We used a participatory approach and a rural livelihoods framework to explore the knowledge and capacity of southeast Queensland graziers to adapt to climate change. After being presented with information on climate change projections, participants identified biophysical and socio-economic opportunities and challenges to adaptation. Graziers identified key opportunities as components of resilience (incremental change), and in many cases were options that they had some knowledge of either from their own region or elsewhere in the grazing industry. The major constraint to (...) adaptation was the lack of financial capital: with low profitability of the industry and high land costs restricting their capacity to diversify and exploit economies of scale. These constraints were exacerbated by the pressure many graziers experienced from the demand for land as a result of urban expansion. While the focus of the workshop was on the impact of climate change and capacity to adapt, many of the issues raised by graziers were pressures not solely related to climate change. Adaptation needs to be considered in light of the appropriate level (resilience–transition–transformation) and spatial scale (field to region) required to tackle the issues identified. Policy needs to support good natural resource management, rural amenity, and food and fibre production close to urban population and markets in the face of urban encroachment. (shrink)