Fewer farmers are leaving irrigation in the Murray Darling Basin, with more and more of them capitalising on the benefits of institutionalised water trading measures.

The Australian Competition and Consumer Commission’s (ACCC) third annual Water Monitoring Report for the Murray Darling Basin (MDB) report compares data collected in 2011-12 with the last three years, finding that farmers are using water markets to increase business flexibility.

“This report shows that farmers are seeing the benefits of a water market that allows water trading to meet the needs of variable rainfall,” ACCC Commissioner Joe Dimasi said.

The report also highlights that compliance with the water rules, which are enforced by the ACCC, continues to improve. These water rules help to minimise barriers to trade previously imposed by irrigation infrastructure operators.

“Despite the success of recent reforms, the report highlights that barriers to water trade still remain in the Murray-Darling Basin. State governments continue to cap trading opportunities and intervene in the market, creating uncertainty and limiting options for water users,” Mr Dimasi said.

The full report can be found here