Regional road and rail fix needed in next budget to boost farmer productivity, NFF says

The agriculture sector has grown from $55bn to $80bn since 2018. But it will fall short of its $100bn 2030 goal if there are no improvements in road and rail freight infrastructure, the industry’s peak body says.

National Farmers' Federation president David Jochinke in Canberra. Picture: NewsWire/Martin Ollman

Inefficient and unreliable transportation networks are putting the brakes on Australia’s ability to compete in global agricultural markets, the National Farmers Federation has warned.

The peak body representing the nation’s farmers has urged the Albanese government to invest more in regional infrastructure to fix supply chain issues that are eating away at the margins producers and processors make on exporting products.

In a report to the government ahead of the final budget before the next federal election, the NFF has called on it to invest $1bn to improve regional road and rail networks.

“Australia’s ability to compete in global markets depends on efficient and reliable transportation networks,” the report says. “Delays or inefficiencies in supply chains can result in ­increased costs and a loss of ­market share. This resilience is more important than ever, with an increasing occurrence of natural disasters and other disruptions due to climate change.”

The report said the funding should be allocated to projects that improve freight from major agricultural regions to ports.

Increased efficiency and competitiveness would boost the agriculture sector and benefit rural communities and the ­nation, the NFF said.

The agriculture sector is worth about $80bn a year, up from $55bn in 2018, and the industry has a plan to reach $100bn by 2030. NFF president David Jochinke said the improvement was because of past strategic policies and targeted ­investment. “The growth of the sector is contributing to Australia’s productivity, competitiveness,” he said. “It is abundantly clear – strategic policy and targeted ­investment in Australian agriculture delivers benefits to all Australians, no matter where they live or what they do.”