Introduction
2.1
This chapter considers drought in Australia. Relevant drought policy frameworks are first presented, including an outline of drought support according to the three themes of the Drought Response, Resilience, and Preparedness Plan (the Drought Plan). This is followed by a discussion of how drought is defined and the ways in which the various social, environmental, health and economic impacts of drought are manifested. Subsequent chapters discuss areas where inquiry participants felt that current drought support could be improved.
Drought policy
2.2
For the Australian Government, drought is considered 'just one of a number of hardships that can adversely impact farming businesses'. Accordingly, the policy emphasis with respect to drought is largely one of self-reliance.
2.3
The Australian Government's approach to drought assistance is focussed on preparedness and was set following agreement between Australian, state and territory governments in 2008 and adoption of the Intergovernmental Agreement on National Drought Program Reform in 2013. The Australian Government's current response is guided by two documents—the 2018 National Drought Agreement (NDA) and the 2019 Drought Plan.
2.4
The NDA is the Australian Government's overarching approach to the provision of drought support and assistance. Through the NDA, Australian, state and territory governments focus their drought assistance on encouraging farmers and farming communities to better prepare for drought and manage their business risks, rather than waiting until they are in crisis to offer assistance.
2.5
The Drought Plan sets out the Australian Government's vision for drought management and investment plainly: '[t]o have farm businesses and rural communities that are prepared for, and capable of managing, drought in pursuit of a prosperous and sustainable future'.
Shared responsibilities
2.6
The NDA and the Drought Plan set out a number of roles and responsibilities for Australian, state and territory governments, industry and farm businesses. Under the NDA, the role of the Australian Government includes funding and delivery of the Farm Household Allowance, establishment of the Future Drought Fund, providing continued access to incentives that support farm business risk management and improving and maintaining national, regional and local drought indicator information. There are also a suite of different actions for which there is shared responsibility between Australian, state and territory governments.
Drought support
2.7
There are a range of Australian Government measures in place—totalling more than $10 billion in spending—which use various delivery mechanisms, including income support, financial counselling, taxation measures and concessional loans. Some of these measures provide support that is broader than targeting the impacts of drought alone.
2.8
Under the Drought Plan, the Australian Government's drought response is focussed on three parts:
taking immediate action to support those affected right now by the drought;
supporting the wider communities that depend on farmers for their livelihood; and
supporting long-term resilience and preparedness to withstand drought and encourage farm businesses and rural communities to be prepared for and capable of managing through the next drought.
Reviews
2.9
The Australian Government's drought response has been subject to a number of reviews which have scrutinised overarching policy settings. In addition, the NDA and the Drought Plan establish annual reporting requirements. Numerous reviews have also evaluated specific drought assistance programs and measures. The committee has had regard to these matters during the course of its inquiry.
2.10
Of particular relevance is the National Drought and North Queensland Flood Response and Recovery Agency's review of the Australian Government drought response, completed in October 2020. Concerns raised in the review largely align with evidence received by the committee, including in relation to unclear communication, complex and restrictive eligibility, limited and inconsistent evaluation of drought support and reactive in-drought support.
Definition of drought
2.11
Drought is a natural part of the historical climate variability in Australia. According to the Bureau of Meteorology:
Drought is a prolonged, abnormally dry period when the amount of available water is insufficient to meet our normal use. Drought is not simply low rainfall; if it was, much of inland Australia would be in almost perpetual drought.
2.12
There is no universal definition of drought. Instead, a wide range of definitions for drought exist across different industries. From a meteorological viewpoint drought relates to a deficiency in rainfall, agriculturalists rate the impact on primary industries, hydrologists compare ground water levels and sociologists define it by social expectations and perceptions. These definitions vary in climatic data, time periods, agricultural employment and other measures.
Climate outlook
2.13
The committee commenced this inquiry in November 2019 at a time when Australia was experiencing severe droughts—including the driest November across Australia on record. Furthermore, 2019 was Australia’s warmest and driest calendar year on record, with all jurisdictions recording maximum temperatures in the top five warmest years since records began in 1910.
2.14
At the end of 2019, many communities were facing severe rainfall deficiencies. This contributed to falls in agricultural production and devastating environmental consequences. Despite rainfall returning to some parts of eastern Australia in early 2020, national rainfall was below average with
2019–20 the sixth driest year on record.
2.15
Recent rainfall has improved conditions across many areas. However, the end of La Niña saw April and May 2021 drier than average across much of mainland Australia.
Climate change
2.16
While droughts are normal for Australia, drought conditions are likely to become more frequent, severe and longer due to climate change. Over the last 20 years large changes in Australian climate have been observed, including reductions in average winter rainfall in southern Australia and general increases in temperature. Climate models predict lower rainfall in southern Australia, increased temperatures and more severe droughts and floods.
2.17
The Coordinator-General for Drought's report, released in April 2019, contained an overview of the situation faced by primary producers and communities in drought-affected regions. The report found that, as a consequence of climate change, drought is likely to be more regular, longer in duration and broader in area.
2.18
The emergence of climate change is presenting a number of challenges for agriculture. According to the Australian Bureau of Agricultural and Resource Economics and Sciences:
Droughts, fires and floods are likely to become more disruptive and severe, and agricultural commodity prices and market access may become more volatile.
Trends towards hotter and drier conditions will impact the profitability of agriculture and will drive changes in farming practices and the location of some types of farming. Well-functioning water markets and governance arrangements will remain crucial for irrigated agriculture, regional communities and other stakeholders.
Climate and emissions reductions policies around the world are likely to become more stringent over time, increasing demand for land sector carbon credits from new plantings as well as for reducing greenhouse emissions from livestock and other agricultural activities. Popular ideas of 'agriculture' and 'farming' will increasingly include forestry and markets for environmental services.
The impacts of drought
2.19
According to the Coordinator-General for Drought, drought has a number of significant social, environmental and economic impacts and can seriously affect the productivity and profitability of farms, businesses and communities in drought-affected regions, as well as the health and wellbeing of farmers, their families and communities. These impacts are discussed throughout the report.