Breaking News
Higher Water Prices Threaten Farms and Drive Up Cost of Living

Higher Water Prices Threaten Farms and Drive Up Cost of Living
By Ian Rogers
Proposals to increase water costs for agricultural use by as much as 245% over the next five years could devastate Australian farmers, pushing many out of business and driving up food prices for consumers.
NSW Irrigators’ Council CEO Claire Miller warned that the proposed hikes would exacerbate the challenges already faced by local farmers, who are struggling to compete with an influx of cheap imported food.
“Food imports have surged by $7 billion in just two years, reaching nearly $40 billion in 2023-24,” Ms. Miller said.
“Our farmers adhere to stringent environmental and health standards, which come with significant costs. These include rising expenses in interest rates, fuel, insurance, machinery, wages, energy, and water allocations, compounded by State and Commonwealth environmental water recovery policies.”
Calls for Government Intervention
Ms. Miller urged the NSW Government to intervene, noting the Premier had already stepped in to limit urban water bill increases to 50% over five years for Sydney and Newcastle households.
“If the NSW Government wants its households to eat local and support our farmers, it must also advocate for rural water users. Without intervention, exorbitant water prices could prove the final straw for many,” she said.
“These proposed increases don’t just affect farmers. All WaterNSW customers with water licences, including councils, food manufacturers, and other industries, could face skyrocketing costs. This could lead to higher consumer prices and widespread economic consequences.”
A Broken Pricing Model
Ms. Miller criticised the current water pricing model as unsustainable, noting that small and medium family farms, which form the backbone of many rural communities, are especially vulnerable.
“Farmers can’t keep absorbing costs indefinitely. If they can’t pass these increases on to consumers, they’ll be forced out of business, with devastating consequences for rural communities,” she said.
“The ripple effects include business closures, job losses, and the collapse of industries critical to regional economies and social wellbeing.”
Ms. Miller also highlighted the inequity of asking rural water customers to shoulder the growing costs of public good reforms, including environmental, recreational, and Aboriginal programs, which benefit the broader community.
“Rural water users should not bear the costs of delivering reforms intended for the public good,” she added.
Advocacy and Next Steps
The NSW Irrigators’ Council has submitted a formal response to the Independent Pricing and Regulatory Tribunal (IPART), calling for a review of the water pricing model to ensure farmers and rural communities are not disproportionately affected.
For more details, the NSWIC submission can be viewed here.
For more local news, click here.
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