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Australia has always been a country of climate extremes. The health of Australian farming will continue to depend on effective management of weather and climate uncertainty. It is increasingly clear that the world is moving towards more rapid and severe climate change. The science is telling us that climate change will be associated with significant warming, which will change optimal planting and harvesting times and the crops, cultivars and animal types that do well in each region. It will reduce water run-off even if there is no general effect on rainfall, and so reduce water available from rivers and streams for irrigation. It is likely to increase the intensity of extreme events: heatwaves and associated bushfires; cyclones in tropical regions; episodes of exceptionally high rainfall; and drough. The impacts of accelerating climate change will intensify the climatic challenge to rural Australia. The scientific evidence is considered in Update Paper five.