30 April 2021

Key messages:

• Last summer’s La Nina reduced irrigation demand
• The MDBA active storage is at 45% (this time last year active storage was at 27%)
  • Other storages are generally at or above average
• The Bureau of Meteorology climate forecast is currently neutral for the next 3 months (anything could happen in terms of rainfall and inflows)
• Major Victorian High Reliability water shares are expected to reach 100% in 2021-22 under average or wetter inflow scenarios
• Currently, around 500 GL is held in privately owned allocation accounts in the Victorian Murray system and about 500GL in the Goulburn system
• Approximately 650 GL likely to be carried over in the NSW Murray system and 565 GL in the Murrumbidgee system
• A Carryover Calculator is available for Victorian water systems to explore your unique on-farm carryover scenarios

A table that summarises carryover rules for major entitlement types in the sMDB is below:

*unless there is water allocated onto this entitlement

• When looking to secure water for the future, consider:
  • Goals for the water secured – such as providing a low-cost input for annual crops versus security for perennial plantations
  • Access to capital
  • Exposure to risk such as the volume that could be allocated to you in a season, the market spot price and the potential for disputes
• Options to secure water include:
  • Permanent entitlement or water shares
  • Entitlement lease
  • Forward allocation contracts (including options)
  • Temporary allocation market
  • Carryover (“parking” or using your own space)
  • Other options that can be negotiated between a buyer and a seller
• Each option has its own benefits and risks
• Generally, using a combination of the above options is the best strategy.

For more information, watch the webinar recording above or view the webinar slides (PDF, 2MB).