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Purpose

– The purpose of this study is to investigate what represents “balanced” policy. Drought conditions create pressures on farmers to store excessive water unfairly, creating unsafe structures in flood, which creates a dual-extreme risk with potentially catastrophic social consequences downstream. “Balanced” policy for socially responsible water storage management that accounts for farmers’ responses to regulations is a key to minimising this risk.

Design/methodology/approach

– This study investigated the problem through application of Oliver’s (1991) strategic response typology to a survey of 202 agribusiness managers in four different institutional environments.

Findings

– Evidence of diverse policy in Australia and results of 202 farmers surveyed suggest that “unbalanced” policy that does not infringe on farmer decision-making power will engender lower resistance, but in a “best balance” environment, stronger resistance is evident.

Originality/value

– The study demonstrates a need to consider more reflexive regulatory mixes for socially responsible water-storage behaviour by agribusiness.

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