About one third of this area is classified as desert. The remaining area is split roughly in half, with a little more than 15 per cent falling in a temperate region between the arid zone and the coastal belt. These areas comprise about 15 per cent of Australia, but a substantial portion is mountain unsuited to agriculture. As a result, less than 10 per cent of the total land area is able to be used for intensive agriculture. These areas support most of the dairy industry, all of the sugar industry, a large part of the fat lamb, horticultural and beef cattle industries and almost all of Aust-ralia s commercial forests.
Water supply is a major problem for the development of Australian resources.
As a result, the total water resource capable of diversion for use in developing rural industries is only 25 per cent of total run-off, a low percentage by world standards. The 30 per cent of Australia suitable for agriculture also contains most of its usable water resources. Drought Land degradation in the form of water and wind erosion is often exacerbated by drought and there is a growing awareness that droughts are a natural occurrence in Australia and that farm management needs to take this into account in its planning rather than relying on government help when drought occurs. A risk management rather than a crisis management approach is now being adopted. Land degradation Environmental factors have played a role in limiting development in Australia.