When applied optimally, irrigation water significantly improves cane yields and, by inference, the volume of sugar extracted from the cane.
A common and unhelpful characterisation of cane irrigation is that it is derived – meaning its application varies according to changes in commodity prices, on-farm costs and rainfall conditions. The reality is that 67% of the state’s cane production is either totally, extensively or moderately dependent on irrigation. Water needs to be affordable so that it is applied consistently season-to-season for optimal growth and yield.
For 67% of canegrowers who irrigate, regulated water charges (bulk and distribution) constitute a significant percentage of overall farming costs. Furthermore, farm profitability often increases when water is applied at levels that achieve optimal growth. This is because the productivity and cane revenue gains often exceed the additional water costs – but not always. The following case studies use real data demonstrate these points.
Case study 1 – a large cane farm in the Burdekin. Currently, water costs make up 15% of overall costs. However, if the majority of the proposed $344.4 million in costs to upgrade the Burdekin Falls dam are passed onto irrigators, this farm would become loss-making.
Case study 2 – a medium cane farm in the Burdekin. Currently, water costs make up 13% of overall costs and this farm is already loss making at 2019 water prices. Further if the majority of the proposed $344.4 million in costs to upgrade the Burdekin Falls dam are passed onto irrigators, the financial losses would increase.
Case study 3 – a medium cane farm in the Mackay region. Currently, water costs make up 15% of overall costs and this farm is already loss making at 2019 water prices. Further if the proposed 2021 water price increase areimplemented, the financial losses would increase.
Case study 4 – a medium cane farm in the Isis region. Currently, water costs make up 13% of overall costs and this farm is already loss making at 2019 water charges. However, if the famer was incentivised to increase the amount of water applied to the cane, the productivity and cane revenue gains in this example would increase more than the water and other operational costs and the farm would become profitable.
Read more see Profiles for each Water Supply Scheme and hear from other sugar community leaders