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Edition: U.S. Article Comments (0) Email Print Reprints Read Toxic Hungarian sludge spill reaches River Danube | 07 Oct 2010 NJ governor kills Hudson River tunnel due to costs 12:10am EDT Obama kills foreclosure bill as fury mounts 07 Oct 2010 Analysis: Commodities poised to ride central bank cash higher 07 Oct 2010 States to receive $1.5 billion for small businesses 12:07am EDT Discussed 88 Super-rich investors buying gold by the ton 74 Racial predatory loans fueled U.S. housing crisis: study 63 U.S. apologizes for syphilis experiment in Guatemala Watched Flight attendants go Gaga Wed, Oct 6 2010 Red faces over top model gaffe Tue, Sep 28 2010 Serbia on Danube toxic spill alert Thu, Oct 7 2010 Australian farmers to lose water to restore rivers Tweet This Share on LinkedIn Share on Facebook Factboxes Key facts about Australia's Murray-Darling basin 2:06am EDT Key issues for Australia's Murray-Darling foodbowl 2:06am EDT Related Topics World » Green Business » Australia » COP15 » By James Grubel CANBERRA | Fri Oct 8, 2010 2:06am EDT CANBERRA (Reuters) - Farmers would lose more than a third of irrigation water in Australia's major food bowl, the Murray-Darling, under a plan released on Friday to restore ailing rivers, posing a new headache for the Labor minority government. The move could see the value of cotton production cut by 25 percent, and farmers and irrigators have warned of farm closures, massive job losses and higher food prices if the plan by the Murray-Darling Basin Authority is adopted by the government. Environmentalists welcome the cuts, saying they will help Australia's major river system survive future droughts brought on by climate change in the world's driest inhabited continent. Prime Minister Julia Gillard's fragile one-seat majority government is dependent on support from both rural independents and the Green party and will have to balance both interests in deciding whether to adopt the plan by the end of 2011. Under the new plan, irrigation rights would be cut by between 3,000 to 4,000 gigalitres a year, cutting water supplies to farmers by between 27 to 37 percent, with the government to buy back water licenses to compensate farmers. "Cutting water use ... will reduce the supply of food and fiber and increase the number of farmers leaving the land, resulting in the destruction of farm and rural communities," said Victorian Farmers' Federation President Andrew Broad. But the authority said the cuts were needed to guarantee the long-term health of the nation's major rivers, which have suffered a century of neglect and over-allocation for irrigation. "The real possibility of environmental failure now threatens the long-term economic and social viability of many industries and the economic, social and cultural strength of many communities," the 200-page report into the river system said. The Greens party, which will control the Senate from July 2011, called for the government to stand by the plan. "We've known for years that the (irrigation) system has been over-allocated, now it's time to get the balance right," said Greens Senator Sarah Hanson-Young. "We need a sustainable river system -- it's the only way to keep communities around the river sustainable as well." FOOD BOWL The Murray-Darling basin is Australia's food bowl, accounting for 40 percent of agricultural production and 93 percent of domestic food production. The basin supports food and cotton producers and covers 1.06 million sq km, 14 percent of Australia's landmass and an area the size of France and Spain combined. The basin covers four states and contains Australia's three biggest rivers, the 2,500-km (1,550 miles) Murray, the 2,700-km Darling and the 1,690-km (1,050 miles) Murrumbidgee. 1 2 Next World Green Business Australia COP15 Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. 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