Achieving sustainable irrigated dairy landscapes. The dairy industry s natural resource management achievements in Northern Victoria and Southern NSW

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1 Achieving sustainable irrigated dairy landscapes The dairy industry s natural resource management achievements in Northern Victoria and Southern NSW

2 Achieving sustainable landscapes

3 Contents Introduction 4 Dairying in the Murray Dairy region 5 Managing our natural resources 6 Dairy s NRM achievements, Whole Farm Planning in the Shepparton Irrigation Region and Southern NSW 8 Water use efficiency and irrigation management 9 Return on water investment 11 Education 11 Drainage and nutrient management 12 Dairy effluent management 13 Environmental quality assurance 14 Revegetation and biodiversity 14 Research and development projects 15 Efficient irrigation technologies to match soils and dairy farming systems 15 On-farm measurement of the water use efficiency of maize 15 Our Rural Landscape Future Farming Systems Dairy 16 Extension and incentive programs and projects 17 Target Nutrient management 17 Surface drainage 17 Groundwater management incentives 18 Summary and Conclusions 19 Acknowledgements 20 Achieving sustainable landscapes

4 Introduction This report reviews the dairy industry s achievements in natural resource management (NRM) in the Murray Dairy region. Although little recognised and sometimes overlooked, by both the industry and the wider community, the dairy industry s land stewardship has achieved enormous improvements in the management of the region s irrigation landscape since the late 1970s/early 1980s, when salinity developed into a major threat and communities were mobilised to take action. Dairy farmers are the largest single group of land and water managers in the irrigation regions of Northern Victoria and, to a lesser extent, Southern NSW. Murray Dairy is the regional development program for the dairy industry of Northern Victoria, the Southern Riverina in New South Wales and North-East Victoria. With its regional partners (such as the Catchment Management Authorities), it invests around $2 million a year in NRM research and development (R&D). These investments benefit both the dairy industry and the wider regional community. In addition, the region s dairy farmers have made large investments in NRM that often have a positive off-farm environmental impact. Many of the improvements have been implemented with government help in the form of grants or other assistance programs. What is natural resource management? In the dairy industry, natural resources are generally considered to be associated with water, land, and flora and fauna. Three other important natural resources people, animals (genetics) and energy are often overlooked. It is commonly accepted that the major NRM issues associated with the dairy industry in the Murray Dairy region are: water use efficiency; salinity, drainage and watertable control; fertiliser/nutrient balance; dairy effluent management/disposal; soil management; and biodiversity. What is sustainability? In NRM discussions, the term sustainability inevitably pops up. The word means different things to different people. For dairy farmers, sustainable NRM refers to how they manage the water, soils, remnant vegetation, nutrients and dairy effluent on their farms. The United Nations-sponsored Brundtland Report Our Common Future was the first detailed analysis of sustainable development and how it could be applied under many different scenarios. This 1987 report defined sustainability as: Meeting the needs of the present generation without compromising the ability of future generations to meet their needs. Put in simple terms, sustainability is providing for the best for people and the environment, both now and into the indefinite future. Achieving sustainable landscapes

5 Dairying in the Murray Dairy region The Murray Dairy region is the largest dairying region in Australia, with some 2,440 dairy farms producing about 2.5 billion litres of milk (2004/05). This was about 25% of the national production that year and was valued at $813 million at the farmgate. Eighteen dairy factories including milk processing, dairy product manufacturing and milk collection plants support this farm production platform. The aggregate economic contribution from dairy production was estimated at $2.3 billion, including the multiplier effect of farm incomes and input costs. This equates to more than half the region s agricultural production and food processing. The industry directly employs more than 7,000 people in the farm and processing sectors. A further 12,000 are indirectly employed in the trade and service industries. Dairy production and investments in milk processing are underpinned by irrigation. Land use is dominated by irrigated dairying, with about 2,200 of the region s dairy farms (90%) irrigating some proportion of their land. Almost 98% of these farms are in the major irrigation schemes in Northern Victoria and Southern NSW. The remaining 2% are in North-East Victoria and the Upper-Murray of NSW. Farms in the major irrigation schemes are almost entirely dependent on irrigation supplied through the regulated delivery system, supplemented where possible by groundwater or diversion from drains. These farms have developed farming systems that depend on a secure and reliable water supply. Although the number of irrigators in North-East Victoria and the Upper-Murray in NSW is relatively small (about 16% of the total Murray Dairy region), these farms produce more than 25% of the region s milk. They generally irrigate only a relatively small proportion of their land, but production of this irrigated component underpins the whole farming system. The Murray Dairy region The Murray Dairy region covers the Northern Victorian and Southern NSW irrigation areas, North-Eastern Victoria (King, Kiewa and Mitta Mitta valleys) and NSW Upper Murray. The region falls under the North East, Goulburn Broken and North Central Catchment Management Authorities (CMAs) in Victoria and the Murray CMA in NSW. These organisations are responsible for the management of natural resources in the region and co-ordinate the development and implementation of Regional Catchment Strategies, in partnership with the community, rural industries, government departments and other institutions, including local government, the Murray-Darling Basin Commission (MDBC), water authorities, research institutes and the private sector. The dairy industry, through Murray Dairy, is one of the larger industry partners. Achieving sustainable landscapes

