VFF Water Council chair Andrew Leahy said the deal involved the Commonwealth acquiring 13,114 megalitres of Goulburn water across 37 separate parcels, paying $4810/Ml — well above the seasonal market average of $3800.
He said the total cost to taxpayers was $63 million.
“This is a clear example of the Commonwealth using its buying power to outbid farmers and inflate the price of water, the very lifeblood of our food production system,” Mr Leahy said.
“It’s appalling. This not only puts farmers under financial pressure, but also undermines the integrity of the water market.”
The VFF is also questioning how the Commonwealth plans to use the water, especially in light of new Victorian rules that limit inter-valley transfers.
These rules are in place to protect the Goulburn River from environmental degradation caused by excessive water movement into the Murray system and down to South Australia.
“There’s been no explanation from the government about how or where this water will be used,” Mr Leahy said.
“It’s irresponsible to buy this volume without a clear, public plan.
“We can’t afford to see the Goulburn River turned back into a water highway to South Australia — it’s not environmentally or economically sustainable.”
Prior to the introduction of the Victorian Government’s trade restrictions, the overuse of the Goulburn River as a delivery channel for inter-valley transfers caused significant riverbank erosion, loss of native habitat and damage to local ecosystems.
“We need to protect our local rivers, not sacrifice them for political water targets hundreds of kilometres away,” Mr Leahy said.
“The Goulburn is not a canal to be exploited. It’s a vital part of our agricultural landscape and community.
“This kind of reckless water purchasing is exactly why farmers have lost trust in the [Murray-Darling] Basin Plan.
“We need water policy that supports food security, environmental balance, and rural communities, not one that drives up prices and drives out farmers.”
