Community Irrigation Fund
Questions and answers about the Community Irrigation Fund (CIF)
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 provides grants to assist:
- 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; and
- local government entities to undertake water strategies that involve strategic planning for water management and that consider the potential for rural irrigation-related infrastructure.
Financial support for up to 50 percent of the cash costs of generating investor and/or community support is available to successful community scheme applicants, for up to four years.
Financial support for up to 50 percent of the costs of activities contributing to the development of a water strategy is available to successful local government applicants, for up to three years
When was the CIF expanded to fund water strategies?
The CIF was expanded in February 2009 to provide grants for local government-led water strategies that consider the potential for rural irrigation-related infrastructure. The expansion was an outcome from the Water Infrastructure Forum held in December 2008.
Why was the CIF expanded to fund water strategies?
A strategic approach to integrating water infrastructure, water allocation and water and land management can aid community support and/or consents. Water strategies can help avoid ad hoc development of irrigation schemes or options being foreclosed on better meeting the community’s needs.
Water strategies developed with communities working together are likely to improve economic, environmental and social/cultural outcomes in water short regions. Water storage and irrigation scheme opportunities will be more clearly understood before new or upgraded infrastructure is promoted.
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 that have already completed a feasibility study. Applications are particularly welcome from promoters of storage-based schemes who can demonstrate that their scheme represents a good use of the CIF money; and
- local government (including both Regional and all relevant Territorial Authorities) and/or an entity undertaking the local government-led water strategy on behalf of local government.
Applicants must be New Zealand-registered legal entities.
What will the CIF fund?
Community schemes
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 governance structure;
- 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).
Water strategies
Grants can be used for activities that contribute to the development of a water strategy for an area. Activities for which you could use grants include:
- technical reports - water resource assessments in the form of the nature of the resource and available water such as:
- water resource assessments,
- water demand reports;
- environmental flow reports (restricted funding available) for the management of rivers for example:
- flow investigation reports (flow and/or landscape related)
- environmental impact reports;
- economic impact reports;
- social impact reports;
- development of evaluation criteria;
- writing a strategy;
- consultation with experts, stakeholders and public;
- providing information for communities and determining community preferences on the options;
- promotional and communication activities;
- supporting a project manager; and
- administration costs of project.
What will the CIF not fund?
Community schemes
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.
Water strategies
Grants cannot be used for:
- water strategies that don’t consider rural water infrastructure;
- funding infrastructure (e.g. irrigation schemes, hydrological monitoring sites etc);
- feasibility studies for individual schemes (see Sustainable Farming Fund and Sustainable Management Fund);
- costs associated with legal action or opinion; e.g. expenses incurred in Environment Court;
- processes associated with incorporating a water strategy into regional or district policies and plans;
- retrospective costs; and
- activities that are considered part of a council’s statutory role or normal business management, unless funding them can be justified on the basis of need.
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 community scheme applicants will receive funding for up to 50 percent of the cash costs of generating investor and/or community support, for a maximum of four years. Successful local government applicants will receive funding for up to 50 percent of the costs of developing a water strategy, for a maximum of three 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; and
- the impact a water strategy is likely to have on water storage and irrigation schemes in its related region/district.
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 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.
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 New Start for Fresh Water?
The New Start for Fresh Water is a central government-led initiative to improve the management of New Zealand’s freshwater. The programme consists of stronger central government leadership, identifying the contribution water infrastructure (including storage) can make to improved water use, and addressing the barriers to this, identifying information and capability gaps, examining an allocation regime that can provide for ecological and public values, and maximises the return from water available for consumptive use. The programme also addresses the undesirable effects of land use on water quality.
The CIF complements the New Start for Fresh Water’s objectives by supporting local government water strategies and assisting community water schemes that can increase water supply and reliability. CIF also helps local government manage both the increasing demands on water and over-allocated catchments.
CIF aims to support initiatives that lead to:
- more efficient water use;
- less abstractive pressure on groundwater; and
- increasing water and capital-efficient storage and irrigation schemes.
How do I find out more about climate change?
Click on this link to go to the climate change section on MAF’s website.
Contact for Enquiries
Senior Project Adviser
Natural Resources Group
MAF Policy
PO Box 2526
WELLINGTON 6140
Telephone: (04) 894 0632
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