Farmers warn that impending price hike will have grave consequences on food supply: 'Will drive family farms out of business'

Farmers in Australia are feeling more unsupported now than ever by the Australian government with decisions on hikes in water prices fast approaching, Region Riverina reported.

These changes may make Australian-grown food unaffordable for residents, causing them to turn to cheaper imported foods, which may put farmers out of business. 

What's happening?

The Murray-Darling Basin has long supported the sustenance and life of surrounding communities. 

The basin's water allows farmers to grow food and take care of livestock, supporting 8,400 irrigated agriculture businesses, or 40% of all Australian farms, according to the Murray-Darling Basin Authority. Each year, the basin produces about $30 billion worth of food and other agricultural products, which includes 40% of the country's produce and 30% of the country's dairy. The basin's water is crucial to the Australian agricultural industry. 

WaterNSW and the Water Administration Ministerial Corporation, two government agencies, lease Australian farmers the right to extract water from the basin. Both agencies plan to hike their water prices because of "climate change risk, rising management and compliance costs and upgrades to technology," per Region Riverina. 

The Independent Pricing and Regulatory Tribunal of New South Wales is deliberating on these price increase proposals and is expected to reach a decision by July.

The steepest — along the Peel River in northwest NSW — would mean a 341% increase in the cost of water by 2030, according to Region Riverina. 

"These exorbitant price hikes currently before IPART will drive family farms out of business and Aussie food off the shelves," the NSW Irrigators' Council said, per Region Riverina.

Why are changes in water prices concerning?

Since 1910, Australia has warmed 2.6 degrees Fahrenheit, according to AdaptNSW. Rising temperatures are accompanied by drastic changes in rainfall patterns — with Southern Australia, where the Murray-Darling Basin is located, experiencing more heat and drought-like conditions, and Northern Australia experiencing more frequent and intense rainfalls, especially in recent decades. 

With unpredictable and scarce rainfall, the price of water has become more expensive. 

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Australian farmers have been asked to choose between paying excessively high prices to continue farming or going out of business. And even if they can pay for the price hikes, Australian-grown food on supermarket shelves would reflect that cost burden, causing consumers, who are already feeling the cost-of-living squeeze, to reach for cheaper imported foods. 

What can I do to help with changes in water prices?

The best way to support local farmers is to shop for locally grown foods. Of course, it is not always possible to purchase more expensive options. However, with strategic planning and a little flexibility at the store, such as buying dry goods in bulk, you may be able to stretch your grocery budget. 

Additionally, let your local representatives know that supporting farmers is important to you. Farmers have been fighting the fight, but power often lies in numbers.

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