The private sector has been growing in the share of the total R&D investment in agriculture Photo: SwarmFarm

AGRICULTURAL research and development funding attracted more than $3 billion in 2024-25, according to a recent ABARES report.

The report examined R&D funding and expenditure for 2024-25 across federal, state and territory governments, universities, private investment, and levies paid to R&D corporations.

For 2024-25, the public sector remains the largest funder of agricultural R&D, contributing $1.6B or 53 percent of total funds, compared to $1.42B from private investment.

Of the public funding, $1.03B came from the Federal Government, while state and territory governments contributed $220M and universities provided $340M.

Private-sector funds were split into $990M of funding of own R&D alongside $430M in payments to RDCs, both from levies and voluntary contributions.

The public sector’s share of total R&D funding has continued to decline over recent decades, falling from 67pc of the total in 2005-06, well above 53pc in 2024-25.

ABARES executive director Jared Greenville said private investment in R&D continued to grow at a faster pace than public investment.

“Since 2005-06, real private agricultural R&D funding has grown at 4.2pc per year, compared to 1.4pc per year for public funding,” Dr Greenville said.

“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.”

A breakdown of agricultural R&D funding between 2005-6 showing the steady rise in private investment. Source: ABARES

The ABARES report also looked at actual R&D expenditure as a comparison to allocated or invested funds.

For 2024-25, total agricultural R&D expenditure reached $2.57B with the private spend making up the largest share at $1.33B.

The last almost 20 years has seen private expenditure grow as a share of the total R&D spend with the 2005-6 figures showing public spending at $1.54B compared to the private input of $420M.

The report shows funding for agricultural and advisory services continues to fall, with the 2024-25 figure of $80M a 250pc drop from 2005-06 funding of $200M, an average annual decline of 5.7pc from 2005-06.

Extension funding reached its peak of $240M in 2013-14 before making a steady decline down to the current levels.

Source: ABARES