PM says government's policy has industry support, while NFF says more must be done to develop a national drought plan.

If the Flinders Shire Council can scientifically prove the sustainability of an alluvial water source close to its 15 Mile irrigated agriculture project, it predicts 10,000 to 20,000ha of high value crops could be added to Hughenden's economy.

A fruit and vegetable farm near Bowen will receive a $400,000 Coles grant to install cutting-edge technology which will boost productivity by up to 20 per cent and create 15 new jobs.