<p dir="ltr">Policy frameworks supporting sustainable agriculture development are critical in the delivery of the food and fibre needs of a burgeoning global population. A sustainable and resilient Australian agriculture sector is considered essential if it is to capitalise on the world's growing food and fibre needs. However, an increasingly dynamic climate, changing demographics of regional Australia, and economic factors in a global market constrain sustainable development of the agriculture sector. </p><p dir="ltr">Although current policy supports investment in research and development and infrastructure, action to increase market access and competitiveness, as well as a suite of agricultural welfare options, it is flawed in its failure to contemplate the relative readiness of individuals and businesses to act on the interventions of government. </p><p dir="ltr">This paper proposes the adoption of the capability approach to refocus the policy framework to prioritise delivery of outcomes that are valued by individuals and businesses. It proposes a conceptual model that provides a scalable, continuous improvement structure against which policy action can be implemented, monitored, evaluated, and adapted enabling design of more holistic agriculture policy settings that support the sustainable development of the sector and ensure that it can capture the opportunities of future global food and fibre demand.</p>