2024 federal budget: What to expect for agriculture

Federal Treasurer Jim Chalmers will hand down his third budget on May 14. This is what farm lobby groups are asking for and what the farming sector should expect.

Farmers are pinning their hopes on cash for major regional infrastructure projects and investment in local manufacturing in next month’s federal budget.

But Treasurer Jim Chalmers’ third budget is expected to be laced with restraint after weeks of rhetoric about slowing growth forecasts in China, the United Kingdom and Japan and a weakening of commodity prices at home.

The farm sector is increasingly wary of the Albanese Government’s handling of their interests after the surprise inclusion of a $50 million biosecurity levy in last year’s budget and the scrapping of millions of dollars from regional and rural infrastructure spending when it canned the Coalition’s Building Better Regions fund two years ago.

Federal Treasurer Jim Chalmers will hand down his third budget on May 14. PICTURE: NCA NewsWire / Martin Ollman

Predictions of a surplus are being met with caution, with Dr Chalmers flagging any extra cash would be funnelled into cost of living relief measures such as rent relief, childcare subsidies and energy bills.

The National Farmers’ Federation has called for $1 billion over four years for regional infrastructure, focusing on improving Australia’s international freight supply chains, and $2 billion each for non-flow measures to boost environmental outcomes in the Murray Darling Basin and an expansion of carbon and biodiversity programs.

“Targeted, strategic investment in Australian agriculture offers reliable, well-paying jobs, increases productivity on-farm and across the economy and will play a key role meeting the challenge of producing more food in the face of a changing climate,” NFF president David Jochinke said.

Shadow infrastructure, transport and regional development minister Bridget McKenzie has warned the transport sector of more cuts to their roads and railways.

“Over the first two years, Labor has cancelled, cut and deleted more than $25 billion from our infrastructure budget … the only big announcements this government’s made in the infrastructure portfolio are stadiums and the Suburban Rail Loop in Melbourne to the tune of $2.2 billion,” Senator McKenzie said.

Farmers will also be keeping an eye on the spending arrangements of the trade and home affairs portfolio.

The federal government’s overhaul of the migration system is yet to release its plan for regional visas. Funding for a new approach to supporting regional Australia and changes to the working holiday maker visa could be revealed when Dr Chalmers hands down the budget on May 14.

The future of the Regional Investment Corporation is also up for review, with the budget papers potentially revealing whether it has the support of the federal government to continue providing financial assistance to Australian farm businesses.