31/01/2025
The Hon. Stephen Jones MP
Assistant Treasurer
Senator The Hon. Katy Gallagher
Minister for Finance
Dear Assistant Treasurer and Minister for Finance,
RE: Farmers for Climate Action 2025-26 Pre-Budget Submission
Farmers for Climate Action (FCA) thanks you for the opportunity to provide a submission for the 2025-26 Budget.
FCA represents farmers, agricultural leaders, and rural Australians who want to see Australia adopt strong climate policies to protect farmers and farming communities. We represent more than 8,400 farmers across Australia and a further 80,000 supporters committed to reducing emissions across the economy.
FCA is pleased to submit eight recommendations for the 2025-26 Federal Budget. These recommendations are supported by crucial insights from our community of Australian farmers and our published reports: Renewable Energy in Farming Communities, Billions in the Bush, Farming Forever, and A Survey of Australian Agricultural Perspectives on a Path to Net Zero.
FCA Recommendations
1. Reduce the up-front capital cost for solar, storage and EVs.
The cost of clean energy and emissions reduction technologies such as solar power, batteries, and electric vehicles are beyond the reach of many farmers. These electrification assets greatly increase productivity while also reducing fossil fuel use on farms. Support to reduce the capital cost of emissions reduction technologies for farmers through subsidies, rebates, tax credits and/or low-interest loans would reduce pay back periods and allow farmers to invest in on-farm renewables and storage. FCA recommends an investment from the Federal Government to reduce the price of renewable energy storage for farmers by co-investing half the cost of an on-farm battery up to $10,000.
2. Enable farmer confidence in the climate-smart tools they need to take action on their farm.
Equipping farmers with the tools they need to reduce emissions is crucial to ensuring they can take action on their farm. The government should invest $800,000 to support the development and implementation of an industry-led initiative to empower Australian farmers to confidently implement pre-existing, tested and reliable tools and systems for measuring emissions, biodiversity and other climate-related metrics. This investment will empower farmers with accurate data to report on their emissions as scope 3 emissions of other supply chain entities and ensure compliance with the government’s Climate-Related Financial Disclosure Laws as they are implemented. Doing so will build confidence in robust reporting frameworks and align with global sustainability standards. This industry-led initiative will enhance market competitiveness and secure the long-term viability of Australia’s agricultural sector in the face of climate change.
3. Fund an update of previous modelling assessing the impact of climate change on Australian farms.
The government should fund the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) to update their modelling on ‘Simulating the effects of climate change on the profitability of Australian Farms’, which is now five years out of date. Modelling the economic impact of climate change on Australian farms is of vital interest for farmers and the agricultural industry. ABARES’ ‘Simulating the effects of climate change on the profitability of Australian farms’, modelling has provided vital evidence that climate change has cost Australians farms an average of $30,000 per annum since 2001. It is increasingly urgent to update this work to obtain a true picture of the impact of climate change on Australian farms.
4. Incentivise farmers to adopt innovative technologies essential to the future of farming.
Emerging technologies to reduce methane, carbon and nitrous oxide emissions on farms – along with nature-based and biodiversity-enhancing solutions – are promising but currently cost-prohibitive for farmers to adopt. Government support for early uptake would help farmers trial these technologies, build an evidence base, expand local markets and encourage local supply chains. Incentives to adopt emerging technologies could be delivered as rebates, subsidies, tax credits or through an instant tax asset write-off program.
5. Invest in rural and regional electricity networks for energy security and participation.
Energy inequity and insecurity remain significant challenges for many regional and rural Australian communities. FCA’s recent advocacy for Western Victoria highlights the widespread issues with ageing infrastructure causing barriers to renewable energy adoption and unreliable access to traditional energy.
To address this, FCA calls for endorsement by the Australian Energy Regulator of network distributor proposals to upgrade outdated Single Wire Earth Return (SWER) lines to three-phase lines. These upgrades will improve grid reliability, enhance energy security for rural and regional communities, and enable greater participation in the transition to clean energy. As well as benefitting regional and rural households, farmers would gain the capacity to integrate on-farm renewable energy projects and feed power back into the grid. FCA recommends that the Government update the Australian Energy Regulator rules to move away from the current population density-based calculations for prioritising electricity network upgrades and toward needs-based calculations that do not disadvantage regional and rural populations.
6. Update policy so farmers are able to use the energy they generate on their own land.
Farm businesses often operate across two or more property titles, and in some regions, legislation currently prevents farmers from transferring energy generated on one part of the property to other areas which are on a different property title. For example, if a farm has solar on a house roof on one title, that electricity cannot be used in a farm shed on another title, even if the properties are side by side. Removing this barrier would transform the return on investment of on-farm renewables, boost uptake of on-farm renewables, and strengthen on-farm energy independence and energy resilience. FCA recommends that the Federal Government work with state governments to implement policy solutions that allow farmers to transfer clean energy they generate between their property titles.
7. Invest in development and extension to support on-farm adoption of innovative solutions to reduce agricultural emissions.
Government must continue to invest in low emissions, net zero, and clean technology solution research, development and extension to ensure that Australian farmers have the best tools and information about how they can sustainably continue feeding the nation and the world. Investment in extension is key to ensure that research is translated into on-farm action. Bridging the extension gap is essential to empower Australian farmers to reduce emissions and implement the groundbreaking research that Australia’s research bodies undertake, including the new Net Zero Emission Cooperative Research Centre of which FCA is a partner.
FCA surveys and research have identified the following technologies that could play a significant role in the decarbonisation of the agriculture sector but require government investment to accelerate research and development and drive early adoption:
- Premise-based renewables and farm electrification,
- Fuel alternatives,
- Technologies to reduce enteric methane emissions,
- Farm-solar (agrivoltaics).
Farmers have highlighted that the key to bridging the gap is trusted local sources such as local agricultural services who can empower and support farmers to interpret research and implement it at a farm level. There must be a coordinated effort from both government and industry to provide clear guidelines, financial incentives, and technical support. FCA recommends Government invest in commodity, farm size and geographic-specific development and extension of research to accelerate on-farm adoption of innovative solutions to reduce agricultural emissions.
8. Financial and fodder drought and flood event support
FCA acknowledges that Australia has always experienced periods of drought and flood. However, climate change is leading to more frequent and intense weather events and driving up the cost of producing food and fibre. FCA recommends that the Future Drought Fund develop a scheme that provides financial and fodder support for farmers to draw on following extreme weather events that exceed historical norms due to the impacts of climate change. This scheme could take the form of a separate fund established as part of the existing Future Drought Fund or could also explore models of co-investment alongside farmers and regional communities.
Farmers for Climate Action would welcome the opportunity to work with Treasury and the Department of Agriculture, Fisheries and Forestry to further cost and implement each of these recommendations.
While climate change is driving rapid change, with the right support we can empower Australian farmers to be more profitable and productive while significantly reducing emissions and enhancing nature. Acting quickly presents enormous economic opportunities for farmers and regional Australians. By investing in secure and resilient solutions now, we can ensure long-term economic prosperity, stronger livelihoods, and a thriving future for our rural communities.
Thank you for the opportunity to provide input to inform your budget process. Please do not hesitate to contact me for more information or to discuss this submission further.
Yours sincerely,
Natalie Collard,
CEO
Farmers for Climate Action
Email: [email protected]
Phone: 1800 491 633
Web: farmersforclimateaction.org.au
Post: FCA C/- Melbourne Connect Co-Working, Lvl 2 700 Swanston Street, Carlton VIC 3053
