A new dam on the Palmer River would transform Lakeland into a food bowl of the north, a leading Far North Queensland horticultural grower believes.
Investigations into the viability of the dam at a site 23km southwest of Lakeland are nearing a critical stage with the pending completion and release of a detailed business case in March.
Under the proposed project, water would be transferred via a 12km tunnel from Palmer River Dam to Lakeland Downs and distributed via 65km of buried distribution supply pipelines under pressure to farm gates at Lakeland.
The government funded project assessment, being delivered by Regional Development Australia Tropical North through consultant SMEC, has identified support for an increase in irrigated land around Lakeland from 1650 hectares to 9000 ha, on full take-up of available water.
Cameron Mackay, a member of the Tully based family farming enterprise and the largest banana grower in Australia, the Mackay family, said lack of water and water infrastructure was the main impediment to the development of the Lakeland area.
The Mackays diversified into the Lakeland area in 2012 for protection against natural disasters on the coast.
"We only have enough water to grow 200 ha of high intensity cropping," Mr Mackay said. "Our property has 1700 ha available that would suit cropping, so we are only utilising around one-eighth.
"A significant area has been identified as class one agricultural land that is suitable for high value cropping and its cleared ready to go. It should be growing high value crops and Lakeland should be another food bowl for the north."
Mr Mackay said the new dam was part of long-term nation building, a strategy that had been "tried and proven up the whole east coast of Australia".
"You put a dam and infrastructure in and you build wealth and an economy around it."
Project Director Tony Potter said upon completion of the DBC, considerable work would still be required to identify a potential proponent for the project, provide assistance and guidance in the extensive project approval process, consider funding options and continue stakeholder engagement with all interested parties.
"Should funding be secured to support the proposal and a proponent is identified, the successful proponent would carry out an environmental assessment according to legislative requirements," Mr Potter said.
