2025 Federal Election Policy Statement

Right now, the Australian dairy industry is at a turning point—one that presents an opportunity to grow dairy production, modernise farm operations and strengthen the regional communities and services they support.  

That’s why in the lead-up to the Federal Election, we’re calling on politicians from across the political spectrum to back our 2025 suite of policy priorities and to invest in Australia’s dairy industry, its dairy farmers, on-farm development and ADF. 

Attracting new farmers and encouraging reinvestment in the sector will lead to greater productivity, enhanced sustainability, and stronger regional economies.  

This will ensure the long-term prosperity of our industry, boost local economies, support regional communities, and strengthen Australia’s food security. 

Specifically, we’re calling on government to invest $399 million across five key areas: 

  1. First farm ownership and family succession support – Ensuring new and young farmers can enter and grow within the industry 
  2. Reinvestment in on-farm productivity and efficiency – Supporting modernisation through advanced technology and sustainability measures 
  3. Water security for dairy farms – Providing long-term solutions for managing scarce water resources 
  4. Workforce development and digital adoption – Equipping dairy operations with skilled workers and the latest farm automation technologies 
  5. Ongoing industry support through ADF – Strengthening the services and support farmers need to build and sustain a thriving dairy sector. 

We share more details on the key areas of investment below. These priorities have been developed with the support of ADF’s policy advisory groups and National Council, and have the endorsement of National Council and our Board. We thank everyone involved for their hard work bringing such an impactful program of investment together.   

This package is about building confidence in dairy’s future. With targeted government support, dairy can continue to be a pillar of Australia’s nutrition, food security and rural economy for generations to come. 

Click here to view the full statement.

2025 Funding Priorities

1. Australian Dairy Farm Fund

The Australian Dairy Farm Fund will support the next generation of dairy farmers. Heavy debt burdens and limited access to capital significantly hinder generational renewal and modernisation within Australia’s dairy industry. This fund provides essential financial assistance to young and successional farmers and new entrants looking to purchase their first farm or take over a family operation.

The fund specifically targets those with limited access to capital or cash reserves. Without this support, generational renewal will continue to fall, farm closures will continue, threatening Australia’s national milk supply and regional economies.

Investment: $120 million over three years

Learn more about the Australian Dairy Farm Fund.

2. Australian Dairy Farm Efficiency Rebate

The Australian Dairy Farmer Efficiency Rebate offers up to a 70% rebate on eligible on-farm reinvestments aimed at improving resilience and adopting sustainable, energy-efficient technologies.

This tackles one of the biggest barriers to dairy farm sustainability and profitability—energy inefficiency. Rising energy costs are a major contributor to reduced sustainability adoption.

Investment: $50 million over three years

Learn more about the Australian Dairy Farm Efficiency Rebate.

3. Dairy Industry Water Offset Program

The Dairy Industry Water Offset Program will provide immediate investment in alternative water sources, infrastructure upgrades, and efficiency measures to help dairy farms adapt to climate variability, manage competing water demands, and ensure long-term industry sustainability.

Investment: $200 million over three years

Learn more about the Dairy Industry Water Offset Program.

4. Dairy Farm Digital Adoption Program

The Dairy Farm Digital Adoption Program is a small grant initiative designed to fast-track the adoption of farm automation and digital solutions in dairy farm operations. Farm automation enhances workforce management, can improve on-farm safety, and helps address critical labour shortages.

Investing in smart farm technology can boost productivity and improve overall farm efficiency, ensuring a more sustainable and resilient dairy sector.

Investment: $15 million over three years

Learn more about the Dairy Farm Digital Adoption Program.

5. Australian Dairy Farmers Industry Services

Australian Dairy Farmers (ADF) is vital for Australia’s 4,100 dairy farmers, providing critical industry-good services. As farmers face rising costs, labour shortages, tightening regulations, environmental pressures, and biosecurity threats, ADF’s services and leadership is more vital than ever.

With farm numbers declining and investment shrinking, strengthening ADF’s capacity to support dairy farmers is crucial to protecting sovereign capability, ensuring national food security, and securing the long-term sustainability of Australian dairy farming.

Investment: $14 million program over three years

Learn more about the Australian Dairy Farmers Industry Services fund.

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