Just as dairy farmers naturally look to change as an opportunity to innovate, Australian Dairy Farmers (ADF) this week launched its suite of shovel-ready commitments for the Federal Election.
With Australia’s dairy industry at a critical juncture, ADF calls on the Federal Government to reinvigorate dairy production, help modernise farm operations and strengthen regional dairy communities.
Dairy farming is a cornerstone of regional economies, driving jobs, innovation, and sustainability through modern farming practices.
Despite consumer demand for our nutritious product, farmers are battling declining production, high input costs and operational barriers.
ADF’s 2025 funding priorities provide targeted investment to secure the industry’s future, ensuring farm succession, efficiency, water security, and digital innovation.
With strategic government support, Australian dairy can remain competitive, sustainable, and resilient. This will help to boost national food security and strengthen rural communities.
ADF’s cohesive policy priorities recognise that dairy farming is more than just milk production—it provides essential nutrition, drives jobs, supports service industries, and fosters innovation through new technologies and modern workforce practices.
Attracting new farmers and encouraging reinvestment in the sector will help lead to greater productivity, enhanced sustainability, and stronger regional economies.
As dairy production prospers, so do the towns, businesses, and services that rely on it.
To make this vision a reality, ADF is calling on government to invest $399 million across five election priorities detailed below.
ADF 2025 Election Priorities
Australian Dairy Farm Fund is a $120 million initiative aimed at supporting the next generation of dairy farmers. This fund will help new farmers purchase their first farm, transition into family operations, and invest in modern, sustainable infrastructure.
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.
Australian Dairy Farm Efficiency Rebate offers up to a 70% rebate on eligible on-farm reinvestments aimed at improving resilience and adopting sustainable, energy-efficient technologies. Costed at $50 million program over three years, rebates will be applied to renewable energy systems (solar panels, wind and battery storage systems), energy-efficient equipment and machinery.
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.
Supporting on-farm reinvestment ensures a more competitive, efficient, and future-proof dairy industry.
Dairy Industry Water Offset Program is a $200 million, three-year program dedicated to addressing water scarcity. This is a growing national challenge that poses significant risk to Australian dairy farmers, particularly in the Murray-Darling Basin and other drought-prone regions.
Key initiatives include investing in alternative water sources like aquifers, recharge systems, and recycled water to diversify supply. Strategic water entitlement returns from buybacks to farmers will ensure dairy farms in high-impact regions receive equitable and reliable water access. Developing dairy specific pipelines, pumping stations, and shared infrastructure will reduce losses and boost drought resilience. This program will also fund advanced water capture, storage, high-efficiency irrigation, and smart monitoring.
Dairy Farm Digital Adoption Program is a $15 million small grant initiative designed to fast-track the adoption of farm automation and digital solutions in dairy farm operations. Research shows 70% of dairy farms lack automation. This program provides grants for smart technology adoption, robotic milking, herd monitoring, and digital workforce tools.
These digital tools enhance workforce management, can improve on-farm safety, and help address critical labour shortages.
Australian Dairy Farmers Industry Services is a $14 million three-year program to strengthen ADF’s ability to deliver vital services to dairy farmers, including biosecurity, workforce support, and industry investment initiatives. As farmers face rising costs, labour shortages, tightening regulations, environmental pressures, and biosecurity threats, ADF’s industry good 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.
For more information on our election package, click here.
By Nathan Pope, Policy Manager, Australian Dairy Farmers.