The federal government will rewrite the Future Drought Fund to better prepare farmers and regional economies for the increasing impacts of climate change and invest almost $500 million over the next eight years to deliver the next phase of the program.
Prime Minister Anthony Albanese, who will make the announcement on Tuesday at Beef in Rockhampton with Agriculture Minister Murray Watt, said it was "vital" that the government supported Australian farmers and producers to be ready for a predicted increase in severe weather impacts.
"By doing the work now our rural and regional communities are not just reacting to events as they unfold, but will have considered plans to make them more resilient to climate change," he said.
Labor has restructured the $5 billion fund and its stated aims in response to a 2023 Productivity Commission report that recommended the FDF shift its focus from short-term drought resilience projects to those targeting the effects of climate change and promising "lasting public benefits", even if that meant fewer, but more targeted programs.
The FDF was created in 2019 by the then Coalition government amid a crippling drought with a start-up capital contribution of almost $4m. There was almost $5m in the fund on March 31 this year.
Making the announcement ahead of next week's Federal Budget, the $519.1m will be used to continue funding, extend and refine existing programs, and develop new initiatives.
The funding will go towards things like existing drought resilience adoption and innovation hubs, along with extending existing farm business resilience and climate services for agriculture programs, as well as a revised resilient landscapes program.
The funding will support drought resilient investments within a new four-year Drought Resilience Funding Plan released in February.
It is believed a further $42m will be committed in the Budget over the next four years to manage the FDF.
Agriculture is predicted to become the nation's next $100b industry by 2030.
Meanwhile, according to the CSIRO, Australia's time in drought is projected to increase over coming years while hot days will become more frequent and hotter.
Senator Watt said very dry conditions were already being experienced in Western Australia and some parts of Tasmania since the switchover from La Nina in September last year to drier conditions.
"Every morning when farmers around the country wake up, put their boots on and go to work, they are one day closer to the next drought," he said.
"I've seen firsthand the great work under the FDF, like trialling new, drought-resistant livestock feed and connecting farmers with the latest scientific advice on reducing drought impacts."
The changes to begin on July 1 will assist farmers develop business plans to manage diversification in a changing climate, increase investment in existing drought hubs and help regional communities manage drought and other climate risks and individuals to obtain leadership training and mentoring.
The Productivity Commission report found the FDF had underspent its $100m annual budget every year since it was set up, with $65m in taxpayer funds allocated in 2020-21, $72m in 2021-22 and $92m in 2022-23.
The restructure also follows last year's National Drought Forum.
The FDF was put into place by
Farmers accessing FDF funds have used the money to trial new, drought-resistant livestock feed and access scientific advice assisting in reducing drought impacts.
Meanwhile, Nationals leader David Littleproud claimed the announcement was "nothing new and something Labor originally voted against".
"The Future Drought Fund, I put in place when I was actually Agriculture Minister. There's a dividend every year of $100m and this government is simply just putting out how they're going to spend that $100m every year for the next 5 years," he said.
"So it's nothing new. It's one in which industry has already been engaged with, and one in which the Labor Party, in fact, actually voted against when I put it up in February 2019. But, ironically, they're now heralding it as new money."
