The Productivity Commission has reviewed the federal Future Drought Fund. 

The Future Drought Fund (FDF) was established in 2019 to provide funding for programs, grants and arrangements that support Australian farmers and associated communities to prepare for, and become more resilient to, the impacts of future droughts.

Following its recent review, the FDF has been urged to prioritise long-term resilience in the face of climate change.

The Productivity Commission found the fund does indeed have the potential to assist the agricultural sector in preparing for drought and adapting to a changing climate. However, the initial focus on short-term programs may hinder long-term improvements, according to the interim report. 

Commissioner Joanne Chong said there is a strong need for changes in the design and strategy of the FDF to fulfil its ambition. 

Her report suggests that isolated short-term initiatives are insufficient for building resilience to drought and recommends better integration and targeting of programs to address longer-term challenges.

Commissioner Malcolm Roberts stressed that the FDF should explicitly recognise the broader challenge of climate change and its impact on communities and agriculture. 

Acknowledging that drought is just one aspect of this challenge, the report calls for a shift towards long-term resilience and a greater emphasis on programs that address the consequences of a changing climate.

To improve the effectiveness of the FDF, the report recommends better articulation of objectives, prioritisation of goals, increased investment in longer-term programs, and improved information sharing. 

It also highlights the importance of engaging Aboriginal and Torres Strait Islander communities and ensuring their inclusion in the fund's decision-making processes.

The Productivity Commission is now seeking feedback and submissions to inform its final report. A full copy of the interim report can be accessed on the Commission's website.