Groundwater trading

Case Study 6 Groundwater trading enables year round production

Key Facts

Name Rocky Lamattina Farm and location Rocky Lamattina & Sons, , Farm size 2600 hectares Farm enterprise / Carrots under irrigation, barley, crops mustard and green peas

Water use Have bought permanent As well as producing carrots, they also grow barley, groundwater licences in the West Wimmera Groundwater mustard and green peas, selling the barley but Management Area ploughing in the rest as green manure. They harvest carrots at Kaniva from February through July, followed

by six months at Wemen. During harvest about 1000 Rocky Lamattina & Sons have permanently traded tonnes of carrots from Kaniva are trucked to the groundwater licence for their Kaniva farm to produce Wemen processing plant each week. The business also carrots over summer. They purchase temporary has a juice factory producing concentrated carrot juice surface water licences as required. Kaniva is in the and a packaging company, not only for their carrots northern zone of the West Wimmera Groundwater but also servicing other customers nationally. Management Area (GMA) and incorporates the area west of the to the South Australian border, and north to the Big Desert. Water use Rocky Lamattina & Sons now grow 300 hectares of The farm carrots under irrigation at Kaniva and are working to increase that to 400 hectares. With only half the land Rocky Lamattina & Sons began operating in 1991 in under pivots, crop rotation means those areas that are Wemen, on the banks of the Murray River. Rocky’s irrigated only receive water one year in three. dream was to grow carrots, choosing Wemen for year round production. But the hot summers in the region affected the quality of their product and with the drought biting, Rocky and his three sons decided to look for a cooler climate farm. They eventually settled on land at Kaniva where the temperature was on average five to six degrees cooler resulting in reduced water loss through evaporation and better quality carrots.

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Groundwater trading – Case study 6

‘We only use about half of the water we own – we’ve ‘Buying temporary water might be okay on a year to gone slowly into it. The previous farmer had bores in year basis for growing lucerne. But my situation is more the centre of pivots so he didn’t have to pipe but we permanent and I’m looking at decades down the track. have them strategically placed, with a common main Children are starting to realise farms are a corporate that delivers the water to the pivots we’ve set up.’ business and are staying on the farm. We’re dreaming for my grandkids. The trading experience ‘If I find the amount of groundwater I’ve got is more The Kaniva property came with a 2000 megalitre than I need in the long term I can always temporarily groundwater licence and the Lamattinas have sell some of it and if we are ever put on a restriction purchased land with another 1000 megalitres of we’d adapt, grow less, or grow in Wemen for nine groundwater licence since then. They allow the Kaniva months and three in Kaniva or vice versa.’ football club to make use of that land to run sheep, and have transferred most of the 1000 megalitre The trading process groundwater licence to their carrot farm. They have The experience of groundwater trading has been a since also bought two smaller groundwater licences. positive one for Rocky and his sons. Rocky let the local Rocky says he’s been fortunate to trade groundwater real estate agent know he’d be interested in buying licence permanently rather than on a temporary year permanent trade of a groundwater licence. He thinks to year basis. By contrast they buy surface water for the process has worked well, particularly being able to the farm at Wemen from the Murray River on a purchase land in the area with a groundwater licence temporary basis (allocation trade), believing there are and transfer that licence to his carrot farm. more possibilities from the regulated system as there is ‘I’ve managed to make it work and others could. I think a bigger pool of people to trade from. we’ve shown people what can be done and I think Rocky Lamattina is thinking about the family’s water there’ll be more trading happening – both permanent needs in years to come and believes he needs to and temporary.’ secure the groundwater for their Kaniva farm as it All groundwater trades are of course subject to the develops. approval of Wimmera Water (GWMW). In assessing each application GWMW ensures the trades meet all requirements including those set out in the West Wimmera Groundwater Management Strategy, the groundwater management document for the area including Kaniva where Rocky’s farm is located.

The benefits Rocky says buying permanent groundwater has helped secure his family’s farming future at Kaniva. The Lamattinas are now in a position to double carrot production believing their business will continue to grow, especially when it comes to export. Investment in groundwater has created that opportunity.

The benefits also extend to Kaniva. The company currently employs about a dozen Kaniva residents and Rocky is proud that this helps create activity and opportunities for the town.

Groundwater trading – Case study 6

‘The people we employ spend their money in the town - at the grocers, at the petrol station - and this keeps the town alive. ‘I would absolutely encourage others to trade so that Groundwater trading: groundwater can be used. Every litre can improve • provides greater flexibility for licensed returns. It’s all to do with affordability and availability. groundwater users to manage production Trading is making groundwater available to use for a • enables new developments to occur in better cash return crop.’ systems where all available resources have been allocated and entitlement limits have been reached • allows better management of the risk of drought and reduced water availability • enables water to move from lower value to higher value uses, boosting returns from water use • enables entitlements to be transferred to reduce environmental impacts.

In the West Wimmera Groundwater Management Area, trading can only occur within the same aquifer and cannot occur between zones. There are some limitations on trades between sub-zones within zones, aimed primarily at reducing the intensity of use within these sub-zones. For more information on the local management rules speak with Grampians Wimmera Mallee Water or download the West Wimmera GMA Management Strategy at http://www.gwmwater.org.au/services/groundwater /west-wimmera-gma

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