How can we deal better with climatic risk in agriculture?

Climate variability pervades agriculture in Australia. It generates risk. But we have had to live with high climate variability for a long time. Why haven’t we been able to come to grips with it better? In this paper I suggest that this is because our instruments to assist managers and policy makers in dealing with climatic risk have not evolved in tandem with advances in underpinning scientific and technological capability. The question of the title is considered with respect to farm managers, agribusiness, and policy makers. It is argued all three have significant opportunities to improve the way we deal with climatic risk in agriculture. Most of these opportunities are associated with improved utilisation of modelling and seasonal climate forecasting technologies. At the farm scale, this mainly relates to better linking of relevant instruments with farm managers and advisers. The participatory processes to achieve this are largely known but have not been widely implemented. At the agribusiness and policy scales, an enhanced role for the private sector is envisaged. Business efficiencies will likely be improved as specific climate risk management instruments are developed. There are also new instruments that could be developed in the private sector to support government policy desires for self-reliance by farmers. This will require public-private partnerships for the effective design of such instruments. There is an on-going role for government intervention in provision of a safety net during exceptional climatic circumstances, in strategic investment in research, and in the development of human capital for dealing with climatic risk