The Albanese Government is helping Australian farmers in every State and Territory to prepare for future drought and climate change challenges, with farmers making the most of opportunities to innovate and improve their practices.
In the 2024-25 Budget, the Albanese Government announced over $519 million over the next 8 years from the Future Drought Fund (FDF) to help farmers and producers prepare for drought.
This included investment to protect against and adapt to the impacts of climate change, build a more resilient sector and maintain Australia's position as a trusted and reliable trading partner.
The FDF continues to build drought and climate resilience alongside, and in partnership, with a range of stakeholder groups including farmers, industry representatives, farm advisers and community organisations to leverage their expertise and connections for locally led and collaborative action.
Projects across Australia being delivered under the FDF include:
- Technology being trialled in the Northern Territory, by pastoralists to help with things like tracking water and grazing radius of cattle to help producers adopt a more holistic and sustainable approach to building resilience.
- In Western Australia, the South West WA, Northern WA and NT Drought Resilience Adoption and Innovation Hubs - as part of a cross-Hub collaborative project - have been using digital technology to monitor and assess ground cover and forage availability to better manage rangeland conditions across seasons. Through establishment of trial sites, field visits, waterpoint data, drone and remote satellite mapping, geospatial analysis, and on-ground assessments, the Hubs and their delivery partners will contribute data sets to sustainably managing rangelands over the long term.
- In South Australia, cattle farmers are strengthening their herds "From the Ground Up" by participating in projects led by the SA Arid Lands Landscape Board. Trials include GPS cattle tracking, rotational grazing practices and soil moisture monitoring to improve soil health and water holding capacity.
- Agriculture Victoria has been partnering with local farmers, setting up demonstration site trials cross the Mallee to demonstrate integrated groundcover management practices that improve vulnerable soils and build drought resilience of cropping and grazing landscapes.
- In Far North Queensland, the GrazingFutures Livestock Business Resilience program is jointly funded by the FDF and the Miles Government's Drought and Climate Adaptation Program, to help producers plan and implement management strategies for drought and other challenges.
- In Tasmania, and as a response to unseasonably dry conditions in some parts of the state, the Tasmania Drought Resilience Adoption and Innovation Hub launched its Regional Learning Events series.
- In New South Wales, 2024 Nuffield Drought Resilience Scholar Caitlin Herbert is applying her domestic and international drought resilience research to her business and wider community in Eugowra, NSW. She hopes her research looking at innovative drought and climate change risk mitigation in cattle feedlot systems will inform future policy in the industry.
- In the ACT, cattle and mixed livestock producers have participated in the Farm Business Resilience Program, delivered by ACT NRM, tapping into the extensive agricultural and business knowledge of their chosen coach to make better management decisions, resulting in stronger, more sustainable and resilient businesses.
Minister for Agriculture, Fisheries and Forestry, Murray Watt said the diversity of programs being funded reflected the variety of conditions facing Australian farmers and producers.
"The Albanese Government is supporting Aussie agriculture to be prepared for drier conditions and the impacts of climate change in the future," Minister Watt said.
"We're doing this through innovative programs that help farmers develop more resilient management practices and provide tools to withstand dry seasons, both mentally and financially.
"All of these steps are vital to the success of the agriculture industry and go towards reaching Australia's goal of a $100 billion agricultural sector by 2030."
Additional to FDF support for the industry, the Australian Government provides financial support to farmers including:
- Taxation and Farm Management Deposits (FMD) Scheme:
- The Australian Government provides a range of concessional taxation measures, including the FMD Scheme, to help primary producers prepare for and manage the impacts of drought and other events causing income downturns. The FMD Scheme provides a taxation incentive to encourage primary producers to set aside pre-tax income during years of good cash flow for drawing on in future years. Income deposited into an FMD account is tax deductible in the financial year the deposit is made and is included in the primary producer's taxable income in the financial year it is withdrawn.
- As at 31 May 2024, $5.94 billion was held nationally in the FMD Scheme across ~43,000 accounts. Industries with the largest holdings at 31 May 2024 are grains ($1.21 billion), grain-sheep/beef ($1.16 billion), and beef ($1.13 billion).
- Regional Investment Corporation (RIC):
- The Regional Investment Corporation (RIC) delivers the Australian Government's concessional (low interest) loans to the farming sector.
- In the last 6 years, the RIC has delivered $3.37 billion in loans directly to Australian farm businesses and farm-related small businesses).
- Of that, 69% of total settled concessional loans have been towards helping the beef sector ($2.31 billion), along with 1.79 billion to sheep farming and $182 million to support dairy farming.
In addition, the Australian Government has support ready to go for farmers facing dry conditions, regardless of when and where including:
- Farm Household Allowance (FHA):
- The Farm Household Allowance (FHA) is available to farming families in financial hardship. The program provides practical support for eligible farmers through a package of assistance including fortnightly payments and additional allowances such as rent assistance, case support and farm financial assessment. The program also includes a $10,000 activity supplement to develop skills and increase capacity for financial self-reliance.
- Just under $870 million has been spent on the program since 2014, with beef farmers accounting for more than half of the 18,400 FHA recipients.
- Rural Financial Counselling Service (RFCS):
- RFCS is an Australian Government initiative that provides independent financial counselling to farmers, fishers, foresters and small-related enterprises who are experiencing, or at risk of, financial hardship.
- Rural Financial Counsellors are qualified professionals who can provide support that is unique to the farmer's situation, at no cost to the client.
- Farmers experiencing hardship should call the RFCS Network's national information line on 1300 771 741 which will connect them with their nearest RFCS office.
See how the FDF is helping each state and territory here:
- Northern Territory: https://youtu.be/4HvtIP0dg9U?si=TX-v8iBLV7gCQ0YO
- Far North Queensland cattle producers: https://youtu.be/QoeVH8XE6GI?si=lw0Dp73ol1WRBlOI
- Western Australia: Managing Rangelands for Drought Resilience (youtube.com)
- South Australia: Equiwarm V3 Intro1 AU 1080p cut (youtube.com)
- Tasmania: Regional drought events for Tasmanian Farmers - TAS Farm Innovation Hub (tasfarmhub.com.au)
- Victoria: Building drought resilience (youtube.com)
- NSW: Caitlin Herbert 2024 | Nuffield Australia
- ACT: CYPRESS SPRINGS - Future Drought Fund - Farm Business Resilience Coaching Program (youtube.com)