6 Managing our natural resources Natural resource management (NRM) is a multi-stakeholder activity, generally co-ordinated and/or legislated by government agencies. The Murray-Darling Basin Commission (MDBC) is responsible for catchment-wide NRM; at the regional (and sub-catchment) level, CMAs play an important role in developing and implementing NRM programs. As stewards of the land, landholders are at the forefront of NRM activities and, as the largest single land user group, dairy farmers have major input to the management of the region s natural resources. The CMAs have each developed Regional Catchment Strategies that set NRM targets. The development process involved extensive consultation with the catchments communities and industries. The strategies are implemented through the sub-regional Land and Water Management Plans (L&WMPs). Targets set in the strategy documents and the best management practices applied in implementing the L&WMPs are based on research findings from regional R&D projects. Implementation of the L&WMPs is often supported by extension programs that include incentive schemes run by the CMAs. The flow diagram opposite shows an example of the integrated management structure that underpins implementation of the Catchment Strategy in the Goulburn- Broken CMA. The dairy industry, through Murray Dairy, has a long history of strong collaboration with both CMAs and the MDBC. The industry contributes to the funding of research, training and extension activities but relies on CMAs and other NRM stakeholders for implementation. For example, in Victoria the dairy industry (through Dairy Australia) co-funds dairy extension programs with the Department of Primary Industries (DPI) Victoria, such as Target 10, but these programs are fully implemented by DPI staff. Similarly, NRM-focused incentive schemes for activities such as Whole Farm Planning, effluent system design and installation, and community drainage are commonly funded through the CMAs and administered through government agencies such as DPI (in Victoria) and Rural Water Authorities. The CMAs on-ground NRM implementation activities can be divided into two groups: on-farm works (e.g. groundwater pumps, irrigation layout, tree planting, effluent management, waterway fencing), generally funded and implemented by landholders, and often supported by CMA programs with industry, State and/or Federal Government funding; and off-farm works (e.g. regional irrigation and drainage systems, regional groundwater pumps, biodiversity plantings, wetlands protection), generally implemented by CMAs with the support of government departments and Rural Water Authorities. Various cost-sharing arrangements apply to investments in NRM activities. This often means that the State and Federal Governments provide the capital for public off-farm works and for grants and incentives for on-farm works (about 25% of the cost of L&WMP implementation each). The remaining costs are carried by landholders (about 45%) and local government (about 5%). A number of extension and incentive programs operate throughout the Murray Dairy region. Different programs apply in each CMA, depending on regional issues and priority setting. The Murray CMA s incentives and implementation schemes are managed through Murray Irrigation Limited (MIL). The CMAs do not generally record and report investment in NRM along industry lines, which makes it difficult to assess the dairy industry s contribution. However, with dairy being the major user of land and water resources in the Shepparton Irrigation Region, it can safely be assumed that a major component of NRM investments in this region relates to the dairy industry. Achieving sustainable landscapes

7 Managing our natural resources... continued Example of an integrated Catchment Strategy approach Basin Salinity Management Strategy Strategic Plans driving natural resource management in the Shepparton Irrigation Region Murray-Darling Basin Agal Management Strategy Victoria s Salinity Management Framework Victorian Biodiversity Strategy Nutrient Management Strategy for Victoria s Inland Waters Goulburn Broken CMA Catchment Strategy Goulburn Broken Native Vegetation Strategy SIR Land and Water Salinity Management Plan Goulburn Broken Waterways Goulburn Broken Catchment Water Quality Strategy Goulburn Broken CMA Pest Plant & Animals Environment Program Farm Program Surface Water Management Program Sub-surface Drainage Program Waterways Program Environmental Protection Works Whole Farm Plan Incentives Community Surface Drainage Incentive Scheme Water Quality Monitoring Waterwatch Nutrient Removal Incentives Groundwater Pumping Incentives Waterways Incentive Schemes Achieving sustainable landscapes 7

