12 acres and contracted water lisence. What to do?

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Sun, 07/19/2015 - 11:59 #1

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9 years 3 months
JT
Last seen: 03/08/2018 - 21:05
Joined: 07/19/2015 - 11:45

12 acres and contracted water lisence. What to do?

Hi all, im very seriously looking at a 16 acre property with a house and 12 acres of cab sav vines that are irrigated by recyled water. The problem is i know nothing about vines and the water is locked into a contract at a cost of $6000 per year. To have the vines managed will cost to much ( quoted 30 grand! ) so i would likely tear them out with my fathers earth moving equipment. My question is what do i run or grow on the property to cover the cost of the water and possibly make a profit? The land is an hour south of adelaide and reasonably sloping in nature. Any thoughts will be greatly appreciated!
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Mon, 07/20/2015 - 10:51 #2
barb
Last seen: 09/17/2019 - 18:07
Joined: 11/23/2011 - 09:38

Hi,

Personally, I would have a very good think before buying a property with no water supply of its own. Especially as you have no experience in growing grapes. Maybe someone else with more experience can give you a better answer as I am a grazier and have my own dams.

 

cheers,

Barb

 

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Tue, 07/21/2015 - 13:50 #3
rmcpb
Last seen: 03/08/2018 - 21:05
Joined: 10/22/2012 - 11:13
I agree with Barb. Let this one slip through to the keeper. If you would be contracted for 6k a year and you know nothing about the existing grapes then I would leave it for someone with the knowledge. Making it worth it on such a small block would not be easy or guaranteed and you could end up with an expensive puddle of water. Cheers Rob.
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Wed, 07/22/2015 - 11:25 #4
charlie
Last seen: 12/26/2018 - 09:21
Joined: 05/31/2011 - 09:44

Hi JT,

I tend to agree with the other two replies, $6k is a lot of money for water, is supply guaranteed at this price?

I assume with it being recycled that it is coming from a sewage treatment plant or elsewhere, I would be finding out the quality of the water and if it is suitable quality to water other horticultural crops? It may be a long shot but if you did remove the vines and the soil type is suitable you may be able to consider irrigated lucerne.

You can see from the quote you that grapes have a high fixed cost regardless of the yield and price of grapes.

Have you looked into the cost of removing the grapes and material as I know this is not cheap?

Charlie

 

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Wed, 07/22/2015 - 19:53 #5
JT
Last seen: 03/08/2018 - 21:05
Joined: 07/19/2015 - 11:45
Thanks for the replies. I will call the governing body to find out more about the water and the contract before i commit to anything. Cheers!
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