— 12 IREC Farmers' Newsletter No. 200 — Spring 2018 Irrigators have a range of options for accessing water. There is no single best option and so it is important to consider which product/s best suit your business. BROADLY, the options are owning (or leasing) a water entitlement but there are several types of entitlement, with varying allocations year-to-year. There is also the option to buy an allocation, which is a deliverable volume of water. The types of water entitlements available in the Murrumbidgee Valley, as at 1 July 2017, are summarised in Table 1. Table 1: Murrumbidgee Valley water entitlements Water source Total ML $/ML Allocation reliability Capital invested per allocated ML High security 360,297 5,000 95% $5,263 General security 1,891,895 2,200 60% $3,667 Supplementary 198,780 600 40% $1,500 Groundwater (Lower Murrumbidgee) 267,500 2,475 100% $2,475 Note: prices as at May 2018 Comparison of entitlement types General security entitlements are good value compared with high security but have significant allocation risk. Seasonal conditions result in high variation of annual allocation announcements. Over the last 20 years general security allocations have averaged 59%, ranging from 13% to 100%. Up to 30% of unused general security allocations can be carried over from one water year to the next. As this water is already allocated there is no allocation risk (unless the dam spills). Carry over allows irrigators to manage their own allocation risk to some extent. Entitlements can be leased, with the lessee usually wearing the allocation risk. Typical lease rates are 5% of capital value. Allocated water can be purchased as a temporary transfer, for use in the current water year or as forward water for use in the next water year. When considering and planning water, remember that rainfall is an important water source — 400 mm of rainfall per annum is 4 ML/ha. The advantages and disadvantages of different types of water entitlement are presented in Table 2. General security entitlements are good value compared with high security entitlements but have significant allocation risk. Over 20 years general security allocations have averaged 59%. — 12 IREC Farmers' Newsletter No. 200 — Spring 2018 Water products