8 Dairy s NRM achievements, Whole Farm Planning The Whole Farm Planning (WFP) process is the cornerstone of on-farm NRM in the irrigated dairy industry. It involves mapping existing features on a farm and detailing proposed improvements. It is an essential tool for land use change at the property level and for achieving catchment NRM targets set by the CMAs. WFP is especially important in working towards improved water use efficiency. WFP encourages landholders to apply the best possible farming practices and reduce their off-site impacts. Whole Farm Plans make good business sense and are designed to encourage the adoption of the best management practices specific to the industry, the region and the individual farm characteristics. Statistics on WFP implementation are not generally presented along industry lines. However, analysis of existing data in the Shepparton Irrigation Region can provide an insight to the achievements of the dairy industry. Unfortunately, the lack of industry-specific information makes it impossible to analyse industry WFP progress elsewhere in the Murray Dairy region. Whole Farm Planning in the Shepparton Irrigation Region and Southern NSW Progress in Whole Farm Planning (WFP) implementation in the Shepparton Irrigation Region (SIR) has been impressive. The total area covered by WFPs (broadacre and horticulture) increased from 35,500 ha in 1991 to 208,100 ha in 2005, covering about 70% of the total irrigated area in the SIR. Assuming that dairy farms, including associated industries such as fodder cropping, take up 80% of the area covered by broadacre land use in the SIR, the area covered by dairy WFPs increased from 28,400 ha in 1990 to 161,900 ha in 2005, or an average of about 8,340 ha per year. The average investment in irrigation farm redevelopment is in the order of $4,000/ha, about $500/ha of which is by grants and incentives. So, the dairy industry in the SIR has invested about $570 million in the redevelopment of the irrigation landscape over the past 20 years. In Southern NSW, the State Government has contributed $340,000 towards WFP on dairy farms. The landholders contribution has been about $160,00 to date. 5,000 4,500 Dairy WFP no years Dairy WFP area 180, ,000 Dairy Whole Farm Planning progress in the Shepparton Irrigation Region. 4, ,000 3,500 3,000 2,500 2,000 1,500 1, /87-89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 No of Dairy WFPs 120, ,000 80,000 60,000 Area Dairy WFPs (ha) 40,000 20, Achieving sustainable landscapes

9 Dairy s NRM achievements, continued Water use efficiency and irrigation management When irrigation was developed in the Shepparton Irrigation Region during the early 1900s, border-check (then called flood ) irrigation layouts generally included large numbers of small bays, uncontrolled flows, no reuse and often no access to off-farm drainage. The large volumes of water applied and the runoff generated by poor bordercheck irrigation layouts has given the system a bad reputation. It has often been held responsible for the development of shallow water tables, nutrient losses to river systems and salinisation problems in irrigation areas. However, the border-check irrigation technology has been fine-tuned over the past 20 years or so. Reuse systems are now common and much of the old layout has been changed by laser grading, which provides a consistent slope down the irrigation bay. This reduces the ponding of water on the surface of the bay and accessions to the groundwater system. In its modern form, border-check irrigation can be an efficient method for irrigating pastures. Recent research 1 in Victoria showed that most dairy properties in the Central Goulburn Irrigation District supplied irrigation water equivalent to or less than pasture water requirements in both 1996/97 and 2003/05. There is increasing evidence that the general perception that the dairy industry uses its water resources irresponsibly is incorrect. Irrigation Efficiency (IE) describes the ability of an irrigation system to apply the right amount of water to the root zone at the right time. Irrigation efficiency is 100% when all applied water is captured by the plant roots. IE is affected by a number of factors, the most important being the type of irrigation system, soil type and management. The diagram below shows the expected range in irrigation efficiencies for sprinkler and border-check systems, based on international survey data. 2 Border-check Center Pivot Irrigation efficiency (%) Range of irrigation efficiencies for different systems (after Burt et al.) Centre pivot irrigation systems, when properly designed and managed, can potentially achieve higher irrigation efficiencies than border-check irrigation systems. The adoption of best-practice border-check design and operation in the Northern Victorian irrigation areas has seen significant efficiency improvements in the region and efficiencies of >85% have been measured on irrigation properties. Where existing border-check systems cannot capture and reuse surface run-off, and/or where soil types are permeable and deep drainage losses are high, sprinkler irrigation (such as centre pivot) could achieve a 5% higher irrigation efficiency than border-check, a water saving of around 0.5 ML/ha. The dairy industry continues to invest heavily in upgrading its irrigation layout, and much of this focuses on bordercheck redevelopment. However, with the current water shortages, conversion from border-check to centre pivot irrigation is increasingly considered an option to reduce water use, especially on light soil types. For example, in the Shepparton Irrigation Region the number of centre pivot systems increased from about 25 to 60 over Footnote 1: Department of Sustainability and Environment / Department of Primary Industries Victoria Irrigation water use efficiency benchmarking, Milestone Report 1. Footnote 2: Burt CM, Clemmens AJ, Strelkoff TS, Soloman KH, Bliesner RD, Hardy LA, Howell TA and Eisenhauer DE (1997). Irrigation performance measures; efficiency and uniformity, Journal of Irrigation and Drainage Engineering, 123(6), Achieving sustainable landscapes 9

