Goulburn-Murray Irrigation District Research Articles

How the Resist-Accept-Direct framework is being used by communities for socio-economic climate adaptation: a case study in Australia’s Murray-Darling Basin

Globally, water governance struggles to reconcile increased demands on water resources with climate change–induced reductions in supply, making climate adaptation in water governance a pressing concern. The Resist-Accept-Direct (RAD) framework has emerged as a climate adaptation tool designed to help make adaptation decisions. However, there is limited understanding of social and political factors, which are critical in driving RAD decisions. This paper explores how communities are employing RAD to make climate adaptation decisions, using a case study of the Goulburn-Murray Resilience Strategy (the Strategy); a community-led strategy that uses a version of the RAD framework to build regional resilience in the Goulburn-Murray Irrigation District (GMID) in Australia’s Murray-Darling Basin (MDB). The Strategy focuses on building socio-economic, rather than ecological, resilience, making this research a valuable contribution to RAD literature. To apply the RAD framework to socio-economic adaptation, we adapted the framework to include IPCC language around incremental, transformational, planned, and autonomous adaptation. With the GMID considered a leader of resilience thinking in Australia, the Strategy may help decision-makers address water overallocation and contested governance in the MDB, and provide lessons for water governance globally. Data analysed from 20 semi-structured interviews with people involved with the Strategy revealed two main findings: (1) Communities and governments prioritise different actions under the RAD framework. Governments, particularly at the state level, preference incremental planned adaptation to maintain the status quo (resist), over incremental autonomous adaptation to changing conditions (accept), and transformational planned adaptation at various scales (direct). (2) Community and government actors perceive that factors driving governments’ preference for incremental-resist adaptation include electoral short-termism, linear planning, and conservative government culture.

Examining volatility dynamics, spillovers and government water recovery in Murray-Darling Basin water markets

Although participation in water markets is widespread among irrigators in the Murray-Darling Basin of Australia, there has been a lack of study on the dynamics of water markets, in particular price and volume dynamics, volatility and spillovers. Questions have also been raised regarding the impact on markets from governments buying back permanent water from consumptive use to return to environmental use. VARX-BEKK-GARCH time-series regression was used to model the water market dynamics of monthly permanent and temporary water market trade from 1997 to 2017 in one of the largest water markets in the Murray-Darling Basin, the Goulburn-Murray Irrigation District. Results suggest that the temporary market was more volatile than the permanent market, while persistency in volatility only exists in permanent markets. Unidirectional transmission spillovers exists in both markets from prices to volumes. The main drivers of temporary water prices were water scarcity related, while permanent prices were most significantly influenced by previous permanent water prices and current temporary water market prices. A statistically significant negative impact on temporary volume-traded from government water recovery (e.g. a 1% increase in water recovery resulted in a 0.14% reduction in water volume-traded) was found, but no significant impact from government recovery was found on temporary water prices, nor on permanent market prices and volumes. However, government water recovery increased the volatility of temporary market prices and volumes, signaling potential increased issues of risk and uncertainty for irrigators engaging in temporary water markets.

Automated identification of intensive animal production locations from aerial photography.

Successful control of an emergency animal disease outbreak requires the timely and accurate identification of properties of interest. The identification of commercial piggeries within study areas in the Goulburn-Murray Irrigation District in Victoria, Australia, is used to demonstrate the innovative application of object-based image analysis (OBIA) techniques for the identification of intensive animal production land uses, to improve the accuracy of existing datasets. Characteristics of infrastructure and landscape features were combined to form a commercial piggery identification algorithm. These criteria were applied to recent aerial photography that had been classified using OBIA techniques. The results were then compared with three datasets containing known commercial piggery locations and visually checked by roadside surveys. The OBIA technique identified 21 potential piggery locations across three study areas, 14 of which were identified in existing databases. Of the 7 additional sites, 4 were dairy properties, 1 was a cropping and sheep property and 2 were previously undocumented piggery locations. The OBIA approach has potential of OBIA for identifying the locations of commercial piggeries. Further development and testing will determine how generic this approach is in terms of industry type and operation size. The method described is cost-effective, automated and repeatable, and could be used to regularly update existing databases by analysing newly acquired aerial imagery to identify possible land use changes. This would improve the reliability of currently available data and increase the effectiveness of a biosecurity response during an emergency animal disease outbreak.

