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Aus ag underwhelmed by Federal Budget

Grain Central March 26, 2025

NFF president David Jochinke.

AUSTRALIAN agriculture is not happy with Treasurer Jim Chalmers‘ latest Federal Budget, citing its lack of investment in rural and regional Australia.

The National Farmers Federation said the Federal Budget underscored how critical the upcoming election will be to deliver the key investments needed to secure and grow Australian agriculture in an increasingly uncertain environment.

NFF president David Jochinke said the budget was a chance for the Federal Government to back Australian agriculture and give the economy a much-needed shot in the arm.

“While we acknowledge some new funding targeting the sector – especially the $3.5-million for a National Food Security Strategy, a key election ask – the budget falls well short of the investment needed to unlock agriculture’s full potential,” Mr Jochinke said.

“Farmers are grappling with major geopolitical, environmental and societal shifts. We need a sharper focus from Government to ensure we keep farmers farming, and keep food affordable for Aussie families.

“As we shift into election gear, the NFF is strapped in and focused on the road ahead. We will make sure agriculture’s needs don’t fall off the back and into a pothole.”

Mr Jochinke said trade was a worthy focus for the agriculture portfolio, and showed the Government was listening to farmers’ increasing concerns about the changing trade environment.

The budget included $6.8 million for international engagement and market access, as well as $20M for a Buy Australian campaign, but the NFF was disappointed the Murray-Darling Basin buybacks were again shrouded in secrecy.

“Yet again, the government hasn’t disclosed what buybacks are costing taxpayers.

“The government’s buyback program is being conducted behind closed doors, with no regard for the communities impacted nor for adhering to corporate best practice,” he said.

“Instead of investing sneaky millions – or billions – into damaging buybacks, we call on the government to redirect the funding into direct measures like eradicating carp or native fish breeding programs.”

Mr Jochinke said agriculture needed significant funding to eradicate pests and weeds.

“We welcome the focus on pest management in the budget, but it’s only a drop in the ocean of what farmers and the environment needs.”

The NFF provided 20 strategic investments to the government that would strengthen agriculture and the Australian economy and Mr Jochinke acknowledged funding for new and existing infrastructure and $2.9M to help fresh produce suppliers better negotiate with supermarkets.

But he said rural and regional areas needed billions more invested in fixing potholed rural roads.

“We need innovative approaches to stimulate regional housing and overcome workforce challenges.

We need major investment in our waterways and in ecosystem services to protect our environment,” Mr Jochinke said.

“With these game-changing investments missing from tonight’s budget, all eyes are now on the election. We need to see all parties step up to the plate and keep Aussie farmers farming.”

The NFF’s election platform can be found here.

Meaningful investment missing: GrainGrowers

GrainGrowers chief executive officer Shona Gawel said while the government had pitched the budget as a responsible platform for prosperity, it had missed the opportunity to deliver on a range of regional investment opportunities that would strengthen grain-growing regions.

“There are positive small steps in this budget in areas including regional housing, low carbon liquid fuels, and childcare, but they fall short of the meaningful investments that the grains industry would like to see,” Ms Gawel said.

GrainGrowers said the increasingly complex global trading environment necessitated a proactive approach to market diversification.

“We welcome the additional funding to support greater economic engagement with India and the provision of technical market access services.

“However, given the current global trade dynamics, further investment and focus in this area is essential.”

Ms Gawel said the challenge of climate change had also been largely ignored.

“Despite the critical challenges climate change poses to agriculture, the Budget included only limited additional resourcing to support sustainability and climate resilience across the sector.”

Ms Gawel said GrainGrowers was disappointed in the lack of additional funding for regional freight routes.

“Regional roads are the backbone of Australia’s supply chains.

“Targeted investment in road infrastructure is essential to support growing freight demands and keep regional communities connected.”

Ms Gawel said GrainGrowers has invested significant funding into well-researched, facts-based reports, with nationally focused solutions to identified issues.

“We take pride in bringing economic and policy based solutions for growers, who deliver consistent economic benefits to the Australian economy.”

She said the size and economic value of the grain industry presents a unique economic and social opportunity, with development potential to drive regional prosperity and national economic growth.

In the last year alone, 22,500 grain farm businesses generated some $33 billion in gross value of production, producing 50 million tonnes of grains, oilseeds, and pulses.

NSW Farmers warns of food production consequences

NSW Farmers president Xavier Martin said poor infrastructure, telecommunications, and biosecurity are just some of the challenges farmers will be left to face alone if federal funding is not increased.

“Billions have been promised to fix roads and rail in the cities, but we don’t know whether there will be any allocated to fix the roads, railways and bridges that are falling apart throughout the bush,” Mr Martin said.

“Meanwhile, our telecommunications are in ruin and farmers are fighting a losing battle against a growing number of biosecurity threats.

“Promises to upgrade the Australian Centre for Disease Preparedness and deliver $11 million to fight pests, weeds and feral animals are only a drop in the ocean, and we need much more funding to deliver a serious biosecurity regime that will defend our industry and assure our food security into the future,” Mr Martin said.

NSW Farmers said funding commitments to keep Rex Airlines afloat and regional bank branches open had come as welcome news for farmers, alongside commitments to drive competition reform, create a National Food Security Strategy and deliver cost of living relief for communities Australia wide.

However, Mr Martin warned more targeted investment in regional, remote and rural communities would be essential to ensure farmers could keep growing the Aussie food and fibre the nation needs.

“Investing in farming communities drives productivity and will deliver food security – and there’s no better investment you can make than that.

“Our government keeps talking about a future made in Australia, but how about a future grown in Australia?”

Vic’s ‘crumbling rural road network’ misses out: VFF

Victorian Farmers Federation president Brett Hosking said while investments into rural childcare facilities and the commitment to develop a National Food Security Strategy were welcome, the budget was underwhelming for Victorian farmers.

“In this election year, we must see major investments into fixing our crumbling rural road network and ensuring there’s adequate resources to manage the renewable energy transition,” Mr Hosking said.

A full breakdown of last night’s Federal Budget can be viewed on the National Farmers’ Federation website here.

 

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