10 Dairy s NRM achievements, continued Although irrigation efficiency improvement generally is a win-win process for both the industry and the environment, there are some potential negative impacts that will have to be considered by the industry. The environmental and productivity gains from water savings by conversion to sprinkler systems are offset by increasing energy use and, consequently, greenhouse gas emissions. For example, a recent report said that pumping energy costs for centre pivots ranges between $787 and $1,350/ha (2005 net present value for electricity and diesel power respectively, based on a total dynamic head of 35 m, applying 9 ML/ha at a pump efficiency of 75%, with an allowance for driving the pivot. Electric motors were assumed to be 90% efficient, and diesel engines were assumed to have a specific fuel consumption of 0.3 L/kWh). The report concluded that if 10% of the Shepparton Irrigation Region was converted by 2025, 19.8 GWh of additional electricity, or 5.4 ML of additional diesel would be required. 3 Powercorp has been increasing its supply capacity in the region over many years in response to dairy and other industry demands, and the predicted growth in demand would be likely to have minimal operational impact, provided it was spread evenly across the region. In some areas with light soil types, where water savings could be achieved by conversion to centre pivot or lateral move sprinkler irrigation, this option might not be feasible because of infrastructural issues such as location of dairy sheds, channels and roads or the presence of stands of protected remnant vegetation. If pressurised irrigation was to be applied to these areas, other systems would be needed, such as (semi-)fixed sprinklers or sub-surface drip. The regional industry has actively participated and invested in R&D on water use efficiency, focusing on alternative irrigation technology. A joint DSE/DPI and Dairy Australia/ Murray Dairy co-funded project, investigating the application of sub-surface drip irrigation under grazing conditions, commenced in Sub-surface drip could potentially improve water use efficiency in areas where sprinkler irrigation is not an economic or environmentally acceptable option. The industry also invested R&D funds in a recently completed project that investigated efficient irrigation technologies to match soils and dairy farming systems. It delivered a suite of information and support products to dairy farmers, irrigation advisers, system designers and catchment planners, including: an information booklet and guidelines for irrigation system selection, targeting farmers and irrigation advisers; a web-based Decision Support System for Irrigation System Design, targeting farmers and irrigation designers, accessible on the DPI website (www. dpi.vic.gov.au/dpi/vro/vrosite.nsf/ pages/lwm_farmwater_ efficient_irrigati on?opendocument); and information that quantifies the economic and water balance impacts of the broad-scale use of sprinkler irrigation systems in the Shepparton Irrigation Region, targeting catchment planners. In Southern NSW, government investment in irrigation recycling and storage to date has been in the order of $ 1 million. In addition, landholders have contributed a similar amount. Footnote 3: Young, M. (2005). A Discussion on the Energy and Green House Gas Effects Arising from the Adoption of New Irrigation Technology by the Dairy Farming Industry. Michael Young & Associates for Department of Primary Industries, Victoria. 10 Achieving sustainable landscapes

11 Dairy s NRM achievements, continued Return on water investment Irrigation is an important regional economic driver. A recent report by the CRC for Irrigation Futures/CSIRO 4 said farmgate revenue in the irrigated regions rose by 50% between 1997 and 2001, with dairy being a major contributor (64% increase). The report showed that in 2000/01 the dairy industry provided the single-largest contribution to profit in irrigated commodities ($329 million), followed by grapes ($289 million), and fruit and tree nuts ($126 million). Another example of the relatively high returns on water investment by the dairy industry can be calculated from data provided for the North Central CMA region, where broadacre farming is dominant. The 752,000 ML of water used by the dairy industry returned a gross income of $500/ML, compared to the average gross return of $416/ML for the total 1,245,000 ML used by all irrigation users together. 5 Revenue per megalitre of water differs greatly between industries. With the dairy industry at the lower end of the scale, this poses the question: Why isn t every irrigator trying to move into intensive vegetable production? Apart from the immediately obvious factors (vegetable markets would soon be oversupplied), there are other influences, for example, generating more revenue per ML is not necessarily the most successful business or lifestyle choice. Farmers may be influenced by the level of profit (which is not necessarily related to total revenue per megalitre), a sense of sustainability and security, the level of skill and risk involved, and decisions on lifestyle and production preferences. The CRC report concluded that while rice and dairy have low revenue returns per unit of water, the estimated profit at full equity generated is very significant. Agricultural industries have important spin-offs for the regions, such as job creation. For each job in dairy, an additional 0.89 jobs are generated to support this position. In addition, looking at the downstream effect, dairy processing generates an additional three jobs in processing industries. 4 Education The National Centre for Dairy Education Australia (NCDEA), a joint Dairy Australia and Goulburn-Ovens TAFE initiative, will play an important role in ensuring that the next generation of dairy farmers and their employees will be well prepared to face both the future production and natural resource management challenges of the industry. The Dookie Campus will be the regional focus for the NCDEA in the Murray Dairy region. Footnote 4: CRC Irrigation Futures (2005). The Irrigation Industry in the Murray and Murrumbidgee Basins, Technical report June Footnote 5: North Central CMA Regional Catchment Strategy, part 2. Achieving sustainable landscapes 11

