Mr Kernaghan, launching the search to find his successor at Old Parliament House in Canberra yesterday, said rural families were under immense financial, emotional and psychological strain after a decade of drought.

In an emotional plea for help, he said a Howard government policy of withdrawing assistance once off-farm earnings exceeded $400 a week meant farming families were unable to escape debt.

"The policy, as it stands, effectively takes away any hope of farming families … working their way out of debt," Mr Kernaghan said.

"And hope is something that we can give back to farming families.

"Most people agree that if drought relief is to be wound back in any shape or form, it would break the back of the bush."

Mr Rudd said: "Everything that Lee had to say was spot on.

"I grew up on the land, I understand something about what farming communities are going through and, as a result of that, we have got action already under way.

"Drought is now not one in 20 years, it is one in two years at this level of intensity.

"And that's why we've got to look at farm support and also the overall financial assistance package to farmers."

Also in the pipeline is an economic assessment of national drought policy by the Productivity Commission and an assessment of the impact of drought on rural communities by an expert panel.

Mr Rudd did not reveal how the existing drought-relief scheme might be overhauled, but said additional support would be forthcoming.

Agriculture Minister Tony Burke yesterday returned from a visit to northern Western Australia examining the potential for shifting Australia's agriculture to the wetter northern areas.

Critics warn drought relief is serving to slow a process of adjustment to new climatic conditions, with many inefficient farms no longer viable.