Abstract: Inter-annual rainfall variability is a major challenge for sustainable and profitable grazing management in northern Australia. Results are presented from a large, 13 year grazing trial on the relative performance of five stocking strategies in managing for rainfall variability. Strategies are compared in terms of their impacts upon animal production, profitability and pasture condition. The results show that recommended strategies such as moderate stocking, varying stock numbers in response to forage availability and moderate stocking with wet season spelling are not only more sustainable, they are also far more profitable than heavy stocking. It is suggested that managers apply some form of flexible stocking around long term carrying capacity with stock numbers changed in a risk-averse manner as rainfall varies between years. Some form of wet season spelling also appears important to maintain pasture condition.