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Overview Murray-Darling Basin Commission Strategic Investigations and Education Program Irrigated Regions Sub-program Overview

Overview - Murray-Darling Basin Authority

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Page 1: Overview - Murray-Darling Basin Authority

Overview

Murray-Darling Basin CommissionStrategic Investigations and Education Program

Irrigated Regions Sub-program

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Page 2: Overview - Murray-Darling Basin Authority
Page 3: Overview - Murray-Darling Basin Authority

1. Irrigation in the Murray-Darling Basin

MDBC: Strategic Investigations and Education Program – Irrigated Regions Sub-program �

1. �rrigation in the Murray-Darling Basin

Overview

Murray-Darling Basin CommissionStrategic �nvestigations and Education Program

�rrigated Regions Sub-program

Page 4: Overview - Murray-Darling Basin Authority

Overview��

Information prepared by Craig Clifton and Nicholas Fleming, Sinclair Knight Merz

Edited by Geoff McLeod

Published by Murray-Darling Basin CommissionPostal Address GPO Box 409, Canberra ACT 2601Office location Level 4, 51 Allara St, Canberra CityAustralian Capital TerritoryTelephone (02) 6279 0100 international + 61 2 6279 0100Facsimile (02) 6248 8053 international + 61 2 6248 8053E-Mail [email protected] http://www.mdbc.gov.au

For further information contact the Murray-Darling Basin Commission office on (02) 6279 0100

This report may be cited as: Murray-Darling Basin Commission Strategic Investigations and Education Program. Irrigated Regions Sub-program Overview

MDBC Publication No: 21/07

ISBN: 1 921257 31 8

© Copyright Murray-Darling Basin Commission 2007

This work is copyright. Graphical and textual information in the work (with the exception of photographs and the MDBC logo) may be stored, retrieved and reproduced in whole or in part, provided the information is not sold or used for commercial benefit and its source (Murray-Darling Basin Commission Strategic Investigations and Education Program. Irrigated Regions Sub-program Overview) is acknowledged. Such reproduction includes fair dealing for the purpose of private study, research, criticism or review as permitted under the Copyright Act 1968. Reproduction for other purposes is prohibited without prior permission of the Murray-Darling Basin Commission or the individual photographers and artists with whom copyright applies.

To the extent permitted by law, the copyright holders (including its employees and consultants) exclude all liability to any person for any consequences, including but not limited to all losses, damages, costs, expenses and any other compensation, arising directly or indirectly from using this report (in part or in whole) and any information or material contained in it.

The contents of this publication do not purport to represent the position of the Murray-Darling Basin Commission. They are presented to inform discussion for improvement of the Basin’s natural resources

Cover Image: Loddon River Victoria.

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Page 5: Overview - Murray-Darling Basin Authority

MDBC: Strategic Investigations and Education Program – Irrigated Regions Sub-program ���

Murray-Darling Basin Strategic Investigations and Education Program Irrigated Regions Sub-programThe Murray-Darling Basin Commission Strategic Investigations and Education (SI&E) Program has invested in strategic research over the last decade. Irrigated Regions was one of four sub-programs under the SI&E Program. The others were Dryland Regions, Riverine Environments and Basin Communities.

Since 1992, over 130 research projects have been completed as part of the Irrigated Regions Sub-program. A series of themes were defined within the Sub-program and the projects are grouped according to the following:

• Water-efficient farming practices• Channel seepage management• Improving adoption of recommended practice• Delivering water use efficiency• Environmental stewardship• Planning for sustainable irrigation land use• Improved water efficiency• Irrigation water use decision support framework• Groundwater management• Biodiversity planning• Water quality in irrigated regions, and• Information management.

Foreword

Foreword

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Overview�V

Abbreviations v

Symbols v

Summary vi

1 Irrigation in the Murray-Darling Basin 1

1.1 Murray-Darling Basin water resources ______________________________________ 1

1.2 Irrigated agriculture in the Murray-Darling Basin ______________________________ 2

1.3 Why are the Basin’s irrigation regions important? ______________________________ 4

2 Overview of the Irrigated Regions Sub-program 6

2.1 The origins and purpose of the Irrigated Regions Sub-program ____________________ 6

2.2 Management arrangements for irrigation research _____________________________ 7

3 Key findings of the Irrigated Regions Sub-program 8

3.1 Practices to improve water management ____________________________________ 8

3.2 Processes to enhance adoption of improved water management ___________________ 9

3.3 Processes to enhance resource management planning _________________________ 10

4 Implications of IRP research for irrigation management in the Basin 13

4.1 Allocation of water for consumptive uses ___________________________________ 13

4.2 Market-based systems for water management _______________________________ 14

4.3 Regional delivery model for natural resource planning and management ___________ 14

4.4 Building capacity for sustainable water and natural resource management __________ 15

5 Future directions in irrigation management 17

6 References 18

Contents

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MDBC: Strategic Investigations and Education Program – Irrigated Regions Sub-program V

