QFF chief executive John Cherry said that agriculture faced the highest emissions costs as a percentage of value for climate change mitigation, with the Treasury report confirming that agriculture "has fewer mitigation options than many other sectors".

"In addition to that, we face one of the largest climate change adaptation challenges and costs, with the Productivity Commission's review of drought programs calling for a 'risk management' approach to future drought events.

"The Productivity Commission has provided a timely reminder that water, natural resource management and climate change programs impact farmers and local communities and need proper integration to deliver expected outcomes.

"As the cost of farmers dealing with climate change will rise, and the challenge for Governments needs to be developing a holistic approach to agricultural policy that recognises all the challenges farming faces into the future."