THE GRAINS Research and Development Corporation (GRDC) reported total equity of more than $1 billion in 2025-26, $143.46 million above budget and $87.08M higher than the year to June 2025

The annual report, presented to the Federal Agriculture Minister Julie Collins on September 23, shows GRDC delivered an $86.5M operating surplus, $63.9M more than budgeted, in 2025-26.

The organisation’s assets continued to be dominated by financial investments, with managed funds totalling $751.63M in 2025-26, $157.6M above budget, and $115.89M higher than the previous year.

GRDC also has $139.89M in “other investments”, about $7.4M above 2024-25.

Its total liabilities sit at $34.6M for 2025-26, down on last year’s result of $46.7M and below the budget estimate of $67.24M.

Total expenditure for 2025-26 was $324M, $30.9M higher than the previous year and $17M higher than budget expectations.

The bulk of this was directed towards research and development, which totalled $258.9M in 2025-26, up $16.4M year-on-year and $6.5M on budget.

However, the actual R&D expenditure was below the $264M figure published for 2025-26 in the Federal Government’s May budget papers.

GRDC’s total revenue for FY2025-26, including levy income, government matching payments and other income, was $410.5M, a decrease of $12.6M from the previous year.

This featured $234.95M from industry contributions, $44.59M above budget forecasts but about $3M below last year.

Government revenue also exceeded expectations, reaching $134.33M against a budget of $109.15M, while remaining in line with the previous year.

Equity, surplus commentary

The report pointed to last season’s strong grain harvest and interest revenue for the higher-than-expected surplus.

“GRDC’s consolidated surplus exceeded the 2025-26 budget by $63.9M,” the report said.

“This variance was primarily driven by higher-than-expected industry contributions and interest revenue…together with revenue from government exceeding budget by $25.2M (23 percent).

“The favourable variance in government revenue reflects higher matching funding associated with the industry contributions.

“Interest revenue also exceeded budget by $8M (40pc), driven by higher cash balances being maintained throughout the year than budgeted.

“The increase in funds was largely attributable to higher-than-expected industry contributions.”

The report said this result “enabled GRDC to invest surplus funds in managed funds and other investments beyond levels assumed in the budget”.

R&D investment rising

The report noted GRDC’s continued increase of equity despite a rise in R&D investment, and said the result “reflect[ed] GRDC’s ongoing commitment to prudent and sustained investment in research, development and extension activities”.

“The increase in equity is primarily attributable to an $82.8M increase in financial assets,” the report said.

“This was largely driven by a $115.9M increase in investments in managed funds, primarily resulting from the investment of cash balances into managed fund portfolios during the year.

“This was partially offset by a decrease in cash and cash equivalents of $38.5M.

“Total liabilities also decreased, mainly due to a $13.5M (44.4 percent) reduction in RD&E payables.

GRDC chair Sharon Starick.

“GRDC continues to actively manage reserves to optimise the impact of long-term RD&E investment.

“Following an independent review, GRDC is adopting a commitments-based reserve policy that better reflects its revenue profile, multi-year RD&E commitments and long-term strategic investment objectives.

“The updated reserves approach provides a forward-looking framework for reserve management and supports GRDC’s long term investment strategy.”

Strong industry performance

GRDC chair Sharon Starick wrote in her report that 2025-26 had demonstrated the resilience of the grains industry, with strong results despite continued pressure from input costs and uncertain weather.

“The year was marked by strong industry performance and continued volatility, including the Middle East crisis and its impact on fuel and fertiliser costs and supply,” Ms Starick wrote.

“Australian grain production reached an estimated 71.9 million tonnes, with the gross value of leviable grains production estimated at $28.5B.”

In 2025-26, Australia exported 50.1 million tonnes of grain, including 11pc of the world’s wheat exports, 30pc of barley, 25pc of oats, 28pc of canola, and 25pc of sorghum.

“These results reflect favourable seasonal conditions in many regions, but also the ongoing capability of growers to adapt, manage input costs and adopt improved practices guided by high-quality research.”

Ms Starick said GRDC’s liquid reserves stood at $814.96M at 30 June 2026.

“[T]he Board supported a prudent and considered approach to drawing them down through disciplined, strategic investment that balances near-term grower needs with higher-risk, higher-reward research capable of delivering transformational gains.

“GRDC remains firmly accountable for delivering RD&E investments that are informed by growers’ needs and priorities and delivering genuine benefits on-farm.

“However, the focus is not just on the ‘here and now’.

“Many of today’s RD&E investments will benefit future generations.”

GRDC managing director Nigel Hart echoed Ms Starick’s comments, writing that performance data showed that the organisation was “making progress against its plan”.

“Growth and new areas represented 39pc of portfolio value, partner co-contributions reached $0.99 for every GRDC dollar invested, and high value procurement activities and multi-party arrangements achieved a weighted average benefit cost ratio of 6.7.

“Most importantly, 82pc of growers reported directly benefiting from RD&E over the past 5 years.

“GRDC’s strong financial position and high level of reserves enabled a prudent and considered drawdown to support this expanded investment program.”

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