Abbreviations

ANCID Australian National Committee for Irrigation and Drainage

Basin Murray-Darling Basin

Cap Cap on Diversions

Commission Murray-Darling Basin Commission

IIWG Irrigation Issues Working Group

MDBC Murray-Darling Basin Commission

NLWRA National Land and Water Resources Audit

SI&E Strategic Investigations and Education

Symbols

GL gigalitre

ha hectare

Abbreviations and Symbols

Abbreviations and Symbols

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OverviewV�

Irrigated agriculture covers about 1.7 per cent (1.8 million ha) of the total area of the Murray-Darling Basin and accounts for around 36 per cent of the total profit generated from agriculture. In 2000–01, 11 400 GL of surface water and 1034 GL of groundwater was diverted for irrigated agriculture. New South Wales accounts for around 59 per cent of the total water requirements for irrigated agriculture, Victoria accounts for 31 per cent, Queensland around 7 per cent and South Australia 3 per cent. Geographically, approximately 65 per cent of the total water requirements of irrigated agriculture occurs in just four Catchment Management regions—North Central and Goulburn–Broken in Victoria, and Murray and Murrumbidgee in New South Wales.

The growing evidence of environmental degradation shows there is a need to continue to improve the Basin’s farming systems and management of the irrigation water supply. Key issues include:

• Balancing the competing demands for water between irrigation and environmental uses• Minimising on- and off-site impacts of irrigation on: water quality, the productive capacity of

land, and river, wetland and terrestrial ecosystems.Irrigation communities have responded to the challenges of scarcity of water and environmental decline with unprecedented collective action. They have been actively engaged with government in planning and implementing programs that will deliver better environmental, community and commercial outcomes.

The Irrigation Regions Sub-program (IRP) was initiated in 1992 as part of the Murray-Darling Basin Commission’s Strategic Investigations and Education Program to provide information, knowledge and management tools that would help to alleviate the causes and symptoms of unsustainable irrigation practice. During its operation, the Sub-program supported some 130 projects and directed over $32 million of investment towards research into more sustainable irrigation.

Early IRP projects were largely concerned with improving the efficiency of water use on farms, to provide more product or greater value per megalitre of water provided to the farm. The realisation that best management practices for irrigation were often not adopted by irrigators led to research into ways of improving adoption, and ultimately into how a culture of environmental stewardship could be fostered. Research was also carried out to reduce water losses and environmental impacts from water supply systems.

In the latter stages of the IRP, research investment, under the banner of the Watermark Project, increasingly focused on sustainability issues beyond the scale of individual irrigation farms. Much of the investment was directed towards developing risk-based planning frameworks that could be applied across the Basin. The studies addressed issues such as land use planning, water quality, biodiversity conservation, groundwater management and water resource planning. The IRP also supported work to develop more efficient methods for monitoring and reporting against catchment targets and strategies, so that natural resource managers would have up-to-date information to underpin policy development and management planning.

The Commission and partner governments have responded to the growing evidence of environmental decline in the Murray River system by formulating The Living Murray Initiative to recover and provide water for the environment. Major IRP studies examined how policy could be used to support this initiative by helping to improve water efficiency at both farm and supply-system levels.

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1. Irrigation in the Murray-Darling Basin

MDBC: Strategic Investigations and Education Program – Irrigated Regions Sub-program 1

1. �rrigation in the Murray-Darling Basin

1.1 Murray-Darling Basin water resourcesThe Murray-Darling Basin has an area of over one million square kilometres (Figure 1). The Basin’s catchment areas generate average run-off volumes of almost 24 000 GL/year, of which over 50 per cent is diverted (NLWRA 2001). Its groundwater resources are used for irrigation, stock and domestic water supplies, with an estimated usage for irrigation in 2000–01 of 1034 GL, excluding extraction from the Great Artesian Basin and the unincorporated groundwater areas (MDBC 2006).

Figure 1: Location of major irrigation regions in the Murray-Darling Basin

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1.2 Irrigated agriculture in the Murray-Darling BasinIrrigated agriculture was established in the Basin in response to its dry and unpredictable climate (Powell 1993) and government efforts to develop and populate the country’s interior. Work on irrigation schemes in what are now parts of the Loddon-Murray and Shepparton irrigation regions commenced in the 1880s (McCoy 1988). The South Australian and Victorian governments supported the Chaffey brothers in founding the Renmark and Mildura irrigation settlements in 1887. Development of the Murrumbidgee Irrigation Area in New South Wales began between 1906 and 1913 with water from Burrinjuck Reservoir.

These irrigation schemes remained at a modest scale until the period between the two World Wars. The construction of Hume Dam and the establishment of soldier settlement following World War I saw further irrigation developments initiated in South Australia, and the Murray Valley of northern Victoria and southern New South Wales.

The enlargement of Eildon Reservoir, construction of storages associated with the Snowy Mountains Scheme and the construction of Dartmouth Dam after World War II supported larger-scale irrigation developments in the Goulburn, Murray and Murrumbidgee valleys in Victoria, New South Wales and South Australia.