Farm Water Program: Using the Water Savings Calculator

AbstractCalculating the water savings expected to be realised from improvements to farm irrigation systems is an integral part of the Farm Water Program being delivered in northern Victoria, Australia. Water savings form the basis of works packages landowners undertake to improve water productivity of their irrigation systems. Through the Farm Water Program, landowners agree to transfer more than half of the water savings for environmental purposes in exchange for funding to do works. The Farm Water Program originated in 2009 following the introduction of an AU$300 million On‐Farm Irrigation Efficiency Program by the Australian government. The Goulburn Broken and North Central Catchment Management authorities, relevant Victoria government agencies and irrigation industry bodies formed a consortium to bid for funding to be used on properties across the Goulburn Murray Irrigation District of Victoria. The organisations have worked in partnership as the Farm Water Program and have successfully delivered 620 projects involving over 80 000 megalitres of water savings. The water savings calculator was developed using research findings conducted in the region and has been widely accepted and confirmed by landowners as they have developed projects. This paper describes the processes of using the water savings calculator to determine project water savings. Copyright © 2018 John Wiley & Sons, Ltd.

Price leadership and information transmission in Australian water allocation markets

This paper explores relationships in price and volumes across two trading zones of the water allocation market in the Goulburn-Murray Irrigation District in Northern Victoria. Previous papers have explored the reasons for price variations across trading zones within this region, our focus is to add to this literature by analysing how information is incorporated into market prices across different zones that can contribute to the presence of price leadership. Market prices reflect the incorporation of new information and evidence from financial markets suggests that this process leads to a pervasive lead–lag relationship across alternative markets offering similar products. As a result, markets with leading prices are thought to incorporate new information first. We examine if this lead–lag relationship exists in the far less liquid water market. Our analysis shows that the most actively traded of the two trading zones (the Greater Goulburn trading zone) plays a key role in price leadership. We postulate that the nature of production in the different zones contributes to this lead–lag relationship in prices because crops tend to be zone specific and each crop has different water requirements both within and between seasons. This drives the most active trading zone to play a greater role in the price discovery process.

Erratum to “The changing profile of water traders in the Goulburn-Murray Irrigation District, Australia” by Wheeler et al. [Agric. Water Manage. 97 (2010) 1333–1343

Conventional Wald tests (Cameron and Trivedi, 2005, pp. 25–226) are conducted on our MNL results to assess some of our ater market hypotheses. For H1, we compared the significant variables associated with ater allocation trading in 1998–99 (as reported in Wheeler et al., 009)with the significant variables associatedwith allocation tradng in 2003–06. In order to be identified as significantly associated ith trading, two influences need to be identified: (a) one variable eeds to be significant in the Logit binary regression and (b) its ssociated coefficients in the buyers vs. non-traders (B vs. N) and he sellers vs. non-traders (S vs. N) regressions of the MNL model eed to have the same impact (which is tested by theWald test). If he coefficients are assessed as having the same impact, then it is a easure of willingness to trade, rather than ameasure of buying or elling behavior. Then, if the identified significant variables in our 003–06 model are vastly different from our previously examined 998–99 model, we may conclude the profile of water allocation raders has changed and the market has become more mature and ost farmers engage in trading.

The changing profile of water traders in the Goulburn-Murray Irrigation District, Australia

Abstract This paper examines the changing profile of water traders (both allocation and entitlement traders) in the Goulburn-Murray Irrigation District in Australia, and examines the efficiency of the water allocation and entitlement markets from 1998–99 to 2003–06. The results suggest that the profile of traders in the early and mature stages of the water allocation market differ greatly. In addition, the profile of allocation traders is significantly dissimilar from that of water entitlement traders at all stages of water market development. The decision to buy or sell water allocations was more likely to be associated with a farmer's socioeconomic characteristics and the type of farm, while the decision to buy or sell water entitlements was more likely to be associated with the extent of existing farm infrastructure and farm productivity. Finally, there was strong evidence to suggest that trading in the water allocation market has become more efficient over time, though there is no evidence to suggest the same for the water entitlement market.

