Griffith-based broadacre farmer Chint Quarisa, who has long been a vocal opponent of the effect of the Murray-Darling Basin Plan on irrigators, said the move by the government this week was “a little bit too late”.

“It will help but I think the damage has been done to most rural communities already,” he said.

“It’ll help stabilise things and give people the confidence to go on.”

The legislation to cap Commonwealth water buybacks will be debated in parliament next week.

While it comes as a positive move according to Mr Quarisa, producers across the Murrumbidgee Irrigation Area have already suffered significantly as a result of the Murray-Darling Basin Plan in his eyes.

“I don’t think the federal government or the Murray-Darling Basin Authority realise the damage that’s been done to rural communities across south-east Australia,” he said.

However, with the price of permanent water allotments increasing by around $1100 in the last 12 months, Mr Quarisa said, confidence is returning and the price bump will particularly help horticulturalists.

Wagga-based water broker Tom Wilks believes the price of both permanent and temporary allotments will continue to rise once the buyback cap is legislated, with supply on the water market continuing to drop.

“The flow on (from the rises) will be that some crops that were viable will start to become unviable,” Mr Wilks said.

“As the price of water rises, the use is going to move to a product where (producers) get a higher return.”

Mr Wilks anticipates the legislated cap will prove good news for cotton and nut growers, but less so for water-intensive rice growing operations.

The introduction of the Commonwealth buyback cap has wider implications for the Riverina’s foodbowl communities, according to member for Riverina Michael McCormack.

“Capping buybacks won’t just help farmers and irrigators, it will also shore up basin businesses, communities and other stakeholders which keep vibrant towns and cities such as Griffith, Leeton and Coleambally going,” he said.