Irrigation development in the northern reaches of the Basin was modest until the 1960s. Relatively small developments (compared with those in the Murray and Murrumbidgee valleys) were supported by dams and weirs on the upper tributaries of the Darling River system, including the Balonne and Condamine Rivers. Expansion of irrigation in these areas has primarily been based on the use of groundwater, the capture of overland flows and direct extraction from the rivers by individual property owners. There are several major irrigation regions in each of the Basin states (Figure 1), including:

• New South Wales: the Murray, Murrumbidgee, and Coleambally irrigation regions and in the Lachlan, Macquarie, Namoi, Border Rivers and Gwydir valleys

• Queensland: the floodplains of the Condamine, Balonne and McIntyre rivers• South Australia: the Riverland and Lower Murray irrigation regions, and• Victoria: the Goulburn, Murray, Loddon-Campaspe and Sunraysia irrigation regions.

Smaller scale irrigation developments are widespread throughout the river valleys and higher rainfall areas of the Basin. About 1.7 per cent, or 1.8 million hectares, of the Basin’s area is used for irrigation (Bryan & Marvanek 2004). New South Wales supports the largest area of irrigated land in the Basin (1 072 000 ha in 2000–01), followed by Victoria (531 000 ha), Queensland (156 000 ha) and South Australia (59 000 ha). Around 45 per cent of the Basin’s irrigated land was under pasture in 2000–01, generally for dairy production. Cereal growing accounted for 14 per cent of the total area of irrigated land, and cotton cropping for about 22 per cent. Most irrigated cropping takes place in New South Wales. Cotton production is shared between New South Wales and Queensland. Rice production accounted for slightly less than 10 per cent of irrigated land in 2000–01, with nearly all of it located in New South Wales. Grapes, other fruit and vegetables were grown over 160 000 ha, or 9 per cent, of the total irrigated area. Irrigated horticultural production takes place at similar levels in Victoria, South Australia and New South Wales (Figure 2).

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1. Irrigation in the Murray-Darling Basin

MDBC: Strategic Investigations and Education Program – Irrigated Regions Sub-program �

The total estimated irrigation water use was 12 050 GL/year for the Murray-Darling Basin in 2000–01. New South Wales accounted for the largest requirement of approximately 7053 GL/year. Victoria’s irrigation requirement was estimated to be 3738 GL/year, Queensland’s requirement was 865 GL/year and South Australia’s was 395 GL/year (Bryan & Marvanek 2004). In 2000–01 irrigated pasture accounted for about 44 per cent of irrigation water requirements. Cotton accounted for about 24 per cent, rice slightly less than 16 per cent, horticulture about 9 per cent and cereals 7 per cent (Figure 3).

Figure2: Area of irrigated land (ha) within the Murray-Darling Basin, broken down by commoditySource: Bryan & Marvanek 2004

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1.3 Why are the Basin’s irrigation regions important?The gross revenue from agriculture in the Basin was $13.6 billion in 2000–01, of which $4.6 billion or 34 per cent was estimated to be derived from irrigation. The Basin’s irrigated areas accounted for about 80 per cent of the total irrigated area in Australia and provided 20–25 per cent of the total national gross value of agricultural production. Irrigated agriculture is practised on about 15 000 different farming properties throughout the Basin (Bryan & Marvanek 2004).

Gross revenue from agriculture is concentrated in the irrigated areas along the Goulburn, Murray and Murrumbidgee rivers in the south-east, and the cotton-growing areas in the northeast of the Murray-Darling Basin (Bryan & Marvanek 2004). Cotton production is the biggest single contributor to the overall gross revenue of irrigated agricultural production, contributing around $1.07 billion in 2000–01. Grape growing produced the next greatest value of irrigated production, about $0.95 billion.

Irrigated agriculture and horticulture in New South Wales contributed over $1.9 billion (41 per cent of the Basin’s total) to the Australian economy. The agricultural economy in that state is the most diversified of any of the Basin states, producing pasture, cotton, cereals and other crops including rice and horticulture. Irrigation in Victoria produces approximately $1.64 billion of gross revenue, South Australia $0.66 billion and Queensland $0.4 billion annually.

The value of production from irrigated land is high relative to most dryland areas, and production is often more labour intensive. The concentration of activity in irrigation districts and regions and the nature of many crops encourage a greater level of local processing compared with dryland agriculture. When combined, these factors mean that irrigation is a major driver of economic activity and community life in a number of the Basin’s regions and major provincial centres.

Figure 3: Estimated annual irrigation water requirement in the Murray-Darling Basin, based on the land use in 2000–01Source: Bryan & Marvanek 2004

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1. Irrigation in the Murray-Darling Basin

MDBC: Strategic Investigations and Education Program – Irrigated Regions Sub-program �

Despite the ongoing trend of increased production and gross revenue from irrigated agriculture during the 1980s and 1990s, there was growing evidence of environmental degradation at a landscape level and to river health. Soil salinity and waterlogging became major issues in the southern irrigation regions of the Murray-Darling Basin following a period of higher than average rainfall in the 1970s and 1980s. The continued increase in water diversions for irrigation from many of the river systems across the Basin resulted in less frequent flooding of riparian and wetland areas and lower levels of stream flow, a decline in water quality and a decline in stream health.

