Government funding of agriculture during a drought typically falls into three categories: subsidies for farm businesses income supplements for low-income farm families support for better decision-making.
Seasonal conditions vary from drought to normal and above-average rainfall.
Farmers employ production and financial strategies to adapt to changing seasonal and market conditions.
Read more: To help drought-affected farmers, we need to support them in good times as well as bad So why a new round of government handouts for another drought?
Farm subsidies One general form of government drought assistance involves subsidies.
Drought subsidies have the effect of raising the average return from farming.
Subsidies for farm outputs or inputs are a very blunt policy instrument to support farm families facing poverty.
Providing a minimum income support to the self-employed, including farmers but also many small-business people in other parts of the economy, has been a challenge.
Why other small-business families experiencing a downturn in business income – including some who depend on the farm sector – are not eligible for an equivalent to the Farm Household Allowance remains an issue.
Read more: Farmers experiencing drought-related stress need targeted support Better farm business decision-making A number of programs to support better farm plans to manage droughts are funded.