The Burnett Mary region of Queensland is agriculturally and ecologically significant but vulnerable to the impacts of climate change. We have explored the governance of natural resources in the region and the implementation of a state funded flood recovery program post ex-tropical cyclone Oswald (2013). Focus was on the question “will the flood recovery program enhance adaptive capacity in the face of future climate extreme?”. Interviews were conducted with the regional program leaders and members/staff of the participating community and industry organisations, with the purpose of exploring governance arrangements, relationships and capacity before and after the flood event.

Important improvements resulted from the collaborative program implementation. Interactions between stakeholder organisations improved and investment in capacity enhancement has been undertaken by the peak regional body. An evaluation and learning culture has been attempted within the governing system, and Farmers’ knowledge and skills have been enhanced.

Challenges faced by the program implementing agencies related to: (1) the agro-ecosystem (drought after flood and resultant soil loss, farmers ongoing financial hardships), (2) the natural resource governing system (inequitable distribution of program benefits, competing political interests by industry organisations), and (3) factors external to the regional scale such as limited state resources, short program cycle and high level of state influence.

Factors external to the system are the major impediment and require high level state facilitation. Unless such challenges to the delivery of sustainable program outcomes are addressed the adaptive capacity of farmers to manage climate extremes will be limited.