These issues highlighted that the Basin’s irrigation water supply and farming systems required further improvement and that there was a need to review the balance of water use for economic and social outcomes derived from irrigation and the environmental effects. Key issues that required further investigation were identified as strategic planning at a catchment and sub-catchment level, and development and adoption of farm- and district-level practices that would lead to greater water use efficiency and minimise the on- and off-site negative effects of irrigation.

Figure 4: Irrigation equipment near St George, QLD(Image by Arthur Mostead, sourced from the Murray-Darling Basin Commission)

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Overview�

�. Overview of the �rrigated Regions Sub-program

2.1 The origins and purpose of the Irrigated Regions Sub-programThe Murray-Darling Basin Initiative is a cooperative venture of the Australian government and Basin state and territory governments. It was established to ‘promote and coordinate effective planning and management for the equitable, efficient and sustainable use of water, land and environmental resources of the Murray-Darling Basin’.

Research has played a pivotal role in the Commission’s strategic initiatives. The Strategic Investigations and Education Program developed sound scientific and technical knowledge to help the Commission’s policy and strategic development. It comprised four theme-based sub-programs: Irrigated Regions, Riverine Environments, Dryland Regions and Basin Communities. Collectively, the sub-programs were intended to provide information, knowledge, and management tools and practices that would help the Basin’s land, water and natural resource managers achieve the objectives of a broader framework, the Natural Resources Management Strategy, which was released in 1987. The Strategy’s primary objectives were to inform, encourage and empower communities to work in partnership with governments across the spectrum of the Basin’s natural resource management issues to:

• Control land degradation and, where possible, rehabilitate land resources• Maintain and improve surface and groundwater quality and provide appropriate supply,

balanced between all beneficial uses• Manage and conserve terrestrial, riparian, in-stream and wetland ecosystems, and• Conserve and manage significant cultural heritage sites.

The Irrigated Regions Sub-program (IRP) began in 1992 and supported over130 projects until 2005. Total investment by the Commission and other funding partners exceeded $32 million.

This first phase of the IRP was technically focused. Most projects were commissioned through an open-call process, in which teams were invited to submit research proposals that were broadly aligned with the priorities of the Natural Resources Management Strategy.

The IRP gained new direction following the agreement to the Integrated Catchment Management statement by the Murray-Darling Basin Ministerial Council and Commission in 2001. The IRP’s new emphasis explored irrigation issues within the context of integrated catchment management. A suite of new projects were branded under the banner of the Watermark Project to collectively develop an integrated package of measures to provide catchment managers with:

• Reliable information and decision support tools to establish irrigation water priorities, targets and management plans, and

• Policy options to underpin improvements in land use planning, groundwater management, water use efficiency and biodiversity.

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MDBC: Strategic Investigations and Education Program – Irrigated Regions Sub-program �

The major clients for technical and policy outcomes from the IRP were those who make decisions on the management or use of the Basin’s natural resources, and groups who advise the decision makers, including:

• The Ministerial Council and the Commission• The Community Advisory Committee of the Murray-Darling Basin Ministerial Council• Practitioners of integrated catchment management in the Basin• Relevant research groups• Local government in the Basin, and• Community and catchment groups.

2.2 Management arrangements for irrigation researchThe Irrigation Issues Working Group (IIWG) supported an MDBC management team to implement the IRP. The IIWG comprised representatives from the partner governments, the Community Advisory Committee and Commission office. Their participation helped to ensure that there was two-way communication between the Commission and its stakeholders, and that adoption and knowledge transfer needs were addressed. The IIWG was also responsible for developing the Sub-program’s priorities for funding and providing advice on policy and on-ground implementation.

Steering groups were established for some of the larger IRP projects. The groups were usually chaired by a member of the IIWG. The other steering committee members were typically people who could provide useful practical and/or technical perspectives on the project. Steering groups also made recommendations on various aspects of the project to the IIWG, including the acceptance of milestone and final project reports.

2. Overview of the Irrigated Regions Sub-program

Figure 5: Loddon River, Vic(Image by Arthur Mostead, sourced from the Murray-Darling Basin Commission)

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Overview�

The key findings of each of the IRP’s main research themes are summarised below. These findings represent the more strategic conclusions that can be drawn from the Sub-program’s research. IRP Projects have been grouped into three broad areas: techniques and tools to improve water management; frameworks and processes to help the irrigation community improve water management; and frameworks and processes to support planning within irrigation regions.

