| Key
Regional Priority 7
Support
for the Namoi Valley
Situation
Analysis
Irrigation
crops have been threatened in the last few years with cuts
in water allocations due to wide-spread water reform. One
of the challenges for the NENW over the next few decades is
to diversify these traditional agricultural pursuits to achieve
long-term sustainability.
The Water
Sharing Plan (WSP) for the Namoi Valley was gazetted in December
2002 and is to commence on 1 July 2004. The WSP has been developed
in response to two main factors: the need to manage use of
groundwater within the recharge limit to ensure sustainability
of supply and uses based on that supply, and the modification
of the priorities assigned to the competing uses. Water to
maintain the health of water source and dependent ecosystems
has first priority, followed by basic landholder rights (stock
and domestic requirements and native title rights).
The WSP
will impact most significantly on four LGAs - the former Quirindi
Shire, Gunnedah Shire, Narrabri Shire and Walgett Shire, where
ground water is used for irrigation and includes a flow on
to Tamworth Regional LGA.
Socio
economic analysis indicates changes will affect industry in
the Namoi Valley via a reduction in the capacity to produce
of all irrigated crops and some specialty crops, an expansion
of dry land crops, mainly wheat and sorghum, and a small expansion
in feedlot cattle and small decline in grazing cattle enterprises.
A major consideration is the flow-on effect through employment
and household spending locally and across the region. The
loss of employment is likely to result in the people affected
leaving the area.
The major
impacts of the WSP will be in the first three years of implementation
and will be concentrated in the zones along the Mooki River
in Gunnedah Shire, Boggabri and Walgett. Narrabri may be affected
by flow-ons to business and farm servicing activities in Wee
Waa. Investment in value adding opportunities and agricultural
diversification will assist in their structural adjustment.
Barriers
to Change
The decision
to apply cuts across all Aquifer Access Licences (Alas) means
that all farm businesses are affected. There are 73 businesses/operators,
where the reduction is more than about 40% are at considerable
risk and may require farm structural adjustment. Other operators
at risk are those that have a low 10 year history of use and
high recent use that are not yet identified.
The size
of the cuts is an important determinant of adjustment costs
and economic impacts, relatively small cuts can be accommodated
through adjustments to the way a business is operated and
impacts on production and adjustment costs are small. Larger
cuts will lead to changes in business structure and operating
systems and therefore increase economic impacts and adjustment
costs.
The size
of those impacts depends on the flexibility available to operators
to adjust the way they run their operations with less water.
The effects are compounded by the way the reductions are introduced
through the number of businesses affected and the adjustment
costs that they incur.
There
was low interest amongst those affected in investment and
management changes that improved the efficiency of water use
(this is already at a high level on most of the major irrigation
properties). There was relatively low interest in the development
of new enterprises and in entering into collaborative arrangements
with other irrigators. The responses reflect the feelings
of uncertainty and discontent with the development and implementation
of the WSP.
NENWACC's
Strategies
The NENWACC
will support projects that maintain the competitiveness of
existing businesses and their dependent local service industries
by facilitating the adjustment of business and their plans
for future development.
The NENWACC
will support projects that nurture agricultural diversification,
value adding opportunities and high water conversion efficiency.
The NENWACC
will support projects that build capacity of the Namoi region
by supporting leading businesses to access and apply knowledge
based services in their businesses.
The NENWACC
in partnership with Catchment Management Authorities, the
NSW Government and other relevant services will assist irrigators
to understand the effects of the introduction of the WSP and
provide a referral network for assistance from Australian
and NSW Government programmes and private investment.
The NENWACC
will prioritise projects that demonstrate viability, and contribute
to value-adding and market development opportunities.
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