A Goondiwindi farmer could face jail time after allegedly ripping off $20M

A FORMER Australian cotton farmer of the year could face "significant” jail time over allegations he ripped off a Murray-Darling Basin water program to the tune of $20 million.

John Douglas Norman, owner of Norman Farming at Toobeah, west of Goondiwindi, has been charged with six counts of fraud totalling about $20 million.

Norman Farming's chief financial officer Stephen Alan Evans, 53, has been charged with four counts of fraud.

Police allege Mr Norman and Mr Evans doctored receipts between 2010 and 2017 to make standard farming expenses, like contract harvesting, appear to qualify for the Healthy HeadWaters water-use efficiency program.

The Federal Government-funded program, that the Queensland Government administered, is designed to increase the efficiency of water and irrigation projects in the Murray-Darling Basin.

The two appeared in Brisbane Magistrates Court on Tuesday and were granted bail.

Mr Norman was named Australian Cotton Farmer of the Year in 2010 – the year the alleged offending began.

Police opposed Mr Norman's bail, claiming he posed a flight risk due to a history of overseas travel and a net worth of more than $118 million.

But Mr Norman's barrister, Angus Edwards, said Mr Norman had known of the investigation since October 2017 and had not fled.

Mr Norman and Mr Evans surrendered to police on Tuesday morning.

The court heard the alleged fraud made up about 13 per cent of the program's entire budget.

Queensland Police Rural Major and Organised Crime Squad, based out of Toowoomba, raided the property in October last year.

Mr Norman and Mr Evans were both granted bail.

Detective Inspector Mick Dowie said the case involved "terrabytes worth of documents” and had at one stage involved every officer in the squad.

Insp Dowie said the alleged fraud involved doctoring invoices to make everyday expenses appear to be part of six massive projects to increase water efficiency.

The court heard prosecution witnesses included Mr Norman's brother, the company accountant as well as numerous contractors.