The overriding objective of drought strategies, while always taking into account the welfare of stock, should be to ensure that the farm business survives and that the productive resources of the farm – the soil, the capital, and the genetic merit of the livestock – are managed in such a manner as to allow production to recommence after the drought.

Objectives should be clearly defined both for the drought period and for the post-drought (recovery) period. Recovery from a significant drought may take several years, particularly if debt levels rise substantially or if pastures are depleted and require re-sowing. This Primefact looks at:

• developing your strategies;
• tax treatment of forced livestock sales due to pasture and fodder loss;
• the six most common options;
• advantages and disadvantages of the most common options.