12 Dairy s NRM achievements, continued Drainage and nutrient management Footnote 6: Shepparton Irrigation Region Catchment Strategy, June Surface drainage, or surface water management, is an essential component of any parcel of land, be it in a natural state, under dryland agriculture or, even more so, for irrigation farms. Drainage has an external impact on downstream areas that can be both positive (water supply) and negative (water nutrification/pollution). The latter issue is prominent on the national environmental agenda. The 2002 National Land and Water Resources Audit results indicated that high turbidity, salinity and nutrient concentrations in surface waters were variously present in all of the intensive agriculture regions of South-Eastern Australia ( Over the past couple of decades, federal, state and local governments, industries, community organisations and landholders have all invested substantial resources in research, development, extension, incentives and on-ground works to improve the quality of the nation s surface waters. This is reflected by: development of the National Action Plan for Salinity and Water Quality; and continuation of the Landcare program under the National Heritage Trust. The dairy industry has been an important contributor to these investment programs. The recent nation-wide drought has led to unprecedented water restrictions and growing concerns about river health, public attention on water uses, water quality and environmental protection measures. Irrigation farmers have become much more careful in their water management practices and irrigation drainage flows have been all but eliminated, resulting in very low water and nutrient losses to the river systems. Two types of drainage are used in the Goulburn-Broken and North Central CMAs, i.e. arterial or primary drains and community drains. The former are owned, operated and maintained by Goulburn- Murray Water (G-MW); the latter by community groups. Community drains are typically smaller than primary drains, and normally outfall to primary drains. In the Murray CMA, the community drain concept has also been adopted in some of the Land and Water Management Plans. In the Shepparton Irrigation Region (SIR), covering the irrigated sections of the Goulburn-Broken CMA and part of the North Central CMA, the Surface Water Management Program Strategy covers the construction of 1,760 km of community surface drains (under the Community Surface Water Management System), 189 km of primary drains, 564 km of Drainage Course Declaration (removal of obstructions in natural depressions) and 12 km of drain upgrading. 6 G-MW s primary drainage network is constructed with government funds. Community drains in the SIR are funded through a combination of private (90% of cost of survey and design and 50% of cost of construction) and CMA/government funding. Since 1990, construction of G-MW drains in the SIR has been ranging between about 10 and 20 km per year, while Community Surface Water Management System installation was high (>50 km/yr) until the onset of the drought in This reduction reflects a combination of a lack of financial resources in the industry and a lack of forward-looking vision on the need for drainage for when the next wet will hit the region. The landholder contribution to construction of the Community Surface Water Management System is in the order of $30,000/km, indicating that the dairy industry will have invested about $42 million when the scheme is fully completed (assuming 80% of the drains service dairy farms). Landholders pay for the operation and maintenance of the drainage system through an annual drainage levy that is set depending on the service provided. In the irrigated parts of the North Central CMA outside the SIR, community surface drainage has only been applied in the Tragowal Plains L&WMP area; the other three L&WMPs in the area only have farm drainage for on-farm application. 12 Achieving sustainable landscapes

