.png){kind=small}
Super El Niño Is Coming: Is Your Farm Drought Ready?
Government Drought Funding Is Available - Act Now.
Australia is facing what could become an exceptional El Niño event, and some of the world's leading climate authorities are warning it continues to strengthen.
The Australian Bureau of Meteorology (BOM) has confirmed that a strong El Niño is firmly established and intensifying, with current modelling indicating it could reach very strong levels later this year.
The World Meteorological Organization (WMO) is issuing a similarly urgent warning. Its latest global outlook projects El Niño will strengthen into a very strong event, with a nearly 100% probability of El Niño conditions persisting through February 2027. The WMO has described the developing event as "exceptional" and is encouraging governments, industries, and communities to prepare early.
Now, this doesn't mean Australia will automatically experience drought. El Niño is only one factor influencing our rainfall, and conditions will vary considerably between regions.
But for farming businesses, particularly across parts of Queensland and NSW, the combination of a strengthening El Niño, hotter conditions, and existing soil moisture pressures means this needs to be on your radar now, not when conditions have already deteriorated.
Are You Actually Drought Ready?
We've raised drought preparedness with clients before. But the situation has moved on.
El Niño is here. The forecasts are strengthening. And government drought-preparedness funding and concessional finance are available right now.
The best time to improve water infrastructure, feeding systems, storage, fencing, irrigation efficiency, or other drought-resilience infrastructure is generally before you desperately need it.
The same applies financially.
If conditions deteriorate later this year, decisions about livestock numbers, feed, cropping, capital expenditure, debt, and cash flow become much harder to make under pressure.
Now is the time to look at:
Water security, bores, tanks, and storage
Livestock feeding and management infrastructure
Irrigation and water efficiency
Fodder and feed storage
Fencing and other permanent infrastructure
Cash flow and working capital requirements
Existing debt and available finance facilities
Livestock and cropping strategies
What government assistance may be available to fund appropriate projects
The objective isn't to assume drought is coming.
It's to make sure your farming business is financially and operationally prepared if it does.
Queensland: Up to $50,000 Towards Drought Preparedness
For eligible Queensland primary producers, the Drought Preparedness Grant can provide up to 25% of the cost of eligible permanent capital infrastructure, capped at $50,000.
Importantly, the proposed project must form part of an appropriate Farm Business Resilience Plan and show how the expenditure improves the farm's ability to prepare for, continue operating through, or recover from drought.
Depending on the circumstances, eligible projects can include water, feeding, storage, and other permanent drought-resilience infrastructure.
Funding is limited and remains available for the duration of the annual allocation.
If you're already considering infrastructure that could improve your property's drought resilience, it's worth checking eligibility before committing to the expense.
New South Wales: Up to $500,000 in Drought Resilience Finance
NSW producers have a different support framework.
The Drought Ready and Resilient Fund provides eligible primary producers with access to low-interest loans of up to $500,000 to fund eligible drought preparation, management, and recovery activities.
Depending on the project and eligibility requirements, funding can potentially be used for:
Water and feeding infrastructure
Fencing and shade structures
Soil conservation works
Farm diversification projects
Solar conversion
Other farm infrastructure
There's also a separate Drought Relief Loan of up to $100,000 for eligible producers managing drought conditions, with reduced documentation requirements and no property security requirement.
The larger Drought Ready and Resilient Fund application is more involved. Applicants generally need to provide financial information, a cash-flow budget, details of assets and liabilities, and an appropriate Farm Business Resilience Plan.
Getting the Application Right Matters
This is an area where WLW Group is increasingly becoming involved with clients.
These programs aren't simply a matter of buying equipment and applying for a grant or loan afterwards.
Eligibility needs to be established. The proposed expenditure needs to fit within the relevant program. The application may also need to demonstrate the commercial viability of the farming business while clearly explaining how the proposed investment improves drought resilience.
We're also seeing applications receive greater scrutiny, with requests for additional financial information, cash-flow projections, or further explanation around the proposed project and its eligibility.
In some cases, applications that initially appear straightforward are not being approved without further information or a stronger case being put forward.
This is where getting us involved before you commit to the project can make a significant difference.
We can assist with:
Reviewing eligibility
Considering whether the proposed expenditure fits within the relevant program
Preparing the required financial information and cash-flow forecasts
Assisting with responses where further information or clarification is requested
We can't guarantee that an application will be approved, but we can help ensure the financial and commercial side of your application is properly prepared and supported.
Cash Is Also Part of Being Drought Ready
Drought preparedness also has a side that doesn't involve government funding.
Cash is resilience.
If seasonal conditions worsen, maintaining adequate working capital can be as important as investing in infrastructure.
That means this may not be the year to make a large machinery purchase simply because it produces a tax deduction.
Before committing to significant capital expenditure, consider:
What does this investment actually do for the business?
Does it improve productivity, reduce costs, or genuinely strengthen drought resilience?
What happens to your cash reserves and borrowing capacity after the purchase?
If the season deteriorates, will you wish you still had that cash available?
Tax planning remains important, but commercial decisions should come first.
What Should You Be Doing Now?
We're not suggesting everyone rush out and spend money because an El Niño has been declared.
We're suggesting farming clients use the current warning as an opportunity to review their position before conditions potentially worsen.
If you're already considering infrastructure, particularly around water, feed, storage, irrigation, or drought resilience, now is a sensible time to determine whether government assistance may be available before committing to the project.
Similarly, if your farm is already facing tighter seasonal conditions, we should look ahead at your cash flow, debt capacity, feed position, livestock numbers, cropping decisions, capital expenditure, and tax position rather than waiting until those decisions become urgent.
The question isn't whether anyone can predict exactly what rainfall your farm will receive over the next six months. The question is whether your farming business is ready if the season turns against you.
Talk to Us Before You Spend
If you have a drought-preparedness project in mind, are considering applying for one of the available programs, or simply want to understand what a difficult 2026–27 season could mean for your business, contact the WLW Group team before committing to the expenditure.
We can help assess available funding options, work through the financial requirements, and view the project as part of your broader farm business, cash flow, and tax position.
A conversation now could put you in a much stronger position than reacting once conditions have already deteriorated.
Nijo Antony
Director
