Australia's peak farming body has welcomed key measures in tonight's Federal Budget that will ease pressure on farmers and strengthen the nation's food and fibre supply chains, with hard fought wins for farmers in the tax reforms, including primary production income being exempt from a minimum tax on discretionary trusts.
However, the National Farmers' Federation (NFF) raised concerns about cuts to regional infrastructure, connectivity and the Department of Agriculture, Fisheries and Forestry.
NFF President Hamish McIntyre said the Budget landed at a difficult time for Australian agriculture, with farmers and fishers 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," Mr McIntyre said.
"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 NFF welcomed changes ensuring primary production income will be exempt from the new 30% trust tax and confirmation there will be no changes to small business capital gains tax concessions.
"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 impacted succession.
"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."
The NFF welcomed the Government's $10 billion fuel security 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 permanent extension of the instant asset write-off was also welcomed, providing certainty for farm businesses looking to invest in equipment and technology.
"We advocated hard for this to become a permanent feature of our tax system. It's a simple and effective measure that helps farmers reduce costs and increase their productivity."
The NFF also acknowledged the new loss carry-back provisions, an $8.7m investment for the APVMA, along with the previously announced decisions to defer export cost recovery increases, and a $387 million boost to CSIRO and the Australian Centre for Disease Preparedness.
"These are practical investments we've advocated for because they strengthen resilience and innovation and help keep downward pressure on the cost of producing Australian food and fibre."
The NFF also welcomed additional resourcing for implementing EPBC reforms with a focus on establishing new entities (National Environmental Protection Agency and Environmental Information Australia) and improving assessment timeframes.
However, the NFF still requires clarity on how this funding will support the difficult transition agriculture is experiencing under changes to continuous use provisions for agriculture.
"Farmers need clarity and consistency, particularly around changes to continuing use provisions," Mr McIntyre said.
"We'll continue working closely with the Government to ensure these reforms deliver environmental outcomes without creating uncertainty or unnecessary compliance burdens for producers."
However, the NFF has raised concerns about sweeping cuts across key areas impacting agriculture. This includes the Department of Agriculture, pests and weeds, Inland Rail Project and regional connectivity including the Regional Tech Hub.
"There could not be a worse time to pull back investment in supply chains and regional connectivity," Mr McIntyre said.
"The Inland Rail was designed to strengthen supply chains, ease pressure on our highways and reduce the cost of moving produce from farm gate to consumers.
"The Regional Tech Hub helped more than 75 regional people each day in 2025 alone.
"Without continued support for this service, regional Australians may lose a trusted service that has helped thousands navigate major technology changes and stay connected.
"This Budget contains some hard-won wins for agriculture, and we welcome them. We've had the opportunity to be at the centre of some of the most important discussions of this generation, around fuel and fertiliser supply and capability.
"But if Australia is serious about building a stronger, more productive economy, this must be the starting point, not the finish line."
