When to Stop Irrigating & Start Buying Feed

The Economics of $550/ML Water: When to Stop Irrigating & Start Buying Feed

In the Goulburn Valley and Murray districts, water has hit a tipping point. With temporary prices sitting at $550/ML this month, we’re seeing more producers face the same gut-wrenching choice: keep the pumps running or let the pastures go brown?

Watching a perennial stand dry off is never easy, but at today’s prices, trying to keep it green is a fast way to burn through your margin. The reality is that home-grown pasture is currently the most expensive feed on your farm.

The Math: Water vs. Fodder

You have to look at what that water is actually producing. On a good run, a Victorian ryegrass pasture might give you 1.2 to 1.6 tonnes of Dry Matter (DM) per Megalitre over summer.

• At $100/ML: Your feed cost is about $70/tonne. (Keep watering).
• At $300/ML: You’re up to $210/tonne. (It’s getting tight).
• At $550/ML: Your feed cost is now $385/tonne – and that’s before you pay for fertiliser, the tractor, or your own time.

The Verdict: By the time you’ve grown it, that grass is costing you well over $450/tonne. You can land quality cereal hay or grain for similar money without the risk of a heatwave frying your investment overnight.

Summer Irrigation is a Leakage Game

It’s not just the price; it’s the efficiency. In a Victorian heatwave, you’re losing a massive chunk of that $550/ML water to evaporation before the plant even sees it. On top of that, heat-stressed pasture loses its “punch”, you end up paying top dollar for maintenance-only feed.

Drying Off Without Killing the Farm

Stopping the water doesn’t mean you’re done. It means you’re switching to survival mode to protect your base for next year.

• Pick your battles: If you have to water, put it on your youngest, highest-performing stands only. Let the old paddocks go dormant.
• Use a sacrifice area: Don’t let stock graze dormant crowns down to the dirt. If you scalp the paddock now, it won’t bounce back when the rain eventually hits.
• Feed for energy: With milk prices steady, you can afford to buy feed, but it has to be nutrient-dense. This is why we’re seeing a huge shift toward Faba Beans and Grain, they offer more megajoules for your dollar than watered-on grass.

What should you put in the troughs?

If you turn the pump off today, you need a plan:

• For Fibre: Barley or Wheaten Straw is the cheapest way to provide gut fill.
• For Protein: Faba Beans or Cottonseed. These commodities are currently delivering a cheaper unit of protein than irrigated Lucerne.
• For Energy: Feed Wheat is currently trading at a better energy-to-price ratio than most hay lines.

Irrigation is a tool to make money, not a hobby. At $550/ML, that tool is blunt. Buying your “water” in a bale or a grain bag preserves your cash and protects your soil for when the season resets.

Give the team a call if you need help comparing feed tests or finding a load, we’re here to help you do the math.