Inconsistencies can commonly be expected between the financial goals of rangeland grazing enterprises and public conservation goals such as maintenance of ground cover to reduce erosion. Where the State wishes to promote conservation outcomes, incentive schemes which reward these outcomes on privately managed grazing lands are an option. We describe one such scheme intended to achieve conservation outcomes and support the development of resilience in the complex adaptive (human–environmental) rangeland system through payments related to measured ground cover. A pilot program in western New South Wales has shown that the practical operation of such a program is uncomplicated and that while several theoretical issues could be further refined there is a rationale for extension of the program based on parameters and processes that are agreed by the participants. We suggest that development of such a scheme should be considered as part of the policy mix related to natural resource management and drought assistance.
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