3.1 Practices to improve water management

Water-efficient farming practicesThe high level of allocation of the Basin’s water resources for irrigation, the growing competition for water with environmental and urban uses, and declining terms of trade in agriculture mean that irrigation farmers must continue to use water more efficiently. The relatively low crop productivity and associated water use efficiency achieved on a large number of farms has highlighted significant opportunities to increase the sustainability of irrigation. A range of best management practices, tools and guidelines have been developed that will lead to improvements in the efficiency of irrigation and revenue for irrigators. The involvement of industry and regional groups has led to the adoption of a number of these practices.

Channel seepage managementSeepage from water supply channels is an important issue for the Australian water industry. It accounts for approximately 4 per cent of the volume of water supplied for irrigation; estimated at 300 GL/year in Victoria, New South Wales and Queensland alone. Best practice guidelines were developed in collaboration with the Australian National Committee for Irrigation and Drainage (ANCID) for identifying channel seepage across supply systems, assessing seepage losses at individual locations and using remediation techniques. These guidelines have been incorporated into a web-based Seepage Management Tool and are available on the ANCID website.

Delivering water use efficiencyAn integrated water use efficiency package was developed for horticultural areas to assess and report water use efficiency at various scales. An Irrigation Inventory Module enables an assessment of water use efficiency using a geographic information system-based generic assessment of the water balance at the farm, district and regional scales. A Farm Level Water Management Module enables an assessment of water use efficiency for individually irrigated patches derived from farm-level information that can be aggregated for the whole farm and at the district and regional scale. This package has been used as the basis for water use monitoring in the horticultural regions of South Australia and offers potential for use within other regions and for adaptation to less intensive irrigation systems.

�. Key Findings of the �rrigated Regions Sub-program

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MDBC: Strategic Investigations and Education Program – Irrigated Regions Sub-program �

3.2 Processes to enhance adoption of improved water management

Improving adoption of recommended practicesThe IRP and other industry research initiatives have developed a range of best management practices to improve the financial and environmental sustainability of irrigation and irrigated agriculture. However, rates of adoption generally remain low. Four alternative approaches to achieving increased levels of adoption of best practice for irrigated agriculture were investigated. Of these, an integrated approach supported by financial and technical support and backed up by industry or regional audit and certification schemes was considered to warrant further development. Under this approach the goals and targets of regional natural resource management plans would be translated into practical on-farm actions as best practice.

These findings led to the development of the Environmental Stewardship System and provided support to the development of best management practices programs by individual industries such as the Cotton Best Management Practices program.

3. Key Findings of the Irrigated Regions Sub-program

Figure 6: Wine grapes near Griffith, NSW(Image by Arthur Mostead, sourced from the Murray-Darling Basin Commission)

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Overview10

Environmental stewardshipThere is increasing pressure on both irrigated and dryland agriculture to adopt best management practices and provide assurance of environmental performance. The Environmental Stewardship System was developed, based on the lessons learnt from trialling four contrasting irrigation contexts. The stewardship system involves two essential elements:

• Performance standards for best irrigation practices to achieve catchment outcomes, and• Market requirements and a practical process for continuous performance improvement.

The stewardship system has multiple entry points and different levels of verifying performance in stages, progressing toward a rigorously audited high-level standard. The current market drivers for higher levels of stewardship are weak, but it is considered inevitable that markets will increasingly demand assurance of environmental performance. The stewardship system provides a structured approach to guide resource use toward rigorously audited improved environmental performance as market drivers strengthen.

3.3 Processes to enhance resource management planning

Planning for sustainable irrigation land useAustralia’s irrigation industry faces several major challenges in relation to its sustainability in environmental and socioeconomic terms. Irrigation planning processes vary between jurisdictions, reflecting different institutional arrangements for water and natural resource management and the history of land use and irrigation development. A planning framework and associated guidelines were developed to help achieve a more consistent approach to irrigation development across the Basin. The framework uses a risk-based approach for assessing irrigation development proposals and seeks to provide a transparent assessment and clearly defined development process, and a mechanism to ensure that irrigators can be held accountable for their management actions. The framework is suitable for adaptation and use at catchment and state level.

Improving water efficiencyIrrigated land accounts for just 1.4 per cent of the Basin’s area, but uses 40 per cent of the average annual run-off and 90 per cent of the regulated surface water resource. Water use efficiency, however, has only been increasing at around 1 per cent per annum. Investment in improved water management, supported by appropriate policy settings, may lead to water savings of between 900 and 3000 GL/year after 10 years. Farm business investment cycles mean that government programs will not always lead to effective uptake by irrigators. An integrated policy framework was developed that combines the current water policy framework based on legislation, licensing and planning arrangements with an investment policy framework. The integrated framework provides a structured approach to combining investment considerations such as rate of return, risk sharing and development of investment partnerships with water policy objectives.

Water resource planningAs the demand for water resources increases within the Murray-Darling Basin, it is important that irrigation communities make the best use of the water available to them. A decision support framework was prepared for use by community groups. It provides a suite of tools to guide communities through the process of developing options to optimise their use of water and to understand the complex linkages between economic, social and environmental factors.

