This layer displays the percentage of drought risk by Farm Profit by ABARES AAGIS (Australian Agricultural and Grazing Industry Survey) regions as determined by Australian Bureau of Agricultural and Resource Economics and Sciences.
Average farm profit drought risk has increased in recent years, due to an increase in drought sensitivity within the livestock sector. This largely reflects the impact of an extended run of poor conditions in many livestock farming areas since 2015-16, which has led to reductions in beef cattle and sheep stocking rates, and to hay and grain holdings which, at least in the short-run, increases the drought risk faced by these farms (Hughes et al. 2020). Despite these trends, household income drought risk has remained relatively stable overtime, due largely to an increase in average farm size, which reduces the likelihood of low farm household incomes (see Hughes et al. 2020).