional Queensland who use land next to the 19 SunWater-owned water storages.