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MDBC: Strategic Investigations and Education Program – Irrigated Regions Sub-program 11

Key elements of the framework are relevant to simpler situations, and it has also been designed to be applied to more complex situations that require detailed investigations and consultation processes. The framework is suitable to either develop a new water management plan or revise an existing plan.

Groundwater managementApproximately 80 per cent of the groundwater extracted from the Murray-Darling Basin is used for irrigated agriculture. In recent years there has been significant growth in the volume of groundwater extracted, which threatens the viability of groundwater as a resource for irrigation and also threatens the volume of surface water flows where there is hydraulic connection between the groundwater and surface water systems. Reduced surface water flows that result from groundwater extraction will reduce river health and the volume of water available for use by surface water irrigators. A decision framework for groundwater management was developed that recognises the connection of surface water and groundwater, and guidelines were prepared for estimating sustainable groundwater yield. The basis for a management response to minimise the effects of groundwater extraction on stream flow was also developed from the outcomes of specific investigations.

BiodiversityIrrigation takes place in ‘working’, multiple-use landscapes. Despite the irrigation regions’ landscapes being highly modified, these areas retain significant biodiversity—along roadsides and within soils, patches of remnant vegetation, farm water bodies, natural depressions and farm gardens. A biodiversity conservation planning framework was used to prepare a biodiversity strategy and plan for the Australian rice industry. Building on this experience, a generic framework for the preparation of industry-wide biodiversity strategies and regional-scale action plans was developed.

Water qualityIrrigation can adversely affect water quality by mobilising and then transporting salts, sediment and/or agricultural chemicals. The level of understanding of the effects of the Basin’s irrigation regions on surface water quality is low and largely confined to salinity. Despite irrigators’ concern about incoming water quality there are few economic drivers and little information to guide them in changing their management practices in ways that improve downstream water quality. However, individual irrigators are open to technological innovation and are served by industry organisations that are making increasingly sophisticated efforts to improve water quality management. A risk assessment framework based on economic principles, non-market-based valuation techniques and biophysical modelling was developed to assess and manage water quality. The framework provides the basis to trial and trade-off various water quality investment options, taking environmental, economic and social outcomes into account.

Information managementBasin-scale and regional scale reporting of irrigation performance is inhibited by the multiplicity of database systems and project-specific data sets that have been established without a common reporting focus. An assessment of current information sources showed that it was not possible to answer with adequate accuracy basic questions regarding water use, levels of productivity, associated employment, effects of water use, and regional outputs and outcomes from irrigation within the Murray-Darling Basin. In turn, this inhibits the capacity of the water industry and government to present conclusive evidence of progress towards sustainable irrigation in the Basin and to develop future water policies.

3. Key Findings of the Irrigated Regions Sub-program

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Overview1�

An information management system was developed that provides a scalable, integrated reporting structure for irrigators, through to catchment and Basin managers, to monitor and evaluate the performance of irrigation from social, economic and environmental perspectives. The system builds on existing investments in technological infrastructure and data networks, fills significant gaps in current reporting on irrigation performance and identifies the key data sets to underpin future information requirements.

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Figure 7: Rice near Murrami, NSW(Image by Arthur Mostead, sourced from the Murray-Darling Basin Commission)

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This section discusses the implications of IRP research for irrigation management in the Basin. It does so in the context of several of the key features of the operating environment for water and natural resource management in Australia.

4.1 Allocation of water for consumptive usesAllocation and consumptive use of water from the River Murray and the Basin’s tributary river systems has exceeded environmentally sustainable levels. Growing evidence of environmental decline led to the introduction of the Cap on surface water diversions and subsequently the Commission’s The Living Murray initiative, and contributed to the rationale for the National Water Initiative. While The Living Murray initiative aims to address the decline in the health of the River Murray system, the National Water Initiative has a major focus to return surface and groundwater systems to environmentally sustainable levels of extraction.

A number of studies were conducted as part of the IRP to promote the sustainable use of water, as detailed below.

GroundwaterResearch in this theme highlighted the connection between surface water and groundwater resources and the need for conjunctive resource management. A risk-based framework for groundwater management was developed and a process for sustainable yield estimation defined. Application of these processes will lead to more sustainable levels of groundwater extraction and avoid inappropriate substitution of surface water and groundwater.

Water use efficiencyEfforts to restore surface water to sustainable extraction levels are based in part on water savings through improved efficiency of irrigation supply systems and through increased farm-level efficiency. The assessment of a range of scenarios as part of the study to investigate improved water management showed that between 900 and 3000 GL/year of water could be saved after 10 years through a combination of improvements in efficiency of water use at the farm and district level. A process for quantifying seepage losses and evaluating remediation techniques for irrigation supply systems was developed and is being implemented by water supply authorities.

Water planningThe National Water Initiative recognises the important role of planning in making sound water management and allocation decisions. The Decision Support Framework for Water Resource Planning, and the Land Use, Suitability and Capability Planning Framework have direct application to future irrigation planning and development.

