Future Drought Fund
Drought is an enduring feature of the Australian landscape. It has significant economic, social and environmental impacts.
The Future Drought Fund will provide secure, continuous funding for drought resilience initiatives. It will help Australian farms and communities prepare to respond to the impacts of drought.
How it will work
The Fund begins with an initial credit of $3.9 billion. Earnings will be reinvested until the balance reaches $5 billion (expected in 2028-29). From 1 July 2020, $100 million will be made available each year to support Australian farmers and communities. They will use these funds to prepare for, and become resilient to, the effects of inevitable future drought.
This will make agriculture more productive and profitable and enhance the wellbeing of our farming communities and the sustainability of our farming sector.
Drought Resilience Funding Plan
The Drought Resilience Funding Plan will be a high level framework to guide funding decisions for the projects and activities.
The funding plan will be a disallowable instrument. It will align with existing drought policies and strategies. This includes the National Drought Agreement .
The Future Drought Fund Consultative Committee will provide independent expert advice on the draft plan. The Committee has experts in fields that include agricultural economics, climate risk, rural and regional development and natural resource management.
The plan will be reviewed every 4 years. This will ensure it captures emerging priorities and remains future-focused. The Productivity Commission will assess each funding plan before it expires. They will review the plan’s economic, social and environmental outcomes. Their recommendations will be tabled in Parliament.
The plan will inform the design of the programs. The Committee advises the Minister for Drought on whether proposed programs are consistent with the plan. The Fund will support initiatives that enhance the drought resilience of Australian farms and communities by becoming more prepared to respond to the impacts of drought.
This includes investment in research and innovation, research extension and adoption of new and existing technology, improved environmental and natural resource management, infrastructure and community initiatives. This will make agriculture more productive and profitable and enhance the wellbeing of our farming communities and the sustainability of our farming sector.
These funded projects will:
- help farms and communities be more prepared to respond to the impacts of drought
- lift the productivity and profitability of the agriculture sector
- enhance the health and sustainability of Australia’s farming.
The Regional Investment Corporation Board will provide advice, consistent with the Funding Plan, to the Minister for Drought regarding whether to make an arrangement or grant, or enter into an agreement to support a drought resilience project.
Funding will be for projects or activities that enhance the public good by building drought resilience. The types of things that could be funded may include:
- Restoring native vegetation for soil or water regeneration
- Financial and business planning for primary producers to improve ability to manage through lower income periods caused by drought
- Training and information for primary producers in areas such as finance and business planning, managing climate risk and sustainable stock management
- Training and information on local climate variability and advice on climate risk applied to specific locations
- Research in drought resilience
- Improving data on fodder and impacts from drought, including market trends.
Pilot and evaluation
From July 2010 to 30 June 2012, the department worked closely with the WA government to run a pilot of Drought Reform Measures in Western Australia. The pilot provided evidence to support the fund.
Read the evaluation report to find out more.
|Evaluation of the Western Australia Drought Pilot Programs PDF||85||1.7 MB|
|Evaluation of the Western Australia Drought Pilot Programs DOCX||85||1.9 MB|
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