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IRRIGATION PRICING ARRANGEMENTS
QFF has welcomed the Queensland Government’s decision to endorse more equitable and consistent irrigation pricing arrangements for farmers through state-owned water supply schemes.
As a result, all Sunwater and Seqwater supply schemes will soon be capped at the Queensland Competition Authority’s (QCA) assessed cost reflective level, often referred to as the lower bound price.
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Through the policy change, where water prices are higher than lower bound prudent and efficient costs, prices will now be reduced to reflect the efficient or actual cost, whichever is lower.
Current water prices that are below cost reflective prices, will continue to transition towards cost reflective prices as per the irrigation price path.
“QFF and its industry members have been advocating for many years on water pricing structures and the inequities this pricing can present for Queensland farmers,” said QFF CEO Jo Sheppard.
“Queensland’s agricultural sector has some of the highest input costs in the world and this decision will not only benefit farmers, but there will also be ongoing and broader economic benefits borne from the increased use of water due to affordability.”
Water is a critical input for Queensland’s agricultural sector and essential for the future success of agricultural growth in Queensland. However, this success and growth is reliant on farmers’ ability to access affordable, reliable and secure irrigation water.