The Decision Support Framework for Water Resource Planning provides a systematic and uniform approach for application across the Basin. Decisions on water use would be repeatable and adaptable, and their progress could be monitored through the establishment of performance criteria. Application of the framework would ensure that the needs and aspirations of all the affected parties are considered.

The Land Use Suitability and Capability Planning Framework uses a risk-based approach to irrigation planning and approvals. Its use would provide a more consistent approach to irrigation development and redevelopment, facilitate the approval of development applications and help to avoid development in inappropriate locations with adverse environmental or social impacts.

4. Implications of IRP Research for Irrigation M

anagement in the Basin

�. �mplications of �RP Research for �rrigation Management in the Basin

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4.2 Market-based systems for water managementThe National Water Initiative emphasises the role of markets as a driving force in achieving its water management objectives. One of its key objectives (Clause 23) is ‘Full implementation of this Agreement will result in a nationally-compatible, market, regulatory and planning-based system of managing surface water and groundwater resources for rural and urban use that optimises economic, social and environmental outcomes’.

Market-based systems incorporate:• Water allocation and land use planning• Water accounting• Water trading• Definition of property rights• Performance standards and accountability mechanisms• Inclusion of externalities in planning and economic analysis, and• Policy settings for improved rural and urban water use efficiency.

Policy tools required to establish many elements of this system were developed by the Watermark projects, particularly those entitled ‘Policy framework for improving water use efficiency’ and ‘Environmental stewardship’. The former project identified six areas for change in policy to achieve water use efficiency at the required scale. Current investment conditions are not considered sufficiently favourable for major investment, particularly in on-farm technology. The Environmental Stewardship Program developed a stewardship system that contained two critical elements: standards for irrigation management and a process for continuous improvement.

4.3 Regional delivery model for natural resource planning and managementThe National Action Plan for Salinity and Water Quality and the second round of the Natural Heritage Trust involved a regional model for the delivery of natural resource planning and management. Responsibility for natural resource planning and management was devolved to regional natural resource management organisations (that is, catchment management authorities in Victoria and New South Wales, natural resource management boards in Queensland and South Australia). These organisations are responsible for developing accredited regional natural resource management plans and preparing and implementing (with their delivery partners) regional investment strategies. Key requirements of these organisations and their plans include:

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Figure 8: Wheat Crop near Darlington Point, NSW(Image by Arthur Mostead, sourced from the Murray-Darling Basin Commission)

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• Development of a regional vision, and goals or achievable targets for its natural resource assets, including ecosystems, land and water

• Engagement with their communities in planning and investment strategy implementation• Development of achievable resource condition targets and a suite of management actions that

will ensure progress towards them, and• Development of frameworks and infrastructure to monitor and report on progress towards

resource condition targets and to support adaptive management of investment programs.

The Environmental Stewardship Program identified key weaknesses of the existing natural resource management delivery, including poor definition of performance standards at different geographic scales and levels of management, lack of alignment of reporting across scales, and lack of integration between quality assurance schemes and environmental auditing arrangements. The lack or inadequacy of market incentives to implement practices intended to progress natural resource outcomes, and the inadequacy of linkages between management actions and resource condition targets were also identified as important barriers to achieving resource condition targets.

The Environmental Stewardship Program developed a Basin-wide Environmental Stewardship System with:• On-farm performance standards that linked with resource condition targets from sub-catchment

to Basin scale, expressed in regional natural resource management plans and Basin-wide strategies• A continuous improvement process that focused primarily on performance improvements in

preference to intensity of audit, except where market drivers warranted increased rigour in auditing, and

• Monitoring and reporting mechanisms to measure progress relative to catchment objectives.

This system recognised the importance of clarifying needs and requirements across the farm, catchment and basin scales and of developing an assurance scheme underpinned by farm-level performance standards that relate to the achievement of catchment outcomes. The Environmental Stewardship System provides the structure for individuals to participate in a process of certification and independent verification at an appropriate level of rigour for their circumstances. Irrigators operating at the higher levels of the scheme may ultimately attract premium prices for their products, as markets become more discerning about environmental performance. These premiums are, however, not generally available in current markets.

Implementation of the Land Use Suitability and Capability Planning Framework will ensure that regional goals and targets for natural resource assets will provide reference points for the preparation and assessment of irrigation development proposals and the development of accountability mechanisms. The generic biodiversity strategy and plan provides a framework for primary industry organisations to develop and implement action plans that will lead to activities that protect or enhance on-farm biodiversity.

4.4 Building capacity for sustainable water and natural resource managementThe goal of achieving more sustainable irrigation production systems in the Murray-Darling Basin poses many challenges. The capacity of individuals and communities to achieve sustainable water and natural resource management is influenced by information and reporting systems, financial drivers, planning requirements and institutional issues. The IRP has made some progress in addressing these issues and identifying gaps.

