Grant opportunity of up to $2 million to support high-impact projects aimed at increasing the resilience of Australian agriculture, farmers, and regional communities to drought.
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What is the Drought Resilience Innovation Challenges Pilot Program (ICPP)?
The Drought Resilience Innovation Challenges Pilot Program (ICPP), delivered through the Future Drought Fund (FDF), is a flagship initiative of the Australian Government designed to accelerate transformative innovations that build drought and climate resilience in agriculture and regional communities.
With up to $20 million in funding available over three years (2025–2028), this competitive grant opportunity is administered by the Community Grants Hub on behalf of the Department of Agriculture, Fisheries and Forestry. It seeks to support bold, collaborative projects that tackle complex, cross-sector drought challenges at scale.
Projects must directly address at least one of the following three national challenge areas:
- Advancing Natural Capital and Biodiversity: Soil health, biodiversity, ecosystem resilience, and sustainable land use practices.
- Innovating Water Management: Smart irrigation, water retention, rehydration, and drought forecasting systems.
- Enhancing Community Resilience: Social cohesion, economic diversification, and drought recovery strategies.
Drought Resilience Innovation Challenges Pilot Program level of support
- Total funding pool: Up to $20 million available from 2025–26 to 2027–28
- Minimum grant amount: No minimum
- Maximum grant amount: Up to $2 million per project
Co-contribution: Co-contribution is not mandatory, but highly encouraged. Applications offering financial (cash) co-contributions will be assessed more favourably in the Value for Money criterion. In-kind contributions are accepted, though they are given less weight than cash contributions.
Drought Resilience Innovation Challenges Pilot Program important dates
- Closing Date: 22 October 2025 at 9:00pm AEDT
- Register your interest with GrantHelper
Drought Resilience Innovation Challenges Pilot Program objectives and outcomes
This grant opportunity aims to fund collaborative, challenge-led projects that develop and deploy innovative, scalable, and high-impact solutions to improve drought and climate resilience in Australian agriculture and regional communities.
Specifically, the objectives are to:
- Increase investment in transformational solutions addressing multi-dimensional challenges across regions and industries.
- Enable the development of potentially transformative technologies, practices, and tools.
- Fast-track access to proven or emerging innovations that support adaptation to drought and climate impacts.
- Demonstrate the effectiveness, scalability, and cost-sustainability of innovative solutions.
- Establish strong consortia that deliver lasting impacts and self-sustaining initiatives.
Activities and expenditure eligible for Drought Resilience Innovation Challenges Pilot Program support
Eligible Activities
To be eligible, projects must:
- Be delivered over a maximum of 2 years and 2 months (2025–26 to 2027–28).
- Request no more than $2 million in grant funding (excluding co-contributions).
- Accelerate an existing innovation that is already at applied research or proven concept stage.
- Directly address at least one of the three Identified Challenges.
- Include a budget for engaging an Independent Innovation Mentor (subject to Commonwealth approval).
- Focus on increasing the adoption of innovative tools, technologies, or practices that improve drought resilience across regions, sectors, or systems.
- Deliver transformational change at a regional or national scale.
- Not be currently receiving funding from another government program.
Examples of eligible projects include:
- Smart irrigation or water storage systems using AI and climate data.
- Mobile applications for drought prediction using real-time soil moisture data.
- Technologies to enhance moisture retention and water recycling.
- Integration of Indigenous knowledge into ecological and agricultural practices.
- Cross-sector collaborations that support scalable, high-impact resilience strategies.
Projects may be delivered across multiple Australian locations, but must be entirely within Australia.
Eligible Expenditure
Grant funding can only be used on direct, project-related costs that are incurred during the grant period and are essential for delivery. These include:
- Independent Innovation Mentor (up to 5% of the grant).
- Salaries and wages for staff delivering project activities (excluding project management).
- Consultants or contractors for technical or expert services.
- Administrative support and overheads related to the project (up to 10%).
- Domestic travel and accommodation (up to 10%).
- Staff training directly linked to outcomes (up to 5%).
- Monitoring, Evaluation and Learning (MEL) activities and reporting (up to 5%).
- Community workshops, focus groups, events, and extension activities.
- Publication, dissemination, or demonstration of results.
- Engagement with Traditional Owners and First Nations stakeholders.
- Educational materials, web development, or hosting for the project.
- Lease or hire of minor equipment or land for trials and demonstrations.