13 Dairy s NRM achievements, continued Dairy is only a small component of the broadacre landuse in the Tragowal Plains area and it is not possible to partition the dairy component of the drainage program from the overall broadacre implementation figures. However, as is the case for the SIR, drainage implementation in the Tragowal Plains was high from 1990/91 till 1996/97, slowed over 1997/98 and has virtually come to a halt since 1998, reflecting the prevailing drought conditions. In the SIR, nutrients are mainly managed through reuse systems that catch runoff, rather than discharging it off-farm. More than 90% of dairy farms in the SIR now have irrigation reuse systems. In the North East CMA area, the focus has been on fencing and off-stream stock watering and on riparian revegetation to intercept nutrient and sediment loads. A survey by Dairy Australia (2006) investigated natural resource management issues in the industry. It covered 1,201 dairy farmers nation-wide of whom 260 were in the Murray Dairy region. In response to the question, Do you implement any activities to reduce the loss of fertiliser from paddocks into waterways due to rainfall or irrigation? the affirmative response by farmers in the Murray Dairy region was significantly higher than the national average (55% of respondents vs. 44%). Kilometres /91 Community SWMS 91/92 92/93 93/94 94/95 95/96 G-MW Primary SWMS 96/97 97/98 Financial Year 98/99 99/00 00/01 01/02 02/03 03/04 Construction of Surface Water Management Systems (drains) in the SIR. Dairy effluent management Dairy effluent reuse systems pose special challenges in relation to nutrient effects on river quality. The 2006 Dairy Australia survey found that 83% of dairy farms in the Murray Dairy region had pond systems installed to manage their effluent. This was 18% higher than in 2000 and higher than the national average of 73%. The proportion using a pump and dispersal system had fallen to 9% from 21% in 2000, while in 2006 only 8% allowed effluent to drain directly to paddocks (down from 13% in 2000). Despite this high adoption rate, results from recent surveys and farm audits by the Environment Protection Authority (EPA) suggest that the systems are often not properly managed and that only a small minority would pass an audit. To resolve this, a new approach has been developed in Victoria under the DairyGains program, a joint United Dairyfarmers of Victoria (UDV), Australian Dairy Products Federation, Victorian Department of Primary Industries and Victorian EPA initiative. Australian Dairy Farmers manages the project on behalf of the UDV. This program aims to achieve 100% compliance with a code of practice for dairy shed effluent, with the process fully self-managed by the industry. Effluent pond in the SIR. Achieving sustainable landscapes 13

14 Dairy s NRM achievements, continued Environmental quality assurance In 2005, Dairy Australia launched the Dairy Self Assessment Tool (DSAT) to help farmers assess the NRM status of their business. DSAT is being customised for different regions/production systems around Australia. The Murray Dairy region s customised version is called Murray DairySAT (MDSAT). The Department of Primary Industries, the Victorian Department of Sustainability and Environment, the Victorian Farmers Federation and the national Pathways to Industry program are working together to jointly deliver Environmental Management Systems (EMS) to landholders across Victoria. EMS is a systematic approach to managing the impacts of an enterprise (such as a dairy farm) on the environment. The Pathways project has adopted MDSAT as the preferred EMS tool for the regional dairy industry. Revegetation and biodiversity The 2006 Dairy Australia natural resource management survey posed the following questions in relation to revegetation: In the past 10 years, have you implemented a revegetation program on your property at all? Which of the following best describes why you implemented a revegetation program? See Table below. % of all respondents National Murray Dairy region Revegetation Total Total NE Vic & Nth Vic NSW upper- & Sthn Murray NSW Implemented revegetation program Stock shade Windbreaks Property value Aesthetics Fauna corridors Improve riverbanks Control soil salinity Commercial forestry Control soil erosion Sixty-two per cent of Murray Dairy respondents said they had implemented a revegetation program over the past 10 years. This proportion is higher than the national average (55%). The reasons for revegetation are mainly linked to stock comfort, both nationally and at the Murray Dairy level. However, property value and aesthetics figure more highly in Murray Dairy than the national average, especially in the Northern Victorian and Southern NSW irrigation areas. Interestingly, despite the very intensive land use on their farms, the planting of fauna corridors has been taken up by Northern Victorian/Southern NSW irrigators at a higher rate (26% of respondents) than by their national dairy colleagues (19%). Salinity has also been a great driver for revegetation. Over the past 10 years, the dairy farming community has contributed significantly to the revegetation and biodiversity improvement of the Murray Dairy region s irrigation landscape. 14 Achieving sustainable landscapes