Demonstrating environmental water needs in a climate of change

Efficient and accountable management of water resources in Northern Victoria has become a critical issue for the future of irrigation, communities and the environment, both north and south of the Great Dividing Range. To increase efficiencies and enhance accountability for water resource use, the Victorian Government is investing $1 billion through the Northern Victoria Irrigation Renewal Project (NVIRP) to upgrade ageing irrigation infrastructure across the Goulburn-Murray Irrigation District. The upgrade is expected to generate an additional 225 GL of water that will be distributed equally between irrigators, the environment and Melbourne. Whilst there are significant potential benefits for the environment as a whole from the water savings initiatives, there may also be adverse impacts from altering the hydrology of the diverse array of wetlands and rivers which are directly linked to the irrigation delivery network. The NVIRP Environmental Referrals process has investigated these potential impacts and identified ten wetlands and four rivers of high environmental value that require the development of environmental watering plans. These plans are the primary means by which the NVIRP commitment to ‘no net environmental loss’ will be achieved and assets of high environmental value will be protected. Three Environmental Watering Plans (EWPs) were completed prior to the operation of NVIRP works in the 2009-2010 irrigation season. These are for Johnson Swamp, Lake Elizabeth and Lake Murphy. The paper will describe the development of the Lake Elizabeth EWPs by the North Central Catchment Management Authority (NCCMA), within the context of uncertain climatic conditions, the recent long drought and the need to demonstrate accountability and efficiency in the use of a scarce and finite resource.

Market Power in Water Markets

Water markets with market power are analysed as multi-market Cournot competition in which the river structure constrains access to local markets and limited resources impose capacity constraints. Conditions for uniqueness are identified. Lerner indices are larger under binding resource constraints. The number of cases explodes in the number of local markets. Under quadratic benefit functions and symmetric constant marginal extraction costs, closed-form solutions for selected cases are derived, and numerical implementation through a single optimization program is available. Upstream locations face less competition than downstream. Observed price patterns in the Goulburn-Murray Irrigation District are consistent with the theoretical results.

Who trades water allocations? Evidence of the characteristics of early adopters in the Goulburn–Murray Irrigation District, Australia 1998–1999**

AbstractThis article applies a model of innovation to analyze the characteristics of irrigators within the Goulburn–Murray Irrigation District in Australia and examines the efficiency of the early water market in the late 1990s. Using multinominal and binary logit analyses we identify the factors associated with irrigators who sold or bought water allocations during 1998–1999 and irrigators who at that time had never participated in any kind of water trading. Contrary to expectations we find that early adopters of water trading were older farmers with low farm productivity, but that in line with theory they had higher levels of education, had spent less time farming, had larger irrigated area, farm operating surplus and farm assets, owned farms that were more intensively farmed, and were more progressive in their planning. There was only weak evidence to suggest that water moved from lower value uses to higher value uses, suggesting the water allocation market had limited efficiency in its’ initial years.

Price elasticity of water allocations demand in the Goulburn–Murray Irrigation District*

Bid prices for the demand and supply of water allocations between 2001 and 2007, and average monthly prices paid for water allocations from 1997 to 2007 in the Goulburn–Murray Irrigation District are analysed to estimate price elasticities. Based on bid prices, the price elasticity of demand for water allocations appears highly elastic, with elasticities strongly influenced by the season and drought. The price elasticity of supply for water allocations is also elastic, albeit less elastic than demand. Using actual prices paid, water demand is negatively related to price and is inelastic, and appears to be most influenced by demand the previous month, drought and seasonality factors.

