Water is the primary requirement for successful irrigation in Australia. Due to this reason about 70% of water available is used for irrigation. About half of the profits that farmers draw from irrigation depend on water supply from the Murray-Darling Basin. Here is a vivid illustration of the cost to buy water from Murray-Darling Basin.
Murray–Darling Basin Water Allocation Price for 2023–24 ($/ML)
Below are the costs of purchasing water from Murray-Darling Basin for 2023-24:
- Price in 2022–23: $29
- Price in wet months: $53
- Price in average months: $80
- Price in dry months: $129
- Price in extreme dry months: $202
From the above data, you can infer that the weather condition of a region has a notable effect on the cost of water. The Bureau of Meteorology in their report has stated that Australia can witness a probable shift to drier conditions in the year 2023-24. In addition to this, south–eastern Australia can experience below median rainfall due to El Niño which can further increase the cost of water.
However, people are also speculating that the effect of El Niño can be nullified due to the La Niña events. These events result in the refilling of water storage across the basin. This assures that the carry-over volumes of unused water are likely to be very high. Owing to these events, you can expect the Murray-Darling Basin forecast to hit 100% in 2023–24. This can result in an increase in the cost of water for irrigation to a great extent.
What is the Effect of Water Costs on Crop Cultivation?
Due to a slight increase in water prices and high water storage, farmers are likely to get sufficient irrigation water for sale. Also, in 2023-24, Australia is likely to experience dry weather compared to 2022-23. This happens to be perfectly suitable for the cultivation of rice. Nonetheless, the drier weather conditions along with the rise in water price can lead to a decrease in cotton cultivation in key growing regions such as the Murrumbidgee when compared to the previous year.
What is the Forecast for Carryover into 2024–25?
Due to drier conditions in 2023-24 along with a 50% chance of El Niño, it is highly probable that the groundwater is continuously being used for irrigation and other purposes. Also, the chances of them getting replenished due to rains are low as well. However, there are still pretty good chances that water carryover into 2024–25 is comparatively higher than averages of past years across the southern basin.
A few reports from Australia anticipate that the cost to buy water can become $2,500 higher by 2040. So, for efficient use of limited water resources, you can hire expert water management services. They will keep track of your water use and requirements so that you do not have to spend excess during irrigation.