The Productivity Commission is gearing up for a new inquiry into the Future Drought Fund, with consultation expected to commence shortly as water security and climate resilience return to the economic policy agenda.
Productivity Commission Chair Danielle Wood told Queensland Futures Institute (QFI) members and invited guests at the Economic Outlook forum in Brisbane that the Commission was “about to start an inquiry into the Future Drought Fund”.
The Federal Government established the Future Drought Fund in 2019 to help farmers and regional communities become better prepared for drought and climate risks. The fund reached $5 billion in 2024 and supports programs including drought resilience planning, farm business resilience, climate information, research and the adoption of more drought-resilient farming practices.
The Productivity Commission last reviewed the fund in 2023, with its recommendations helping inform the current four-year Drought Resilience Funding Plan, which took effect in 2024. The funding plan is reviewed every four years, including through an independent Productivity Commission inquiry and stakeholder consultation.
Ms Wood said the forthcoming inquiry would consider the effectiveness of measures designed to help farmers prepare for and manage the impacts of drought.
“We’ll be consulting on that shortly once it comes through the door,” she told the forum.
The comments came during a broader discussion about water security, climate risk and the economic consequences of changing weather patterns.
Ms Wood said water policy tended to move rapidly up the political agenda during drought but often received less attention once conditions improved.
She noted that national coordination on water policy had also been limited for an extended period, while the Commonwealth was now seeking to progress further reform.
ANZ Chief Economist Richard Yetsenga told members and invited guests at the QFI forum that businesses exposed to weather and climate conditions were already adapting, particularly in agriculture.
He said the impacts were becoming increasingly practical rather than theoretical, affecting decisions about what crops to plant, how facilities operate and whether workers and customers could safely access businesses during periods of extreme heat.
With much of the state’s agricultural and resources activity dependent on secure water supply, decisions around future infrastructure and drought preparedness will remain important to both regional resilience and Queensland’s broader economic outlook.
The QFI forum, Queensland’s Economic Outlook: Growth, Investment and Reform, featured Ms Wood alongside Mr Yetsenga and Queensland Treasury Corporation’s Dennis Molloy.