Future-proofing Australian hay production: global insights for local action

Of droughts and flooding rains — Dorothea Mackellar

The Millennium Drought (2001 to 2009) stands as the most severe and prolonged drought on record for southeast Australia, profoundly impacting the region’s hydrological, ecological, economic, and social systems. Unlike shorter, seasonal droughts, this multi-year event was preceded by a series of relatively dry years, a rapid increase in urban and rural water use (Van Dijk et al 2013) and as such, could be considered the first major Australian drought that interacted significantly with the slower influence of climate change (BOM 2025).

Van Dijk et al (2013) identified that this drought marked a turning point in the national conversation, shifting perspectives from drought as a natural disaster to a recurrent and predictable feature of the Australian landscape. While the consensus was that drought is a repeatable risk, it is the combination of an inability to gauge the duration, severity and spatial extent and the compounding effects of unstable climatic drivers that poses the greatest risk to agricultural productivity and profitability.

In response to the increasing frequency and severity of droughts and the recognition that Australian farm businesses needed to adopt self-reliant approaches to manage climate variability (Australian Government, 2025), the Australian Government established the Future Drought Fund (FDF); an annual investment aimed at building resilience across agriculture, landscapes, and communities. This commitment clearly recognises the enduring nature of drought in Australian agricultural communities and the need to proactively prepare in order to respond and recover (Australian Government 2025b).

At the time of writing this report, south-eastern Australia was suffering the effects of sustained drought while simultaneously the East coast was encountering intermittent, widespread flooding. Subsequently, the demand for feed across these regions increased exponentially as livestock producers attempted to maintain the productive capacity of their herd or flock.

Fodder, broadly defined as hay, straw or silage, is fundamental to Australian farming systems and it is not unrealistic to suggest that “almost every farmer in Australia touches fodder regardless of their farming system” (AFIA 2023). As such, fodder production is a critical tool that remains undervalued, particularly at a national level. While its importance during droughts and floods is well recognised and quantifiable; hay plays a strategic role during favourable seasons by supporting farm profitability, productivity, and operational flexibility, all of which are key factors that build long-term resilience to climate variability.

This report explores global hay production, focusing on the necessity for future climate resilience in Australian agricultural systems.