A $5 billion fund to guard Australian farmers against future droughts will be at the heart of the government's plan to tackle barren conditions over the next decade.
The Future Drought Fund will help primary producers, non-government organisations and communities prepare for and respond to the impact of drought.
Prime Minister Scott Morrison will announce the fund, which will be underpinned by an initial $3.9 billion injection before growing to $5 billion in 2028, at Friday's national drought summit in Canberra.
"This funding will support farmers and their local communities when it's not raining. It guarantees drought support for the men and women who drive our nation," Mr Morrison said.
"The challenges of drought vary from farm to farm, district to district, town to town and we continually need to adapt and build capacity - the Future Drought Fund gives us this opportunity."
It will be managed by the existing Future Fund board of guardians, who recently reported a 9.3 per cent return and a $145.8 billion balance in funds for 2017/18.
From 2020, about $100 million per year will be available with payments starting from July that year.
The money will be used to provide community services, research and assist in the adoption of technology.
It will also pay for advice and infrastructure to support long-term sustainability when drought strikes.
"Part of the earning in the fund will be used to fund important water infrastructure and drought resilience projects, while the balance is ploughed back into the fund, so it grows to $5 billion over the next decade," Mr Morrison said.
Political and agricultural industry leaders will discuss the criteria for projects captured by the fund at the summit, sparked by the crippling drought sweeping eastern Australia.
National Farmers' Federation president Fiona Simson said while government support for the current drought was important, farmers would be better served by a holistic plan for dry times.
"I believe it is a well accepted view, from the prime minister down, that we can't afford to continue to be reactive in responding to drought," Ms Simson said.
The NFF also wants a new agreement between commonwealth and state governments to provide a national approach to drought preparation, response and recovery.
The Council of Australian Governments is set to consider a new agreement by the end of the year, underpinning a national drought strategy.
Mr Morrison on Thursday announced a $15 million grant program for regional community groups, as part of $1.8 billion in assistance.
Australian Associated Press
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