A study has found most cattle farmers are willing to invest in enhancing their dams, including improving water quality, biodiversity and reducing emissions - if they receive fair government support.
With nearly two million farm dams across Australia, these waterbodies are a defining feature of agricultural landscapes. While they are critical for livestock, farm dams can also provide key benefits for the climate and biodiversity.
Simple changes - such as fencing dams to keep out livestock, organising troughs, planting native vegetation around the edges and restoring natural habitat - can transform them from sources of pollution and greenhouse gases into cleaner, healthier ecosystems that support wildlife, improve water quality and cut methane emissions.
A study by Deakin University, in collaboration with RMIT University, The Australian National University (ANU), Flinders University and the University of Western Australia, published today in the Journal of Environmental Management, surveyed more than 500 farmers across south-eastern Australia.
Results show about 80% of farmers would participate in a dam restoration program, with an average annual payment of around $1,370 per dam required to encourage widespread adoption.
RMIT University's Dr Martino Malerba. Image: supplied
Senior author Dr Martino Malerba, who conducted the research at Deakin and is now based at RMIT's Centre for Nature Positive Solutions, emphasised the potential climate benefits.
"Enhancing farm dams is a win-win for farmers, for the climate, and for biodiversity because it provides cleaner water, habitat for wildlife and lower emissions," he said.
"This study shows farmers are on board, but we need schemes that match their expectations."
Lead author and Flinders University PhD candidate Elizabeth Galanis said the research highlighted both the opportunities and challenges of using financial incentives to scale up dam restoration.
"Farmers are interested and willing to act but they also face real costs and risks, such as the upfront expenses of fencing or pump or trough failures disrupting operations," she said.
"Our study shows modest but fair incentives could make the difference between inaction and widespread uptake."
A farm dam. Image: Supplied
Associate Professor Andrea Vocino from the Deakin Business School, who co-authored the report, said policy design was crucial.
"Carbon credits can contribute, but they don't fully cover the costs. That means governments and markets need to work together to create layered incentives that are financially viable, credible and fair for farmers," she said.
The researchers also say public funding, carbon markets, and potential biodiversity credits could be combined to unlock the full environmental benefits of farm dam enhancement.
'Incentivising farm dam Enhancement: Barriers, motivations, and market potential in Australian grazing systems' is published in the Journal of Environmental Management (DOI: 10.1016/j.jenvman.2025.127314).