The National Farmers’ Federation has welcomed key measures designed to ease pressure on farmers in the Federal Budget, but has also raised concerns about cuts across key areas
Australia’s Federal Budget has announced key measures which will ease pressure on farmers and strengthen the nation’s food and fibre supply chains.
One of these measures is the Australian Fuel Security and Resilience package, designed to improve domestic fuel and fertiliser resilience with an emphasis on reducing the risk of supply shocks for essential users, including regional and agricultural industries.
The package will deliver $7.5 billion for the establishment of a Fuel and Fertiliser Security Facility to increase supply and storage of fuel and fertiliser by providing financial support including loans, equity, guarantees, insurance and price support.
$3.2 billion will go towards establishing a government-owned Australian Fuel Security Reserve of around one billion litres to increase long term diesel and aviation fuel supply and storage. The Minimum Stockholding Obligation (MSO) will also be lifted to increase Australia’s critical fuel reserves to 50 days.
Another key announcement was $77.1 million committed over four years for the Department of Agriculture, Fisheries and Forestry to sustain agricultural export and trade functions. This funding includes:
- $45.1 million over four years from 2026–27 (and $11.4 million per year ongoing) to continue Australia’s international engagement in agricultural forums and trade standard setting functions
- $23.8 million over four years from 2026–27 (and $6.1 million per year ongoing) to continue to support access to critical global agricultural markets
- $8.2 million in 2026–27 to maintain export regulatory services, with revised cost recovery arrangements for these services deferred to 1 July 2027 in recognition of the disruptions being experienced by farmers and producers due to the conflict in the Middle East.
A further $8.7 million will support the Australian Pesticides and Veterinary Medicines Authority to continue to undertake regulatory activities to control the use of agricultural and veterinary chemicals, while the Commonwealth Scientific and Industrial Research Organisation (CSIRO) will receive a$387.4 million over four years from 2026–27 (and $38.0 million per year ongoing) to support its financial sustainability.
Funding will also be provided for Stage 2 of the part‑life refit of the CSIRO’s Australian Centre for Disease Preparedness.
National Farmers’ Federation president Hamish McIntyre says the Budget comes at a difficult time for Australian agriculture, with farmers continuing to shoulder the impacts of global instability and supply chain disruption from conflict in the Middle East.
“Farmers have been doing it tough, and so has the broader economy,” McIntyre says.
“The conflict in the Middle East has driven fuel and fertiliser costs through the roof and placed pressure on the production of the food and fibre Australians rely on every day.
“When pressure builds on farm businesses, it doesn’t stop at the farm gate. It eventually flows through to all Australians at the checkout. In that context, there are several measures in this Budget that are welcome and reflect the government listening to the concerns the NFF has consistently raised on behalf of farmers.”
The Federal Budget has also announced primary production income would be exempt from the new 30 per cent minimum tax on discretionary trusts.
“There are around 40,000 trusts used in agriculture so these are significant wins for family farm businesses and reflect the case we have consistently put to the Treasurer about how these changes would impact succession,” McIntyre says.
“Family farms are generational businesses built over decades and often represent a family’s life savings and retirement plan. We are pleased the government has listened.”
Another key announcement was the $20,000 instant asset write‑off for small businesses with turnover up to $10 million will be permanently extended from July 1, 2026, which the NFF says provides certainty for businesses looking to invest in equipment and technology.
“We advocated hard for this to become a permanent feature of our tax system,” McIntyre says.
“It’s a simple and effective measure that helps farmers reduce costs and increase their productivity.”
Despite these measures, several grant programs impacting agriculture will have their uncommitted funding reduced, including the Pest and Disease Preparedness and Response, Wine Tourism and Cellar Door, Agriculture and Land Sectors – low emissions future, Accelerated Adoption of Wood Processing Innovation, Support for Regional Trade Events, Empowering Australia – developing Australia’s seaweed farming and other trade‑related grant programs.
