Fair and equitable compensation must be paid to farmers where water abstraction takes place on farmland and results in land sterilisation, crop loss and disturbance, according to the IFA.
The call comes as the Government proposes to overhaul the legislation in this area, under pressure from the European Commission over the absence of controls on water abstractions.
The new laws will place limits on the amounts of water that can be taken rivers, lakes and groundwater sources without registration with the authorities.
However, in a submission to the Oireachtas Committee scrutinising the proposed laws, the IFA said an amendment is needed to better reflect the rights of farmers and makes provision for an equitable package of measures, including compensation where losses arise due to a water abstraction.