The Community Irrigation Fund
Questions and answers about the Community Irrigation Fund
What is the Community Irrigation Fund?
The Community Irrigation Fund (CIF) aims to build resilience in agricultural producers and rural communities, and ensure their long-term economic growth within sustainable environmental limits by reducing the risks they face from water shortages caused by climate change. The CIF helps rural producers adapt to climate change by assisting promoters of community water storage and/or irrigation schemes overcome the high transaction costs of generating investor and/or community support for schemes. Financial support for up to 50 percent of the cash costs of generating investor and/or community support is available to successful applicants, for up to four years.
What is a community water storage or irrigation scheme?
A community scheme is one that is initiated, developed and used by multiple members of a rural community, primarily for irrigation.
Who can apply?
The CIF welcomes applications from promoters of community water storage and/or irrigation schemes which have already completed a feasibility study (or similar). Applicant Groups must be New Zealand-registered legal entities. Applications are particularly welcome from promoters of storage-based schemes who can demonstrate that their scheme represents a good use of the Fund’s money.
What will the CIF fund?
Grants can be used for activities that broadly aim to generate investor and/or community support for community water storage and/or irrigation schemes. Activities may include:
- supporting a project manager or public affairs co-ordinator;
- promotional and communications activities;
- facilitating discussions with the community on relevant issues;
- developing a prospectus for potential investors in the community;
- investigating a range of potential scheme funding arrangements;
- facilitating farmer investment (e.g. showing farmers the benefits and costs of irrigation); and
- investigating possibilities for the multiple use of water by communities (e.g. recreational opportunities).
What will the CIF not fund?
Grants can not be used for:
- capital expenditure or the physical construction of schemes;
- pre-feasibility or feasibility studies, which are potentially funded by MAF’s Sustainable Farming Fund (www.maf.govt.nz/sff);
- assisting with in-kind (non-cash) costs;
- activities more appropriately funded by other funds or organisations;
- participation in statutory processes (e.g. resource consent applications) or litigation;
- local or central government fees or charges;
- legal and bank costs;
- long-term, on-going costs of an organisation/project beyond the grant period; and
- retrospective costs.
How much money does the CIF have?
A total of $5.7 million (excluding GST) in grants is available, spread over eight years (2008/09 to 2015/2016). Successful applicants will usually receive funding for a maximum of four years. In exceptional cases, if funds allow and with the permission of MAF's Deputy Director General (Policy), funding may be granted for a longer period.
Is there a minimum or maximum grant per group?
No, there is no minimum or maximum value of grant for any one group. However, because the total amount available for grants is limited, the value of grants given to any group may be based on the area of land to be irrigated and/or the volume of water to be stored.
How does the CIF differ from the Sustainable Farming Fund?
Both the Sustainable Farming Fund (SFF) and the CIF provide grants on a contestable basis for different stages of the development of water storage and irrigation schemes.
The SFF supports projects that contribute to improving the financial and environmental performance of the land-based productive sectors. It provides grants for pre-feasibility and feasibility studies for water storage and irrigation schemes. In addition, the SFF has also funded numerous other water related (and many non-water related) projects, such as a Code of Practice and Design Standards for irrigation, improving irrigation water efficiency, and guidelines for the design of piped irrigation distribution systems.
The CIF focuses on assisting scheme proposals that have completed a feasibility study (or similar) advance to the next phase of development. Both the SFF and the CIF fund activities that generate community support for schemes. However, because raising community (and investor) support for schemes generally intensifies following the completion of a feasibility study and prior to applying for resource consents, the CIF focuses on assisting scheme promoters with these activities.
It is possible for promoters of a community water storage and/or irrigation scheme to apply to the SFF for assistance with a feasibility study, and once this is completed, apply to the CIF for funding for the next phase of scheme development.
Will the CIF provide grants to upgrade existing schemes?
Yes. The CIF welcomes applications from all promoters of community water storage and/or irrigation schemes, whether they are for new schemes or upgrades to existing schemes. As the CIF is competitive, each application will be considered on its merits.
Can community-led investigations apply for funding?
No. The CIF assists specific scheme proposals reach completion, rather than support wider community investigations that are intended to lead to specific proposals at a later date. Where the investigations result in specific community scheme proposals, and where feasibility studies (or similar) have been completed, then those proposals could apply for CIF support.
How does the CIF contribute to Government’s Climate Change policy?
The CIF is one of central government’s initiatives to assist the agricultural sector and rural communities adapt to climate change. Rural communities reliant on agriculture may be particularly vulnerable to a changing climate. Around 56 percent of New Zealand’s merchandise exports are from the agricultural sector. Major droughts in the past have cost the country hundreds of millions of dollars. Community water storage and irrigation schemes can ensure long-term economic growth within sustainable environmental limits for agricultural producers by reducing the risks they face from water shortages caused by climate change.
How does the CIF contribute to the Sustainable Water Programme of Action?
The Sustainable Water Programme of Action (SWPoA) is a central government-led initiative to improve the management of New Zealand’s freshwater. The implementation package consists of establishing clear national outcomes for water management, government/industry partnerships and enhanced regional planning. It also addresses the undesirable effects of land use on water quality.
The CIF complements the SWPoA’s objectives because schemes involving water storage can increase water supply and reliability, and in so doing help local government manage both the increasing demands on water and over-allocated catchments.
Compared to a situation with no central government intervention, the CIF could lead to:
- more efficient water use;
- less abstractive pressure on groundwater; and
- increasingly water and capital-efficient storage and irrigation schemes.
Contact for Enquiries
Senior Project Adviser
Natural Resources Group
MAF Policy
PO Box 2526
WELLINGTON 6140
Telephone: (04) 894 0632
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