After delaying the vote and criticising the policy, federal Labor passed the Drought Future Fund through the Lower House last night.
The Bill to enact the the Coalition's rural showpiece initiative will now be debated in the Senate.
"The Future Drought Fund will support research, development and innovation to contribute to a sustainable and drought resilient agriculture sector in Australia," Minister for Drought and Water David Littleproud said.
With seed funding of $3.9 billion, the drought fund would grow to $5b over time and pay out $100m a year on preparedness and prevention measures, starting in 2020.
The Coalition rejected Labor's request for 24 hours to review the drought fund so the party could consider the Bill.
After he and several other MPs rose to criticise the fund, Opposition Leader Anthony Albanese said ultimately he wouldn't stand in its way.
Mr Albanese said if the government re-badged the Building Australia Fund as Future Drought Fund there would be no point having Infrastructure Australia as a statutory authority because there would be no money to act on its recommendations.
Labor Agriculture spokesman Joel Fitzgibbon said the Coalition's refusal to allow time to review the Bill, by using its numbers to force a vote, created a "farce" in parliament and proved the government was only interested in wedging the Opposition.
Ballarat MP Catherine King said the fund would not deliver support to farmers who need it now, with the first payout set for mid-2020, and totalling $200m for the full term of government.
Earlier, Mr Albanese had pledged to support "any level" of funding for farmers, but argued it was unclear how the Coalition's drought fund would be spent.
Mr Littleproud rejected these criticisms.
The Building Australia Fund wasn't required under the Coalition government, which had instituted alternate infrastructure funding, and amendments to the legislation ensured Drought Future Fund expenditure would be developed in consultation with an expert panel and governmental oversight.
"That Building Australia Fund hasn't paid a dividend for five years. We've got $100b in infrastructure that we are spending in the regions," Mr Littleproud said.
"The measures would be tabled in the Senate as a disallowable instrument."
After the Bill passed last night, Mr Littleproud forecast the potential for another political dogfight in the Senate.
"If Labor decide to vote against this Bill again it will be one of the lowest acts I've seen in Australian politics. To politicise the misery of Australian farmers would be as low as you could get."
The government's Senate Leader Mathias Cormann said the government had won a mandate for it's drought fund.
"The Future Drought Fund was announced in the 2018-19 MYEFO. We took it to the 2019 election. Labor needs to respect the wishes of Australia's regional farming communities and support this legislation."
The government had failed in a bid to enact its drought fund through the Lower House before the May federal election, but it increased its numbers in the poll and now commands a majority of votes.
The story Drought Future Fund advances, faces final hurdle in Senate first appeared on Farm Online.