THE state government has delivered on last year's $50 million election promise to slash the price of water for Queensland irrigators.
However, the Queensland Farmers' Federation, while welcoming the changes, believes more needs to be done to achieve fair and equitable water pricing across all commodities.
More than 6400 farmers who buy water from Queensland's 35 state-owned irrigation schemes will have their charges cut by 15 per cent from Thursday July 1.
The price cuts means the government will provide $81.6 million to support irrigators over the next three years.
Minister for Water Glenn Butcher said that for many irrigators, their discount would be automatic.
"The Palaszczuk government knows that Queensland's agriculture industry is critical to delivering Queensland's plan for economic recovery from the global COVID-19 pandemic," Mr Butcher said.
"From July 1, when we begin the new financial year, every irrigator who buys water from Queensland's state-owned irrigation schemes, will automatically see 15pc cut from their water bill."
Discounts for horticultural growers
Horticultural growers will be able to apply to receive the balance of their 50pc discount through a 35pc rebate, which will be administered and assessed by the Queensland Rural and Industry Development Authority.
The rebate will apply to water used to grow horticultural crops such as fruit, vegetables, nuts, and turf.
Water used to grow broadacre crops such as grains, cotton, sugar cane and legumes will not be eligible for the rebate.
Mr Butcher said their objective was to ensure that the rebate scheme is simple and straightforward for horticulture growers to claim their additional discount.
"I've written to the Minister for Agriculture Mark Furner seeking QRIDA's help to design and deliver a rebate scheme that's simple to understand, easy to use, and won't mean any extra measurement or complicated bookkeeping for irrigators," he said.
"QRIDA has been helping farmers take care of their bottom lines for more than 25 years, and that makes them the perfect people to deliver a rebate scheme that puts money back in the pockets of our horticultural growers."
QFF: Rebate process 'will not come easily'
While the reduced water bills have been welcomed by the Queensland Farmers' Federation and its industry members, the sector is pushing to achieve fair and equitable water pricing across all commodities.
QFF CEO Georgina Davis commended the Queensland Government for listening to QFF's concerns and allowing more irrigators to access cheaper water to continue growing world class produce.
"The full 50pc discount will not come easily for horticulture irrigators who will have to apply for a rebate through the Queensland Rural and Industry Development Authority," Dr Davis said.
"Further details are required regarding the facilitation of this process, and QFF is consulting with the government and QRIDA to ensure irrigators applying for the rebate do not face any additional administrative burden."
"Further, the state government has delayed expected irrigation water price increases following the end of their 2019/20 price freeze on June 30, which would have left many irrigators no better off even if they qualified for the 50pc discount."
"The government has recognised how expensive irrigation water is in the state, and instead of facing a two-year jump in water prices on July 1, irrigators will see some price relief and only pay the 2020/21 prices."
However, the QFF maintains it is wrong to favour one agricultural commodity, or regional community over another by selectively providing favourable pricing and may result in unintended consequences.
"Despite extensive advocacy and detailed pricing data provided by QFF, this water pricing policy continues to exclude other irrigated primary produce including sugar cane and cotton from accessing the 50pc price reduction," Dr Davis said.
"It is clear there is a long way to go for Queensland to achieve equitable and affordable water pricing, to ensure our food, fibre and foliage sector is sustainable into the future."
Sugar industry welcomes irrigation cost cuts
The Australian Sugar Milling Council says the Queensland government's delivery on its election commitment of a 15pc reduction in irrigation water charges will deliver a boost to sugar industry confidence.
ASMC Chief Executive Officer David Pietsch said the decision to reduce irrigation water charges would provide an estimated $100 million boost to the sugar industry and the Queensland economy.
"This reduction reverses a decades-long trend of increased regulated water charges. This will make water more affordable for the two-thirds of the state's cane growers who rely on irrigation," Mr Pietsch said.
"More affordable water provides growers with greater incentive to take full advantage of their water allocations.
"The Queensland sugar industry generates more than $4 billion in economic activity in Queensland each year and supports more than 23,000 jobs, so this is an important development for our industry and our State."
The ASMC estimate the 15pc cut in water prices would generate around $132 million in additional economic activity over four years, or around $100 million over the three years from July 1, 2021 to June 30, 2024.