The impact of drought and water scarcity on irrigator farm exit intentions in the Murray–Darling Basin

Wheeler, Sarah Ann; Zuo, Alec

doi:10.1111/1467-8489.12218

Cited by 18 publications

(5 citation statements)

References 42 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Other studies have suggested that although the outward trading of water may have had a minor impact on declining farm productivity – such an impact was small in comparison to the drought (NWC, 2012). Other cross‐sectional studies examining farmer exit intentions have revealed financial pressure predominantly drives farm exit, exacerbated by drought conditions (Wheeler & Zuo, 2017).…”

Section: Australian Water Marketsmentioning

confidence: 99%

Debunking Murray‐Darling Basin water trade myths

Wheeler

2022

Aus J Agri & Res Econ

Self Cite

View full text Add to dashboard Cite

Australia, and particularly the Murray–Darling Basin (MDB), has the most mature and adopted water markets globally. Water trading is an important policy tool to deal with water scarcity issues, demonstrating allocative, dynamic and productive efficiency benefits. At the same time, water markets have been controversial in Australia. Markets have been blamed for a range of issues, including claims of unsustainability, inequity, farm bankruptcy, farmer distress and farm exit. This study reviews the MDB water trade literature and finds little evidence to support such myths. Arguably, the biggest misconception is that critics do not separate water markets from the meta‐governance institutional structures that define them. Perceived water market failures are often due to governance issues – not water trade per se. This is not to say that market failure does not exist, it does, and indeed, there are also serious distributional issues that need addressing (e.g., water property entitlements for indigenous stakeholders). As such, water market design and governance need to adapt and evolve as problems arise and the market matures. However, in an era of increasing water scarcity, enabling water trade remains one of the most important instruments available to assist in water sharing, reallocation and farm adaptation to climate change.

show abstract

Section: Australian Water Marketsmentioning

confidence: 99%

Debunking Murray‐Darling Basin water trade myths

Wheeler

2022

Aus J Agri & Res Econ

Self Cite

View full text Add to dashboard Cite

show abstract

“…During the Millenium drought, Edwards et al (2009) report that farms substantially reduced their output and increased financial hardship, while Nicholson et al (2011) claim that around 70% of agricultural landowners received financial support. In the extreme, drought and increased temperatures can cause farmers to exit agriculture altogether (Wheeler & Zuo, 2017).…”

Section: A Review Of the Evidence Of Drought Impactsmentioning

confidence: 99%

The economics of drought: A review of impacts and costs

Fleming

Whitten

Bonnett

2023

Aus J Agri & Res Econ

View full text Add to dashboard Cite

Although a growing body of literature studies drought impacts, papers providing a comprehensive review of drought's social and economic impacts are scarce. This paper fills this gap by exploring the consequences of drought on societies based on research findings in Australia—a large country used to experiencing severe droughts. To do this, we propose a framework to categorise drought impacts in three dimensions: individuals/households (including health), productive sectors and system (including economic and ecosystem) impacts. The framework then guides a systematic literature review and discussion of studies looking at diverse drought impacts and their related costs. By analysing and discussing the findings from this literature, we emphasise different policy considerations, empirical challenges and research needs to support robust analysis and estimates of the true cost of droughts. We conclude by proposing an expanded framework to identify drought impacts and a discussion of the implications of the review for policy development.

show abstract

“…This coincided with the Millennium Drought, and in 2008 the federal government introduced Small Block Irrigators Exit Grants for owners of <40 ha with at least 10 ML of water available for sale to the government. On exit blocks, all crops and surface irrigation infrastructure were removed, with no irrigation possible on that land for five years [42]. This affected around 7% of the irrigated area under the RIT [43], producing stranded assets or a 'Swiss cheese' effect on land use, with dead trees, vines and bare ground alongside cultivated blocks, possibly precipitating negative environmental impacts on the latter [44].…”

Section: A Future For Small Irrigators?mentioning

confidence: 99%

“…The legacy of other responses to the Millennium Drought is still evident in the form of moves towards organic and unconventional production, i.e., crops previously not widely grown in the area, especially amongst wine grape growers, as 'alternative' crops were regarded by some as offering more water security [46]. The drought also accelerated exit decisions by farmers facing financial difficulties [42]. Interviewees predicted both more exits and further moves into alternative crops if there were future water shortages and/or costs of water rose.…”

Section: A Future For Small Irrigators?mentioning

confidence: 99%

Managing Water for Environmental Provision and Horticultural Production in South Australia’s Riverland

Robinson

Song

2023

Sustainability

View full text Add to dashboard Cite

This paper outlines and analyses preliminary research in South Australia’s Riverland, part of Australia’s largest river system, the Murray–Darling Basin, and one of the nation’s most important horticultural production areas. It focuses on the Renmark Irrigation Trust (RIT), which supplies water to c570 irrigators. Management of the Basin is controversial, with conflicting demands from stakeholders, including smallholder irrigators, broadacre farming, indigenous groups, and the environment. Climate change and the water market have contributed to uncertainty over environmental sustainability. Using sequential mixed methods, including a questionnaire survey, focus groups and interviews, we investigate the chief risks perceived by irrigators and their future-plans in face of concerns over variable water flows and economic uncertainty. We highlight the RIT’s contribution to river restoration and investigate its plans for additional on-farm water stewardship. We reveal high levels of uncertainty among irrigators regarding their future viability, including unintended consequences from the water market, the controversial role of water brokers, and environmental viability of the river system. The growth of ‘lifestyle blocks’ occupied by hobby farmers has added both to landscape diversity and fragmentation. To maintain a resilient horticultural industry, there may need to be adjustments to water management in the Basin to protect smallholders’ livelihoods whilst continuing to meet specified environmental needs.

show abstract

The impact of drought and water scarcity on irrigator farm exit intentions in the Murray–Darling Basin

Abstract: This is the author manuscript accepted for publication and has undergone full peer review but has not been through the copyediting, typesetting, pagination and proofreading process, which may lead to differences between this version and the Version of Record. Please cite this article as

Cited by 18 publications

References 42 publications

Debunking Murray‐Darling Basin water trade myths

Debunking Murray‐Darling Basin water trade myths

The economics of drought: A review of impacts and costs

Managing Water for Environmental Provision and Horticultural Production in South Australia’s Riverland

Contact Info

Product

Resources

About