Federal Member for Parkes has said the “first round voluntary water buybacks” which started on Wednesday July 17 will eventually drive up food prices.

“We've been dreading this day ever since Labor's amendments to the Murray-Darling Basin Plan” Mark Coulton said in a statement.

“While communities throughout the Basin will be bracing themselves for the fallout, this will impact all Australians, with the cost of water to no doubt rise, pushing up the price of food at the checkout”.

Buybacks involve the federal government buying “water entitlements” – the right to take a certain volume of water from the river each year – from people who want to sell them.

The buybacks are voluntary with Commonwealth aiming to give back 26.25 gigalitres of water each year to the rivers for environmental flows.

Mark Coulton. Image: Supplied.

The NSW Farmers Federation says the buybacks will hurt Western Plains communities.

“Basin communities have sent a clear message to the Federal Government that they oppose buybacks and this rewrite of the Basin Plan, because they are living through the negative impacts,” says NSW Farmers Water Taskforce Chair Richard Bootle.

The first ‘targeted’ tender started last Wednesday is seeking up to 70 GL. The second seeking sales of large portfolios of more than 20 GL each will get going in the first quarter of 2025.

The third, open to everyone, will get underway in the second quarter of 2025.

Image: NSW Government.

NSW Irrigators’ Council CEO Claire Miller said that buybacks were already inflating the water market.

“The NSW Water Register shows the Government is paying more than 30 per cent above the market for NSW Murray entitlements under its Bridging the Gap tender from last year,” Ms Miller said.

“In the Namoi valley, it is paying almost double the market rate for supplementary water licences”.

“ABARES says past and planned water recovery wipes $602 million – $914 million every year from what the farmgate value of irrigated agriculture would otherwise be”.

However, environment groups support the buybacks.

Craig Wilkins. Image: Supplied.

An alliance of leading environment organisations across Victoria, NSW, QLD and South Australia has strongly welcomed the resumption of voluntary water purchases “to benefit rivers, wetlands and wildlife”.

The Murray-Darling Conservation Alliance, which represents close to half a million supporters across all Basin states, praised the announcement of Commonwealth tenders.

Murray Darling Conservation Alliance National Director Craig Wilkins said “These are not new targets for river health. They are the same Basin Plan targets that have been in place since 2012.

"After over a decade’s delay, Minister Plibersek is getting on with the job. Labor promised this at the last election, they negotiated with the states and Senate last year, and now they are delivering.

 “Scientists have long held that the full delivery of the Plan’s water targets, including the 450 gigalitres, is the bare minimum required to give the Murray Darling a decent chance of survival."