The latest findings from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) have indicated that the total funding for agriculture research and development (R&D) in Australia is anticipated to reach A$3 billion for the fiscal year 2024-2025. This projected funding amount is consistent with the levels observed in previous years, highlighting Australia’s ongoing commitment to the agricultural sector.

However, a notable shift in the funding structure has been observed: private sector contributions are now surpassing those from the public sector. ABARES estimates that the private sector is expected to contribute around A$1.3 billion (approximately U$0.87 billion) for the 2024-2025 period, while public investment is projected at A$1.2 billion (around U$0.80 billion).

Shift Toward Private Sector R&D

This trend underscores the increasing role of the private sector in driving the nation’s agriculture R&D initiatives, especially as government investment continues to decline. Since 2005-06, private sector funding for agricultural R&D has grown at an annual rate of 4.2%, in contrast to a modest 1.4% for public funding. Meanwhile, both federal and state governments have decreased their agricultural R&D expenditures by an average of 3.0% and 1.9% per year, respectively over the same time period.

Recognition of R&D’s Importance

Dr. Jared Greenville, Executive Director of ABARES, emphasized that the uptick in private investment signifies a growing recognition of the importance of R&D within the agricultural sector. “While public funding still represents a significant portion of agricultural R&D investment, the growth in private sector investment demonstrates a clear understanding of the value of investing in R&D,” he stated. “This investment is vital for agricultural innovation and is a core driver of productivity growth.”

Record Output Forecasts

As Australia’s agricultural sector approaches unprecedented production and export levels, the increased focus from the private sector is particularly notable. ABARES forecasts that the combined output from agriculture, fisheries, and forestry will reach approximately A$106.4 billion (U$71.29 billion) by 2025-26, with agricultural production alone projected to attain A$99.5 billion (U$66.67 billion).

Livestock production is expected to remain robust, driven by strong global and domestic demand. Additionally, the national winter crop is on track to yield 66.3 million tonnes, making it the second-largest harvest on record.

Positive Trends in Farm Income

Farm export values are anticipated to rise, with total exports from agriculture, fisheries, and forestry projected at A$83.9 billion (U$56.21 billion), including A$78.9 billion (U$52.86 billion) from farm exports alone. Furthermore, ABARES estimates that average cash income for broadacre farms will reach A$227,000 (U$152,090) per farm in 2025-26, showcasing strong profitability even amidst regional variations in crop yields.

“Harvesting is well underway across Australia, with notably above-average yields reported in northern New South Wales, Queensland, and Western Australia. However, some regions in southeastern Australia experienced dry spring conditions that negatively impacted yields,” Dr. Greenville added. “These forecasts highlight the ongoing strength, resilience, and global competitiveness of Australia’s agriculture, fisheries, and forestry sectors as they look towards 2026.”