4. Implications of IRP Research for Irrigation M

anagement in the Basin

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InformationIRP projects identified several significant gaps in information monitoring and reporting, such as the effects of irrigated regions on water quality, and the understanding of natural processes, including interactions between groundwater and surface water. It was found that existing information available at a catchment level was not sufficient to answer basic questions regarding irrigation water use, irrigation production and regional outputs and outcomes from irrigation.

The lack of monitoring tools and data at the farm scale limits adaptive management on farms, and there are few market incentives for improved water quality outcomes. These deficiencies need to be overcome if regional and Basin water quality targets are to be met.

An information management and reporting system was developed to facilitate the capture and reporting of irrigation information across scales. The system was developed to fill the future information needs of four regions within the Basin. It provides a scalable, integrated reporting structure for catchment and Basin managers to understand the performance of irrigation from social, economic and environmental perspectives.

The water use efficiency tool developed for horticultural regions provides the capacity for establishing and reporting on water use efficiency at a farm and district level in a standardised and consistent manner.

FinanceWhile there are increasingly strong financial drivers for improved farm and system-scale water use efficiency, there are few such drivers for other measures of improved resource condition. While the proposed Basin Environmental Stewardship System may help to harness market-generated opportunities, inadequate financial returns remain a major barrier to actions that would improve environmental performance on farms.

PlanningWith implementation of the regional delivery model for natural resource management, there is an emerging, regional-scale planning framework that should support sustainable irrigation production. The key challenge relates to planning that links regional goals, targets, management actions, monitoring and reporting to actions that can be undertaken at the farm scale. The Environmental Stewardship System and the Land Use Suitability and Capability Planning Framework would facilitate these links.

InstitutionsThe National Water Initiative provides a framework for addressing institutional deficiencies to achieve sustainable water and natural resource management. Institutional deficiencies identified by IRP projects include inadequacies in regional labour and capital markets, high business transaction costs associated with investment in improved water use efficiency, financial instruments for investment, water trade, a Basin-level organisational arrangement to implement the Environmental Stewardship System, and technical and staffing capacity to implement the Land Use Suitability and Capability Planning Framework.

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The IRP projects provide guidance to future investment to achieve more sustainable irrigation production systems at three levels.

Strategic: knowing the right reasons for acting to improve irrigation managementRegional natural resource management planning should be strengthened so that the vision and goals for natural resource assets, including water and irrigated land, are technically robust, clearly articulated and well-supported by the community. Regional goals and targets should be consistent with national and Basin targets and priorities.

Tactical: doing the right things to improve irrigation managementWater resources should be managed in a precautionary way, recognising the interconnection between groundwater and surface water and the dependency of ecosystems on both systems. This includes recovering water for the environment in over-allocated and over-used systems, continuing to establish market-based systems for water management and using regional natural resource management plans as the key reference point for action plans for water, biodiversity and irrigation developments.

Operational: doing the things that will improve irrigation management the right wayAn Environmental Stewardship System for the Basin should be implemented with willing regions and industries, where there are emerging market drivers for environmental performance. It should identify and mitigate key inefficiencies in water supply systems, adopt current recommended practices for farm-level water-efficient agriculture, and apply risk management-based approaches to evaluating proposed changes to resource management and more consistent land use suitability and capability planning approaches for irrigation development applications.

�. Future directions in irrigation management

5. Future directions in irrigation managem

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Figure 9: Infrastructure for the Bookpuranong Salt interception Scheme, SA(Image by Arthur Mostead, sourced from the Murray-Darling Basin Commission)

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Beynon, N., Kingma, O., White, D., Moore, K., Jackson, D., Morris, M., Johnson, F., Rogers, L., Hope, M., Fairweather, H., Durack, M. & Fuelling, T. 2002. The potential for improving water use efficiency: a scoping study of opportunities for change and possible policy approaches for the Murray-Darling Basin. Project I2115, first paper. Capital Agricultural Consultants Pty Ltd. Report to the Murray-Darling Basin Commission.

Bryan, B. & Marvanek, S. 2004. Quantifying and valuing land use change for Integrated Catchment Management evaluation in the Murray-Darling Basin 1996–97 – 2000–01. Stage 2 Report to the Murray-Darling Basin Commission. CSIRO Land and Water Client Report.

McCoy, C.G. 1988. The supply of water for irrigation in Victoria from 1881 to 1981. Rural Water Commission of Victoria, Melbourne.

Murray-Darling Basin Commission, 2005. Murray-Darling Basin eResources 2005. <www.mdbc.gov.au/eResource_book>.

Murray-Darling Basin Commission, 2006. Irrigation. <www.mdbc.gov.au/nrm/water_management/water_issues/irrigation>.

National Land and Water Resources Audit (NLWRA), 2001. Australian water resources assessment 2000. Surface water and groundwater—availability and quality. NLWRA, Canberra.

Powell, J.M. 1993. The emergence of bioregionalism in the Murray-Darling Basin. Murray-Darling Basin Commission, Canberra.

�. References

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