Water Key Ingredient

Calival Dairy Farmers in Running for Coles Award

A positive dairy story in the Weekly Times this week….. and we are very proud as Dehne and Sarah are good clients of Integra’s. They’re down to the top three in the Coles 2017 Dairy Farmer of the Year awards. Dehne, Sarah and Dehne’s Dad Ron have identified what the major risk is for their farming venture – Water.  The changes to the water industry over the past decade have been fast and complex.  Whilst it can be easy to push aside getting to better understand the new world water operates in, the Vinnicombe’s have taken the time to form a successful water strategy plan.

At Integra, we can’t emphasize enough the importance of better understanding your water assets.  Our philosophy at Integra is to educate our clients along the way so when a  trade decision is to be made, the customer has the ability to act quickly – all the groundwork has been done.  Dehne is a great talker and he has spent the time talking with not only us here at Integra, but also with Ron and Sarah so that they are all on the same page. Selling one asset to buy another asset is challenging, but Vinnicombe’s story is a great example of how you can secure your water requirements and increase your personal wealth at the same time.

Regardless of whether Coles recognizes the Vinnicombe’s as winners, their family is the real winners as they are doing what they love best and are sucessful. Go Team Vinnicombe!!!

 

Vic Water Register Makes Comment on Goulburn to Murray Trade Limit

Managing Tagged Accounts Going Forward

The Victorian Water Register yesterday released an article on the Opportunities to trade from the Goulburn to the Murray system, including the use of tagged accounts.  This article confirms what we published prior to Christmas about the trade limit and it also discuss the use of Tagged Accounts and trading rules under action 9.6 of Water For Victoria policy.

Tagged accounts are being utilized this season to access the cheaper Goulburn Water for use in the Murray system. As the article mentions, these tagged accounts are under review and may only be a short term fix.   If  you want to know more about Tagged water accounts, give us a call and we can better explain how the process works and if necessary, we can set you up with the correct ABA.

Here is the  link.  Happy reading.

Water Markets Report November 2017

Customers crave reliable water market information as they have a strong desire to stay in touch with what is driving the markets, who are the market participants and what is the price being paid for allocation and water shares.  The recently released Water Markets report from Marsden Jacobs is a step in the right direction.  From Integra’s perspective,  we value  this type of  report as it builds confidence throughout the industry verifying  what we as a Brokers are see occurring in the market place.  Grab yourself a cool drink and a spot in the shade and have a read of the second water market report for the 2017 -18 year.  Click here

Update on Goulburn IVT Account

The Goulburn system’s inter-valley trade (IVT) account currently account owes about 274 GL to the Murray system.

Goulburn, Campaspe and Loddon systems cannot trade to the Victorian Murray system, New South Wales and South Australia if the volume traded out but not yet delivered to the Murray exceeds 200GL. The Murray Darling Basin Authority (MDBA) is the authority in charge of calling on the Goulburn system to deliver water to Murray customers.   When the MDBA starts to call on delivering the water from the IVT account, the 74,000 megalitres must be repaid first to take  the IVT limit under 200GL before trades can be permitted.

Read more

Bulk Entitlements

A bulk entitlement is a right to use and supply water which may be granted to water corporations, the Victorian Environmental Water Holder and other specified bodies (eg electricity companies). Bulk entitlements allow for the delivery of all required water within the system including high and low reliability shares as well as variable and fixed loss allowances and supplies by agreements. Bulk entitlements are announced every year prior to the start of the Irrigation Season.

Farming Ownership Structures

Every farm business operates within an ownership structure that can be complex given your circumstances. Water being a separate asset to land is also affected by this structure and as such is an important part of business planning. We can help align your water share and delivery shares with your business and land structure for easy succession with your business.

Spillable Water Accounts, Subdivision of Water Shares & Carryover

Spillable Water Accounts

If you carry water over from one irrigation season to another, you risk the Dam ‘spilling’ and losing your water entitilements. There is no guarantee as to access of water over your 100% allocation but the water is recorded in your ABA as ‘spillable water’. You cannot use or trade your spillable water until the Resource Manager makes a low risk of spill declaration.

Subdivision of Water Shares

Water delivery shares are associated with property titles, in the subdivision of land the allocation of the delivery share needs to be considered. This can involve subdividing the delivery share into unit shares. Conditions on your water use licences are different for specific areas of land and this can effect your water use and irrigation processes.

Carryover

As a water share owner, you hold space within the Dam which allows you to hold water from the unused allocation from one irrigation season to another. This will carryover in your ABA from one season to the next. There are rules associated with carryover to ensure that you do not use space within the Dam locking up space for other incoming water for allocation in the new season.

Modernisation

There is a great deal of investment into the modernisation of irrigation districts in the past years to save water and transform the system form a manual to an automatic system. Modernising irrigation systems may involve automating and upgrading channels, rationalising and decommissioning redundant channels, constructing pipelines, upgrading the accuracy of metered outlets to farms and lining and remodelling channels.

The modernisation project originally commenced under the name of NVIRP (Northern Victoria Irrigation Renewal Project). In recent years the project has been handed over to Goulburn Murray Water to manage. The project is currently known as theGMW Connections Project.

Allocation Bank Account – ABA

Allocation is held in what we call an ABA – which stands for Allocation Bank Account. ABA account keeps track of allocations available and any water that you use or trade. ABA’s are created with specific Delivery Source and Delivery Use attributes. As there are trading rules between the various systems and states, the Water Register looks at the ABA attributes prior to approving the trade.

Traditionally only water share owners could have an ABA account. As of 1st July 2014, as part of the Murray Darling Basin Plan, the rules changed and now anyone can apply for an ABA account. For example, a farmer operating in the Goulburn system can apply for an ABA in the Murray (Victorian) system without having to own Murray Water Shares on a permanent basis (and vice versa).

ABA account holders can order an ABA statement from the Water Authority. An ABA statement summarizes the transactions on the account, including an water carried over from previous season.

The Integra Difference

Integra prides itself on being a fully owned and operated business that cares for the success and ventures of every client. We prefer the personal approach and work quickly to assure you get the best value for your water and dollar. With our in house computer system we work to have the paperwork turned around in the day and our convenient location across the road from GWM allows for prompt lodgement of trades.