Agricultural research and development (R&D) investment in Australia – 2024 25 update

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Key findings

• Total Australian agricultural R&D funding in 2024-25 is expected to be $3.0 billion. This is broadly in line with the real level of funding in 2023-24.
• The public sector remains the largest funder of agricultural R&D, based on updated and revised data.
• Since 2005-06, private agricultural R&D funding has grown at 4.2% per year, compared to 1.4% per year for public funding (in real terms).
• Extension funding continues to fall, with an average annual decline of 5.7% from 2005-06.
• The private sector is forecast to spend around $1.3 billion on agriculture R&D in 2024-25. The public sector is forecast to spend $1.2 billion.
• The Australian Government and State Governments are doing less agricultural R&D, with expenditure dropping respectively by 3.0% and 1.9% each year on average since 2005-06.
   

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What is in this report?

Research and development (R&D) investment is fundamental to the delivery of new technology and knowledge into the Australian agricultural system, and is therefore an important driver of productivity growth, competitiveness and the sustainability of Australian farms.

This report contains updated estimates of funding and expenditure on agricultural R&D to 2024-25 – where ‘funding’ is the dollar amount allocated or invested in R&D, and ‘expenditure’ is the dollar amount spent by those doing the R&D. Compared with previous estimates (to 2023-24) this report contains new data for various sources of R&D funding.

Where data for 2024-25 are not yet available, imputed values have been used. As the 2024-25 estimate is constructed using imputed and partial data it is treated as a ‘forecast’. Other adjustments are made retrospectively, where additional data has become available. These updated data have affected the forecasts made previously for 2023-24 and some earlier years, including the relativities between public and private funding. In addition, the entire series are readjusted to reflect real 2024-25 prices.

While total R&D funding and expenditure estimates should in theory balance, differences in data availability, quality and timing mean they are not exactly the same. The flow of funding through the R&D system is also obscured by time taken for funding processes, as well as leveraging arrangements and collaborative partnerships among research funders and providers.

How are these estimates generated?

ABARES has conducted several previous studies into the value of agricultural R&D investment and the returns this has generated. This update builds on these analyses and uses our latest approach for measuring Australian agricultural R&D. Previous research can be downloaded below.