Katrina BRANDON
LAST month, both state and federal governments released the budgets for the upcoming financial year.
Looking at the numbers, agricultural leaders and advocates have said that Australian farmers are getting the short end of the stick and it is nothing more than a ‘slap in the face’.
‘Easier. Safer. More Affordable’ was the theme for the Victorian Budget held in May, which featured many different sectors, including farming. The two key themes for farmers were ‘Support for our Farmers’ and ‘Regional Safety’.
‘Support for our Farmers’ highlighted $84 million in support for Victoria’s farmers and agricultural industries, including $62 million provided in response to the January 2026 bushfires, $5.9 million for programs that support the health, safety and wellbeing of farmers, $5 million to support reduced emissions on farms, $2.2 million to extend the Fox Bounty Program, $146 million as a part of a Drought Support Package and $7.6 million in support for biosecurity.
‘Regional Safety’ highlighted support for the Country Fire Authority, putting $100 million into new tankers, $26.2 million for new stations and upgrades in Mirboo North, Lakes Entrance, Barongarook West, Charlton, Nar Nar Goon, Beveridge, Dereel, Kingston, Woodvale and Yarrambat, $217 million investment into boosting preparedness and an additional $10 million into Fire Rescue Victoria to boost their existing rolling fleet replacement program.
On a federal level, the budget for the Agriculture, Fisheries and Forestry portfolio is “set to deliver” $191.6 million in savings over five years.
Some potential savings include $104.6 million removed from uncommitted grant funding across several agriculture programs, such as Pest and Disease Preparedness and Response, Agriculture and Land Sectors (low emissions future), support for regional trade events, seaweed farming development, various trade-related grant programs and $52 million removed from the Future Drought Fund over four years, with an ongoing reduction of $13 million per year.
National Farmers’ Federation noted that while the Regional Tech Hub’s funds are not being renewed, $191.6 million cut from the Department of Agriculture, Fisheries and Forestry and the scrapped supply chain is unfortunate, there were some wins in the budget.
Wins and losses from gov budgets
WINS in the Budget come from the primary production income that will exempt from 30 per cent tax on discretionary trusts, no changes to small business Capital Gains Tax concessions, instant asset wite-off has been made permanent at $20,000, $387 million for the CSIRO and Australian Centre for Disease Preparedness, $8.7 million for the Australian Pesticides and Veterinary Medicines Authority, and $10 billion fuel package to improve domestic fuel and fertilisesr resilience for agricultural industries.
The $500 million for the Environment Protection and Biodiversity Conservation Act (EPBC) reform was a mix of positive and negative views.
Shadow Minister for Agriculture, Fisheries and Forestry Darren Chester said the budget failed to invest in long-term food security or regional infrastructure, and accused the government of giving up the fight to control feral animals and pest plants.
“Budgets are about choices and the Albanese Government simply didn’t choose our farmers,” Mr Chester said.
“Labor still doesn’t understand the importance of backing Australian farmers and regional communities.
“There’s a $52 million cut to the Future Drought Fund just as farmers battle difficult seasonal conditions in large parts of the country.
“This budget proves agriculture is not a priority for Labor. At a time when global conflict is driving up fertiliser prices, increasing diesel costs and putting pressure on food production around the world, Labor has failed to provide a single new dollar to implement the unfinished National Food Security Strategy.”
The Australian Dairy Farmers (ADF) said a strong agricultural department is critical not only for biosecurity and trade access but also for ensuring that practical agricultural knowledge informs broader economic, climate, water, and industry policy.
ADF has serious concerns about the continued hollowing out of agricultural policy capability and support within government, warning that the 2026-27 Federal Budget continues a long-term trend of hollowing out DAFF and weakening agriculture’s influence in national economic and policy decisions.
Mr Bennett noted an ongoing erosion of the broader policy and industry capability needed to ensure agriculture’s voice is properly represented in central government decision-making, including within Treasury and whole-of-government economic policy.
The Victorian Farmers Federation (VFF) has also shared its concerns, saying that regional Victoria has been left wanting after the Victorian Budget “largely ignored much-needed critical funding and left unanswered questions for the state’s multi-billion dollar agriculture industry”.
VFF Acting President Peter Star said many in the regions would be disappointed at the lack of clarity surrounding key regional issues.
“For many, this Budget will be seen to kick the can down the road during an election year,” Mr Star said.
“Farmers and regional Victorians have been extremely vocal in their opposition to the Emergency Services and Volunteer Fund Levy changes. They’ve been left in the dark about its future, and we’ll continue to call for it to be scrapped entirely.
“The much-hyped $1.04 billion for road repairs and resurfacing is a step in the right direction, but fails to deliver the level of investment required to fix Victoria’s deteriorating road network.
“The Budget has been sold as Victoria’s vision for the future, but it is lacking when it comes to detail for regional Victoria.
“The agriculture industry contributes more than $22 billion annually to the Victorian economy. The government’s $84 million investment to support farmers and agricultural industries must be dramatically increased, and we need a roadmap to grow and build for the future.”
