THE GRAINS Research and Development Corporation’s total financial resources will hit over $1 billion for the first time, according to figures released in last night’s 2025-26 Federal Budget documents.

The Federal Budget has estimated this figure for 2025-26 will reach $1.027B, up from $966.55M total for 2024-25.

Total net resources for the GRDC encompass industry levies and matching government funds, along with other income sources and the opening balance or cash reserves carried over from the previous year.

Industry levies sit at about 1 percent of the farm-gate value for most crops with the Australian Government matching grower contributions up to 0.5pc of the three-year rolling average of the gross value of production.

Estimated drop in levy income

As a statutory corporation, GRDC operates independently under the Federal Department of Agriculture, Fisheries and Forestry, and sources of additional income include royalties, interest and dividends.

According to the Federal Budget, GRDC is estimated to receive $190.36 million from industry levies in 2025-26, down $13.8M on 2024-25, but above the long-term average.

The Federal Government will be contributing an additional $109.36M, a drop of $17.6M on the previous financial year.

GRDC will receive an estimated $30.63M in revenue from other sources, $19.8M from interest.

Over two-thirds of GRDC’s net resourcing comes from its opening balance or cash reserves, estimated to be $688.4M from July 1.

This is just over $100M more than the 2024-25 actuals of $587.46M as at 1 July 2024.

This figure has been steadily growing at this rate for several years, depending on the size of Australia’s grain production.

Cash reserves in 2019-20 opened at $199.848M, before falling to $165.22M in 2020-21, and making steady gains in 2021-22 to $190.55M and to $299.9M in 2022-23.

Also given the figures are an estimate, the cash reserves actuals have not always been accurately reflected in a Federal Budget, with the 2024-25 actual about $33M higher than the forecast total.

GRDC’s spend on research and development is also expected to increase in 2025-26, according to the Federal Budget.

Although not published as an individual budget item, the document states that there was a planned increase in “R&D investment annual spend from $230M in 2023-24 to $252M in 2025-26”.

“GRDC is currently undertaking a review of its long-term RD&E investment opportunities with the review results to be incorporated in the 2026-27 Portfolio Budget Statement,” the Federal Budget said.

Operating surplus expected

GRDC is estimated to finish with an operating surplus of $23.2M for 2025-26, down from the profit of $68.63M seen in 2024-25.

However, both are strong results, with the 2024-25 Federal Budget predicting a loss of $16.35M for that year, and a larger deficit of $45.98M for 2025-26.

Agency expenses are estimated to reach $306.98M, up from $293.5M in 2024-25, which the Budget has attributed to a result of the higher R&D spend.

“In delivering higher values of R&D expenditure (investment), supplier, employee costs and general support expenses are modestly increasing, largely in line with inflation.”

These figures are expected to be expanded upon when GRDC releases it’s Annual Report, typically delivered to the Minister of DAFF on October 15.