Breeding objectives were constructed for Merino enterprises operating in environments subject to forecast climate changes to 2030. These were derived using gross margins per dry sheep equivalent (DSE) from the GrassGro pasture model at three locations in NSW, Yass, Woolbrook, and Narrandera, and two enterprises, wool and dual purpose. Gross margins were predicted to be lower under forecast climate change, particularly at Narrandera. Simple breeding objectives were derived using GrassGro data, and selection index predictions based on these showed that losses in profitability could mostly be offset, and improved. The GrassGro breeding objectives were strongly correlated with those currently used in the MERINOSELECT genetic evaluation system, although there were differences in outcomes for body weight.