15 Research and development projects Research and development (R&D) has been a major focus of NRM investment for Murray Dairy. The R&D projects add considerable value to the CMAs Catchment Management Strategies and to the implementation of Land and Water Management Plans. R&D underpins many of the best management practices and incentive schemes adopted by the CMAs. Since 2000, the following R&D projects have been developed, implemented and often co-funded by Dairy Australia/Murray Dairy in response to the Murray Dairy Regional Action Plan. Efficient irrigation technologies to match soils and dairy farming systems This project, discussed in the water use efficiency section below, provides guidance for the process of changing from border-check to sprinkler irrigation technology. On-farm measurement of the water use efficiency of maize This two-year project began in November 2003 and was jointly funded by Murray Dairy and DPI. The final report was published in December On-farm measurement of the water use efficiency (WUE) of maize (WUE defined as the dry matter produced per unit water use, i.e. rainfall + irrigation + change in soil water content) was identified as a research priority in the Murray Dairy Action Plan. Maize, as a C4 species, was likely to have a much higher WUE than many other forages suitable for dairying in Northern Victoria, but no water use information was available for maize in this environment. Also, with some farmers irrigating maize using pressurised systems such as centre pivots, information on the crop s water requirements in relation to weather conditions was needed to assist in irrigation scheduling. The project measured components of the water balance under three commercial maize crops grown for silage. Two crops were grown using centre pivot irrigation; a third crop was irrigated using the border check system. Growth and water use were monitored and the irrigation water applied was measured. The crop yields were considered above average for the district. Total water use by each crop was within the range expected for maize under the prevailing weather conditions. Also, as expected, WUEs were much higher than for most other forage crops (see project below). However, there was little difference between the WUE at the two sprinkler sites (2.9 and 3.4 t DM/ ML) and the border-check site (2.9 t DM/ ML). A well-designed and managed border-check system can be a very efficient user of water. Achieving sustainable landscapes 15

16 Research and development projects... continued Our Rural Landscape Future Farming Systems Dairy The Murray Dairy Action Plan identified pasture water use efficiency (WUE) as an important research issue. Changing the mix of forages can be expected to increase the WUE of farming systems, but there is little comparative data available to help farmers select the most appropriate forages to grow. A project to fill this knowledge gap began in early 2004 on a DPI Kyabram field site. It aims to quantify and compare the WUE of a range of forage systems used by the dairy industry in Northern Victoria. It is funded by the Victorian Department of Innovation, Industry and Regional Development (DIIRD) under the Science, Technology & Innovation initiative. The forages sown in April 2004 were: perennial ryegrass/white clover; tall fescue/white clover; lucerne; Persian clover (Shaftal)/Italian ryegrass; subterranean clover/italian ryegrass; subterranean clover/italian ryegrass (spray irrigated); and double crop (oats/millet). The forages are border-check irrigated (with the exception of the subterranean clover/italian ryegrass pasture which receives spray irrigation) and managed using best management practices specific for each forage type. The plots are either grazed by dairy cows or cut for hay/silage, following local practice. Forage production and water use are measured and used to calculate water use efficiency. Forage system performance is very dependent on climatic conditions and irrigation water requirements vary considerably from year to year low rainfall years are usually high evaporation years and vice versa. There are a wide range of factors other than dry matter production and water use that also need to be considered when comparing the relative milk production potential and financial costs/benefits associated with forage systems. Ultimately, the forage systems need to be incorporated in whole farm system analyses, using case studies to take all these factors into account. The results of this project will provide an important contribution to such farm system analyses. 16 Achieving sustainable landscapes

17 Extension and incentive programs A number of extension and incentive programs operate throughout the Murray Dairy region, including Whole Farm Planning, Community Surface Water Management (drainage), Groundwater Pumping, Revegetation & Environmental Works, Automatic Irrigation, Drainage Reuse and Drainage Nutrient Removal. The schemes promote the adoption of responsible NRM technology, based on a cost-share approach between industry and the wider community. The following schemes, managed through the CMAs, have important dairy industry components: Target 10 Target 10 is an industry-driven, statewide dairy industry development project catering to the needs of Victorian dairy farmers. Since its introduction in 1992, it has gained widespread support from dairy farmers and attracted resources from the entire industry. The major stakeholders are the Victorian DPI and Dairy Australia. Although many of the Target 10 activities focus on production, NRM issues covering responsible water and nutrient/effluent management, take up 30% of the program s budget. Surface drainage The Community Surface Water Management Scheme in the Shepparton Irrigation Region is funded through a combination of landholder (10% of cost of survey and design and 50% of cost of construction) and CMA/government funding (remaining component). Nutrient management The Drainage Nutrient Removal Scheme in the Shepparton Irrigation Region provides incentives for the construction of water storages of >50 ML capacity with pump to divert water from Goulburn-Murray Water primary drains for irrigation use. The incentives cover 25% of the cost of construction up to a maximum of $20,000. Achieving sustainable landscapes 17

