The Water for Fodder program will see those eligible purchase water from the South Australian government for $100 a megalitre, compared to the current $900 market price.

Member for Farrer Sussan Ley encouraged farmers to apply for water when it opens on December 9.

She said the volume amount available meant it was "unlikely" to have an impact on the market.

"100 gigalitres is a relatively small volume of the total water traded in our part of the Basin, which means it is unlikely to have a significant impact on the price," she said.

"I would be very disappointed if any speculators or larger corporates were even thinking of getting involved.

"Even if they were, the rules of this program prohibit any farm operation which has received significant water this year from applying."

MIA producer Dean Salvestro has been looking into the program and while he says the conditions are stringent, its a step from the government showing they care.

"I think it's good to give farmers a bit of a positive outlook and see that the Government cares to some extent," he said.

"Whether it makes a difference or not time will tell."

Yet Murray Irrigation Chair Phil Snowden fears the $100 million deal is "nothing but a free kick for South Australia".

"The Federal Government's recent announcement of 100GL of 'new' water for irrigators was music to our ears," Mr Snowden said.

"Sadly, as the fine print is being unveiled, we see it isn't what it's cracked up to be, and does no more than benefit South Australia."

This water must be used to produce fodder or pasture. Farmers can apply for 50ml of water per access licence with a maximum of two applications, and water must be used by June 30, 2020.

Minister for Water Resources and Drought David Littleproud said it will help farmers feed livestock to recover quickly when the drought breaks. For information visit https://www.agriculture.gov.au.