Governments should redirect funding for drought assistance programs to help farmers better manage risks, according to this draft report. In an assessment of existing drought programs, the Commission found that, when measured against policy objectives relating to self-reliance, preparedness and climate change management, the programs have many shortcomings:

• The Exceptional Circumstances (EC) declaration process is inequitable and divisive

• Subsidies for interest payments and the transport of fodder and livestock are ineffective and can perversely encourage poor farm practices

• Farm households in hardship, who live outside EC declared areas, are not eligible for relief payments.