- Purchase of small infrastructure, equipment or assets (< $20,000 per item, capped at 20% of the grant).
- Purchase of larger infrastructure/assets (> $20,000 per item) – must be pre-approved and capped at 20%.
- Government regulatory fees, planning approvals, and access to specialist research infrastructure.
Successful applicants may be asked to verify proposed costs with supporting documentation (e.g. quotes for large items).
Ineligible Expenditure
The grant cannot be used for:
- Local projects with outcomes limited to a single region.
- Innovations that are still in basic research or concept-only stages.
- Vehicle or land purchases.
- General administrative or business operating costs (e.g. rent, utilities, legal/accounting fees).
- ICT equipment not directly related to the project.
- Commercial ventures, start-ups, or profit-driven activities.
- Costs incurred before the grant agreement is signed.
- Overseas travel, unless explicitly approved.
- In-drought assistance or hardship relief.
- Repairs or replacement of existing infrastructure unrelated to the project.
- Donations, sponsorships, feasibility studies, or application preparation costs.
- Long-term maintenance or post-project operational costs.
Projects cannot be funded more than once. If you’ve applied for other funding for the same activities, you must disclose this in your application.
Other Drought Resilience Innovation Challenges Pilot Program important details that you will need to know
Organisations eligible for Drought Resilience Innovation Challenges Pilot Program support
Lead applicants must be Australian-based and able to enter into a legally binding agreement. Eligible entity types include:
- Company
- Cooperative
- Corporate Commonwealth Entity
- Corporate State or Territory Entity
- Non-corporate State or Territory Entity
- Non-corporate State or Territory Statutory Authority
- Incorporated Association
- Indigenous Corporation
- Local Government
- Statutory Entity.
Consortia are mandatory. Members can include otherwise ineligible organisations (e.g., partnerships, sole traders), provided the lead is an eligible entity. Research and Development Corporations can be consortium members but not the lead applicant.
Applicants must also have:
- An Australian Business Number (ABN)
- A bank account with an Australian financial institution
Drought Resilience Innovation Challenges Pilot Program assessment criteria
Applications will be assessed against four weighted criteria:
1. Relevance to Identified Challenges (40%)
- Clearly describe how the project offers a sustainable, innovative, and transformative response to one or more of the Identified Challenges.
- Show the project scope and scale, how the need was identified, and address a development gap in a promising innovation.
2. Project Activities (30%)
- Detail the proposed activities, how they contribute to transformative change, and how they align with the Future Drought Fund’s economic, environmental, and social resilience goals.
- Explain how the technologies or practices are novel, and how they differ from existing approaches.
- Outline the collaborative model, especially involving farmers, First Nations peoples, and regional communities.
- Describe planned communication and extension activities to support public good outcomes.
3. Project Management (15%)
- Submit a Theory of Change and explain the project’s methodology and Monitoring, Evaluation and Learning (MEL) plan.
- Describe the experience and capability of consortium members and nominated Independent Innovation Mentor.
- Detail project governance, risk management, data strategy, IP management, and First Nations engagement protocols where applicable.
4. Value for Money (15%)
- Justify the funding request in terms of public benefit and transformative potential.
- Detail all co-contributions (cash and in-kind) and how they enhance the project.
- Clarify how the project avoids duplication and builds on other government, private or philanthropic initiatives.
How do I get the Drought Resilience Innovation Challenges Pilot Program?
To apply for funding under the Innovation Challenges Pilot Program, applicants must:
- Read the Grant Guidelines Thoroughly: Familiarise yourself with all program requirements before starting your application to ensure your proposal aligns with the program’s objectives and expectations.
- Confirm Eligibility: Only applications that meet all eligibility criteria—including entity type, consortium composition, and project scope—will proceed to assessment.
- Demonstrate Project Delivery Capability: Applicants must be able to deliver the project as proposed, and demonstrate capacity to manage reporting, governance, and implementation requirements.
- Submit a Complete Application: All required attachments and information.
Information to prepare for the Drought Resilience Innovation Challenges Pilot Program application
Your application must include the following attachments (using mandatory templates provided):
- Proposed Project Budget
- Proposed Theory of Change
- Signed Letters of Support from all consortium members (combined into one document)
- Trust deed and variations (if applying as a trustee)
Applying for the Drought Resilience Innovation Challenges Pilot Program
Applications must be submitted online via GrantConnect.
Register your interest with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
Drought Resilience Innovation Challenges Pilot Program resources
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