Treasurer Jaclyn Symes unveiled the Victorian budget for 2026/27, including a 4.7 per cent reduction in agriculture spending.
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Rechelle Zammit
Victoria’s 2026/27 budget outlines a mixed outlook for the agriculture sector, with targeted investments but an overall reduction in funding for farmers.
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Agriculture spending is set to decrease by 4.7 per cent, according to the state opposition, at a time when the sector continues to face rising input costs and global economic uncertainty.
The government has committed $84 million to support farmers and agricultural industries, which included the $62 million that has already been provided in response to the January fires.
The agriculture sector remains a key contributor to the Victorian economy, generating more than $22 billion annually.
Several targeted measures have been included in the budget.
These include $7.6 million for biosecurity initiatives, $5.9 million for farmer and rural mental health and wellbeing programs, and $4.9 million to support electrification and emissions reduction in the agricultural sector.
Additional funding has also been allocated for regional infrastructure that supports farming communities, including $127 million to improve freight rail and $75 million through the Regional Health Infrastructure Fund.
Road infrastructure, which underpins the movement of agricultural goods, is another focus area.
The budget included the already-announced $1.04 billion for road repairs and resurfacing, aimed at maintaining regional transport networks.
At the same time, farmers and regional communities are expected to face increased costs through changes to the emergency services levy, projected to raise $6.8 billion over four years.
Industry groups note that while the budget includes some positive measures, there is limited detail about long-term planning for agriculture.
The Victorian Farmers Federation has criticised elements of the budget.
“The much-hyped $1.04 billion for road repairs and resurfacing is a step in the right direction, but fails to deliver the level of investment required to fix Victoria’s deteriorating road network,” VFF acting president Peter Star said.
Shadow Agriculture Minister Emma Kealy says the budget failed to support regional communities.
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Megan Fisher
Deputy leader of the Nationals and Shadow Agriculture Minister Emma Kealy said the budget failed to adequately support regional communities, pointing to cuts to agriculture funding and increased costs for farmers as evidence that key pressures were not being addressed.
“Farmers are on the front line of global shocks — from rising fuel prices to supply chain disruptions — and this is the worst possible time to be cutting support,” Ms Kealy said.
“Our agricultural sector is critical to the state’s economy and food security, yet this government continues to take it for granted.”
Agriculture and Regional Development Minister Michaela Settle said the government was supporting farmers in the budget.
“We’re backing our farmers through tough times, helping them recover from bushfires and drought, grow their businesses, and protecting them from predators and biosecurity threats,” Ms Settle said.
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