A large number of farmers are offering to sell their water entitlements in the Southern Murray Darling-Basin to the Federal Government. The significant number of tenderers means the Government is likely to return its target of 70 gigalitres to environmental flows in the current tender round.

Australian Water Brokers Association president Andrew Martin believes the Government set aside $610m in its recent budget to make water purchases as well as create water-saving infrastructure. He expects prices to range from $300m for general entitlements, based on current market prices plus 20% and up to $700m for high security water. Sellers are from Victoria and NSW with many small scale family and  retiring or retired farmers struggling wine grape growers and annual croppers with underutilised holdings. 

Voluntary buybacks are part of Labor’s Restoring Our Rivers reforms, aiming to restore 450 gigalitres to the Murray Darling-Basin by 2027.