THE future of the key plank in the Tasmanian Government’s $220 million Food Bowl vision rests on the sale of water to investors after too few farmers bought into the scheme.
Tasmanian Irrigation Pty Ltd advertised in an interstate newspaper last week for buyers to tender for more than $6.7 million worth of water in the $88 million Midlands Water Scheme.
A minimum 27,615 megalitres must be sold to farmers and investors for the scheme to be viable and to proceed.
Former premier David Bartlett championed a $400 million investment in 13 key irrigation schemes to fill gaps in production caused by proposed irrigation cuts to the Murray-Darling, which produces more than a third of Australia’s food.
Mr Bartlett’s plan was to irrigate more than 250,000 extra hectares of land and deliver $200 million more in produce at the farm gate and represented an increase in irrigation of more than 40 per cent.
Tasmanian Irrigation and its predecessor the Tasmanian Irrigation Development Board have twice offered water for sale under the scheme.
• TFGA hosts workshops on irrigation potential
Farmers with practical questions about how to maximise their use of but minimise their costs associated with the current irrigation developments in Tasmania will be able to attend free workshops around the state in the next two weeks.
The Tasmanian Farmers and Graziers Association (TFGA) is hosting the three-hour workshops with funding provided by the State Government.
Macquarie Franklin rural consultants Lance Davey and James Curran, who have specialist knowledge of the business cases of the various irrigation schemes, will take farmers through those factors that are most pertinent to those who are considering investing or who have already made the commitment.
They include:
• budgeting and auditing calculations to determine overall water requirements for individual businesses;
• gross margins and the financial cost-benefits of undertaking irrigation development.
The Macquarie Franklin consultants will cover the economic analysis of irrigation and present realistic enterprise gross margins for each region, timeframes of investment and methods of repayment and the planning required to undertake a dam development (permits, process).
That should help to answer the questions of whether there is the prospect of a sound investment to be made, which crop or livestock enterprise may be favoured, and the associated risks and financing options.
The workshops will be held at:
• Bothwell, Town Hall, Monday August 8, 1-4 pm;
• Richmond, Wine Centre, Tuesday August 9, 9.30-12.30;
• Swansea. Council Chambers, Wednesday August 10, 9-12;
• Scottsdale, RSL, Thursday August 11, 10-1;
• Longford, Happy Chef, Monday August 15, 9-12;
• Devonport, East Devonport Rec Centre, Tuesday, August 16, 10-1;
• Smithton, Tall Timbers, Wednesday August 17, 1-4.
To register interest in the workshops, farmers should call Larnie Adams at the TFGA on 6332 1800 or email [email protected].