18 Extension and incentive programs... continued Groundwater management incentives The Shepparton Irrigation Region The sub-surface drainage program aims to use groundwater management to protect and reclaim land and water resources in the Shepparton Irrigation Region (SIR) from salinisation. Shallow groundwater pumping provides the region with both salinity protection and a source of additional irrigation water. The sub-surface drainage component of the SIR s Catchment Strategy includes providing assistance to landholders for the location and installation of shallow groundwater pumping sites, as well as the upgrading of existing groundwater pumping systems. Funding is available to high-risk salinity areas, i.e. watertables within three metres of the surface. Groundwater pumping incentive schemes available to landholders are: Farm Exploratory Drilling Scheme (FEDS) Financial and technical assistance to locate groundwater pumping. Capital Grants Scheme (CGS) Financial assistance for capital works to install new groundwater pumping systems, and upgrade existing systems. The vast majority of groundwater pumps are installed in pasture/dairy areas. By 2005, 257 groundwater pumps had been installed under the scheme far exceeding the target of 274 and 70 existing pumps had been upgraded (target was 63). The estimated area protected by the pumps was around 35,700 ha. The annual landholder contribution to regional groundwater Landholders contribution to groundwater management in the SIR Private Pumps (CGS+FEDS) ($ 000) Public Pump Operation ($ 000) Total ($ 000) 00/01 $179 $229 $408 01/02 $131 $311 $442 02/03 $444 $376 $820 03/04 $519 $414 $933 04/05 $165 $507 $672 05/06 $212 $511 $723 Av. 00/06 $275 $391 $666 management is presented in the table below; it is composed of installation of pumps on-farm and the landholder contributions to the operation of Public Pumps in the region. Average annual industry contributions over the period have been about $666,000. The North Central CMA Groundwater in the North Central CMA irrigation areas outside the Shepparton Irrigation Region is generally too saline for irrigation use, even when shandied with channel supplies, and no incentives are available for groundwater pumping. The North East CMA With salinity and shallow watertables only a minor problem, no groundwater pumping incentive schemes are available for the NECMA. The Murray CMA The Murray CMA s L&WMPs implementation involves the strategic installation and operation of a mix of private and public groundwater pumps. There is a strong preference for the use of privately operated pumps and reuse of the water for irrigation purposes but this, however, will not be possible in all circumstances. The total government contribution to groundwater pump installation on dairy farms has been $18,000. No data are available on dairy farmers contributions. 18 Achieving sustainable landscapes

19 Summary and Conclusions Over the past two decades, the dairy industry in the Murray Dairy region has made a major contribution to the management of the region s natural resources. Industry investment In the Shepparton Irrigation Region alone, dairy farmers have spent $570 million on redeveloping irrigation infrastructure on their farms, improving water use efficiency and general landscape health. In addition, $666,000 a year was spent on watertable control ( ). On completion of the regional surface water management program, the dairy industry will have contributed about $42 million towards the installation of regional surface drainage. Although dairy farming is a less dominant land use in other parts of the Murray Dairy region, there is no reason to expect that the industry does not carry its fair share of NRM investments in those areas. Data for the Murray Irrigation Limited region in NSW show that the approximately 125 dairy farmers in the region have jointly invested about $160,000 in Whole Farm Planning and close to $ 1 million in the installation of irrigation recycling systems. The drought conditions since the late 1990s have led the industry to focus on issues associated with water availability and security. Despite this, investment in NRM has continued, albeit in some cases (such as community drain construction) at a reduced rate. The industry efforts have been aided by actively promoted financial incentive programs by the CMAs. Water use efficiency Major advances have been made in water use efficiency. Despite the general public perception that border-check irrigation of pastures is wasteful, the system has been proven to be very efficient on the heavier soil types that are predominant in the Murray Dairy region and can match the efficiency of sprinkler irrigation under these conditions. Water use information that has recently become available clearly shows that dairy farmers are responsible irrigators and are not applying excessive amounts of water to their pastures. In addition, the use of gravity, rather than carbon-based energy for pumping, makes border-check irrigation a greenhouse-friendly irrigation technology. Industry awareness and commitment There seems to be a lack of general awareness among dairy farmers that the industry is a major contributor to responsible management of the landscape and its environment. Indeed, many of the on-farm investments have both production and environmental benefits (e.g. Whole Farm Planning, drainage reuse, effluent reuse). The lack of awareness did not translate into lack of action. As a clear example, the progress in Whole Farm Plan implementation shows that the dairy industry takes its responsibilities seriously and continues to invest in the improvement of its natural resource base. Continued contributions to revegetation and biodiversity improvement activities by the dairy industry are other examples of this commitment. Achieving sustainable landscapes 19

20 Contact details Tel: (03) Fax: (03) Registered Office: Murray Dairy 120 Cooma Road Kyabram Victoria 3620 Acknowledgements This document was prepared by the Natural Resource Management Coordinator for Murray Dairy. This position is funded by the Federal Department of Agriculture, Forestry and Fisheries under the National Landcare Program. Much of the information was obtained from CMAs and other government departments. Where appropriate, references are indicated in footnotes throughout the document. The document was reviewed by representatives from DPI Victoria, farmer organisations and CMAs. However, the content of the publication is solely Murray Dairy s responsibility. 20 Achieving sustainable landscapes