Fundamentals Determining Prices in the Market for Water Entitlements: An Australian Case Study

Prices paid in the market for water entitlements within the Goulburn-Murray Irrigation District in Australia have increased by 15% p.a. over the 10-year period from 1993 to 2003. This is less than half the increase that has taken place in the market for water allocations during the same period. Regression analyses show very few relationships between commodity prices and prices of water entitlements, with only wine grape prices having a significant positive influence on price. Correlation analyses show strong negative correlations between commodity prices and the price of water entitlements, especially with dairy products, which is the main high value industry within the district. The major factors influencing the price of water entitlements are: the price of water in the allocation market, the level of seasonal allocation, vine grape prices and interest rates. There is some evidence to suggest that high value producers have been willing to pay increasing prices as supply has declined in order to protect their long-term investments in permanent plantings and other capital investments such as dairy equipment and cattle. The negative correlation with dairy prices indicates that dairy farmers have had to accepted to pay higher prices despite a relative fall in commodity prices; the increase in the price of water has therefore come out of irrigators' profit margins and not out of increased income.

An Analysis of the Returns from an Investment in Water Entitlements in Australia

Using thirteen years of market data from the Goulburn-Murray Irrigation District in Victoria, Australia, cash-flow analyses are used to assess returns that investors could have achieved through an investment in water entitlements under different cash-flow management scenarios. Cycle factor analyses were conducted to determine the extent to which entitlement prices follow allocation prices. Returns from investments in water entitlements seem to be higher but more risky than investments in the share market. The movement in prices of water entitlements and allocations are reasonably synchronized, while price fluctuations of allocation prices are about twice that of water entitlements

Growth and survival of selected aquatic animals in two saline groundwater evaporation basins: an Australian case study

Evaluation trials were undertaken in two evaporation basins filled with saline groundwater to identify finfish and shellfish that have the potential to survive and grow in these conditions. Test animals were reared in replicate culture units in each of two basins filled with saline groundwater located in the Goulburn–Murray Irrigation District (GMID), south-eastern Australia. Salinity in basin 2 (9.5–24.6 p.p.t., mean 16.8 p.p.t.) was significantly higher than in basin 1 (8.8–15.2 p.p.t., mean 11.6 p.p.t.). Some differences were observed between the ionic concentrations in the groundwater and sea water (at 10 p.p.t.) and may have affected growth and survival of some species. Survival and growth for oysters (Crassostrea gigas and Saccostrea glomerata) in the basins were low. Shrimps (Penaeus monodon and Marsupenaeus japonicus) did not survive beyond 3 weeks. Of the eight species of fish stocked into the basins, Salmo salar, Macquaria novemaculeata and Acanthopagrus butcheri survived and grew in both basins. Oncorhynchus mykiss did not survive in the low-salinity basin, whereas Bidyanus bidyanus did not survive in the high-salinity basin. These results indicate that some species of fish in particular can be cultured in saline groundwaters within the GMID.

Aquaculture–agriculture systems integration: an Australian prospective

The concept of integrating aquaculture with irrigated farming systems was evaluated in three projects in the Goulburn–Murray Irrigation District (GMID) in south‐eastern Australia. (1) Semi‐intensive cage culture trials using silver perch, Bidyanus bidyanus (Mitchell), were undertaken in a range of irrigated farming systems: irrigation supply channels; groundwater supplies; and on‐farm storage dams. Survival and growth of fish under these conditions were comparable to fish reared in conventional aquaculture ponds. However, poor water quality at some sites reduced survival and growth. (2) A study was undertaken to assess the feasibility of the cage culture of silver perch and rainbow trout, Oncorhynchus mykiss (Walbaum), in three irrigation water storage reservoirs. Conditions within each reservoir, particularly water quality, wind and wave action, and cage fouling, varied considerably, and influenced fish growth and survival. (3) Mariculture trials were undertaken in two saline groundwater evaporation basins, which were part of an integrated agriforestry and salt reclamation system. The species tested included two oyster, two prawn and nine fish species. Some species exhibited exceptional survival and growth rates under trial conditions. These projects indicate that the concept of integrating aquaculture with existing irrigated farming systems has the potential to enhance productivity, water use efficiency and overall environmental sustainability in the GMID.