Production and export

In the 1920s it was seen as a possible irrigation crop on soils within the Murray-Darling Basin that were too heavy for the cultivation of fruit and too infertile for wheat. Because irrigation water, despite the extremely low runoff of temperate Australia, was (and remains) very cheap, the growing of rice was taken up by agricultural groups over the following decades. Californian varieties of rice were found suitable for the climate in the Riverina, and the first mill opened at Leeton in 1951.

Even before this Australia's rice production greatly exceeded local needs, and rice exports to Japan have become a major source of foreign currency. Above-average rainfall from the 1950s to the middle 1990s encouraged the expansion of the Riverina rice industry, but its prodigious water use in a practically waterless region began to attract the attention of environmental scientists. These became severely concerned with declining flow in the Snowy River and the lower Murray River.

Although rice growing in Australia is exceedingly efficient and highly profitable due to the cheapness of land, several recent years of severe drought have led many to call for its elimination because of its effects on extremely fragile aquatic ecosystems. Politicians, however, have not made any plan to reduce rice growing in southern Australia.