The latest data from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) reported that total agriculture research and development funding for 2024-2025 was expected to reach A$3bn.
This was “broadly in line with the real level of funding observed in the previous period”, said ABARES.
This indicated Australia’s commitment to the agricultural sector, it said.
However, the structure of funding has changed, with the private sector outspending the public sector.
The private sector was forecast to contribute around A$1.3bn (U$0.87bn) in 2024–25, while the public sector was expected to contribute A$1.2bn (U$0.80bn).
The numbers indicated that the private sector was playing an increasingly central role in driving the nation’s agriculture R&D efforts as government investment gradually retreats.
The report noted that this aligned with the long-term trends. Since 2005-06, private agricultural R&D funding has grown at 4.2% annually, compared to 1.4% for public funding.
In contrast, federal and state governments have reduced agricultural R&D spending by an average of 3.0% and 1.9% per year respectively since 2005–06.
Increasing recognition for ag R&D
ABARES Executive Director Dr Jared Greenville said the growth in private investment reflects the private sector’s increasing recognition R&D in the agricultural sector.
“While public funding still makes up the majority of agricultural R&D investment, the private sector’s growth shows that the sector can see the value in investing in R&D. R&D investment is the engine room for agricultural innovation – and the core driver of productivity growth.
“R&D investment enables the delivery of new technology, practices and knowledge into the Australian agricultural system and previous ABARES work has confirmed the importance of R&D to productivity growth of the sector.”
Australia’s strong year for ag
The strong focus from the private sphere comes as Australia’s agricultural sector reaches record production and export levels.
ABARES forecasts said the combined agriculture, fisheries and forestry output will hit A$106.4bn (U$71.29bn) in 2025–26.
Agricultural production alone was expected to reach records of A$99.5bn (U$66.67bn).
In particular, livestock was set to remain strong, supported by global and domestic demand.
The national winter crop is on track to reach 66.3 million tonnes, the second largest on record.
Farm export values are also climbing, with total agriculture, fisheries and forestry exports projected at A$83.9bn (U$56.21bn) with A$78.9bn (U$52.86bn) from farm exports.
Average broadacre farm cash income is expected to reach A$227,000 (U$152,090) per farm in 2025–26, signalling robust profitability despite regional variations in crop yields.
“Harvest is now well underway across all states, with significantly above-average yields reported in northern New South Wales, Queensland and Western Australia. However, some parts of south-east Australia received a dry spring which adversely impacted yields in those areas,” said Greenville.
“These latest forecasts highlight the continued strength, resilience and global competitiveness of Australia’s agriculture, fisheries and forestry sectors as they head into 2026.”
