How irrigators increase water security
Water security has become an integral element of agricultural risk management, following drought conditions and increased water market maturity over the past decade. These conditions have increased competition to produce higher-value crops from fewer resources, resulting in a more efficient use of water. Now, more than ever, a diversified water portfolio has become key to the success of Australian irrigators.
Over the past five years, water exchange Waterfind has identified a shift in the way that irrigators manage their water assets through the trade of permanent and temporary water. The company’s customers are looking to mitigate the risks associated with holding water licences in one region and investing in water entitlements in other tradeable regions.
Waterfind’s online exchange is facilitating a greater volume of strategic trading as irrigators seek better water security. They achieve this by obtaining holdings that represent greater flexibility to provide access to water through varying conditions. Water entitlement characteristics that irrigators place the greatest value on include ease and capacity for trade, available market volumes, history of favourable allocations and access to tools such as Carryover. This tactical approach speaks to the growing maturity of the water market and irrigators’ key learnings from past seasons.
An example of this more diversified portfolio would be a NSW irrigator holding entitlements in Victoria and South Australia, but only deploying the water on their property in NSW. This strategy of holding water in various regions for use in one significantly increases market exposure should the irrigator wish to temporarily trade unused water.
Now, as part of its commitment to providing Australian irrigators with ongoing opportunities to manage their water holdings, Waterfind presents a total of 9549 ML of Murrumbidgee High Security water. Released to the public on 8 August, Waterfind is seeking expressions of interest for the sale of this water. Offers on all or smaller parcels can be made on this entitlement, though the sale does not include allocation for the 2016–17 water year.
“Murrumbidgee High Security water has one of the strongest track records for delivery of water allocation across the country, even in dry and extreme dry conditions,” said Waterfind CEO Alister Walsh. “We are currently fielding interest from irrigators, many of whom are already familiar with this strong-performing entitlement type and looking to balance their portfolio with this highly reliable water asset.”
For more information on the Murrumbidgee High Security water campaign or to submit an expression of interest, visit http://waterfind.com.au/offer. The offer closes on 30 August.
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