The habitat of the bilby's has been greatly affected since European settlement of Australia. Bilbies used to cover two thirds of Australia, but now have been pushed back so that they only live in deserts. This is largely because of the spread of farming.
The introduction of the rabbit, which voraciously eats much of the vegetation the bilby eats, has resulted in reduced food sources. Rabbits also dig burrows which cause problems for the bilby's habitat, as they tend to cause the bilbies to be caved in. The bilby's habitat has also suffered from being trampled on by herds of stock animals.
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