Victorian Farmers Federation to quit the NFF

The sensational move comes just four months after the state farming organisation also quit six major commodity groups. Read the letter of notice.

The Victorian Farmers Federation will quit the National Farmers’ Federation, saying it is “out of alignment” with the national lobby and cannot support it in its current form.

It comes as the VFF battles to stay afloat amid dwindling membership and financial pressures.

In a letter sent to the national farm lobby on Thursday, VFF president Emma Germano formally provided 12-months’ notice of the VFF’s resignation, effective September 30, 2025 – unless the NFF can change.

“The VFF has repeatedly raised our concerns that our organisation does not support the NFF in its current form,” an email from the VFF Board to its members stated.

“While we acknowledge that a member driven review of ‘Australian Agricultural advocacy’ is currently being undertaken, the strategic plan of the NFF does not meaningfully address the current and future challenges the organisation faces.

“Until those changes are evident, the VFF must take a step back from the NFF to ensure that we are not enabling a system that unfairly burdens our organisation and Victorian farmers.”  

The VFF letter raises several criticisms of the NFF, accusing it of stalling on overhauling its structure and “abdicating its responsibilities” by using “policy by press release” instead of effectively representing farmers.

In addition, the VFF said it was “profoundly disappointed” the NFF Board supported the recent Keep the Sheep rally in Canberra without consulting its members or allowing a vote on the issue.

In June, the VFF resigned from six peak farming industry groups to “focus on its core business activities”.

At the time the VFF said it would remain an NFF member but requested a reduced hardship membership rate of $44,000, down from $220,000, in line with similar arrangements brokered by Cattle Australia, Sheep Producers Australia and Wool Producers Australia, which was granted for 12 months.

National Farmers' Federation chief executive Tony Mahar will leave the organisation in December.

However, the VFF Board revealed it had lost its voting rights under the reduced membership rate and was “restricted from most of the activities that create value for NFF membership”, despite other organisations on similar fees retaining their rights.

In 2022-23, of the 14 state farming organisations and peak commodity groups – including Cotton Australia, WA Farmers and Australian Dairy Farmers – only AgForce Queensland, NSW Farmers, the VFF and Grain Growers were paying the top membership rate of $220,000, with the Horticulture Council on $210,000.

“At the core of our decision lies value for money and the duplication of resources and efforts towards national advocacy,” the VFF email stated.

“We are not suggesting that the peak commodity councils do not have meaningful function and purpose, nor that they should not have a seat at the NFF table. We are resolute that the VFF cannot be relied upon for funding the lion’s share of national advocacy via membership fees to peak councils and the NFF.

“Today’s resignation will not come into play until October 2025, allowing our organisation ample time to strengthen our already extensive working relationships with key federal representatives, or alternatively, withdraw our notice of resignation should we see meaningful change that represents fairness to the Victorian Farmers Federation and its members. We do hope in earnest that the latter can be achieved.”

The VFF’s letter of resignation comes days after NFF chief executive Tony Mahar announced he would leave the organisation after more than a decade of service to take on the role of Energy Infrastructure Commissioner, reporting to federal energy minister Chris Bowen.

The notice of resignation coincides with two days of meetings the national peak farming lobby has held to map out its future amid an increasingly difficult climate for farm advocacy.

Two years ago the NFF commissioned the Australian Farm Institute to review the nation’s “agricultural advocacy ecosystem”, which comprises some 270 organisations identifying as agricultural advocates, and map out a sustainable and strategic path forward.

The AFI’s 18-month project found that farmers needed strong advocacy “now more than ever” as politics became more partisan and social discourse more polarised, but industry advocacy has become more fragmented and competitive.

“Agricultural advocacy in the Australian ecosystem is riddled with issues – and rich in resources. Notably, Australian agriculture holds an immense store of social and human capital, yet these capital stocks are not being used to their full potential,” the report said.

This is not the first time the NFF has dealt with a fall out with its SFOs.

READ THE FULL LETTER

In 2008 the South Australian Farmers Federation left, following in the footsteps of the West Australian Farmers Federation, citing expensive fees and the NFF’s weakening political influence.

It was largely in response to these departures that the NFF came up with its current model of membership subscriptions based on income.

Victorian Farmers Federation president Emma Germano says the VFF will focus on core business activities.

The NFF has been undertaking a “desktop review” of its organisational, financial and governance structures, the six state farmer organisations and major commodity peak industry councils to understand “current state resource allocation”.

The findings of the review are expected to be shared internally this week, and will inform a restructuring of agricultural advocacy “to deliver effective and efficient resource allocation through shared activities such as governance, administration and finance and policy and advocacy”.

The VFF’s financials show it is desperately trying to cut costs, slashing staffing outgoings from $3.86 million in 2022 to $2.95m for the 12 months to September 30, 2023.

Early last year it cashed out the Grains Group’s $9.8m deed poll investment fund so it could pay off $3.1m it had borrowed from Credit Suisse and $1.7m towards $5.15m it had borrowed from Westpac.

The VFF’s Risk, Audit and Finance Committee warned that interest costs tied to its debts and Melbourne headquarters at Farrer House could pose a liquidity risk this year.