Australian agriculture is intrinsically linked to the natural environment. Each day, farmers make decisions that influence the long-term health of our landscapes, ecosystems and natural resources, alongside the food and fibre they produce.
The environmental challenges facing Australian agriculture are becoming increasingly complex. Climate variability, more frequent extreme weather events, biodiversity decline, water security, invasive pests and weeds, and changing community expectations are reshaping the way Australian agriculture operates. At the same time, advances in science, technology and land management, together with growing opportunities in natural capital, carbon and biodiversity markets, are creating new ways for farmers to improve both environmental and business outcomes.
Australian farmers have consistently demonstrated their ability to adapt and innovate. Through improved land management, more efficient use of water and inputs, advances in genetics and technology, and the adoption of sustainable farming practices, the sector continues to reduce its environmental footprint while producing more from fewer resources. This progress reflects decades of investment, research and practical experience, and will remain critical as agriculture responds to future environmental and climate challenges.
Environmental outcomes cannot be delivered by farmers alone. To achieve lasting improvements, the National Farmers’ Federation (NFF) requires policy settings that recognise the realities of farming, reward environmental stewardship, and support innovation rather than imposing unnecessary cost and complexity. Environmental regulation, climate policy and market mechanisms must be practical, evidence-based and designed to work alongside the production of food and fibre.
The long-term success of Australian agriculture depends on its ability to innovate and adapt to a changing climate, while maintaining secure access to productive land and water.
Farmers are responsible for managing more than half of Australia’s landmass and play a critical role in protecting soil, water, biodiversity and other natural assets that underpin agricultural productivity.
Land use decisions must recognise agriculture as a nationally significant industry and support the continued growth, productivity and adaptability of farm businesses.
Mineral and energy resources play an important role in the economy, but their development must be balanced with the long-term interests of agricultural producers.
Change is needed in the way the Australian Government administers the Environment Protection and Biodiversity Conservation (EPBC) Act in relation to native vegetation management on farms.
Natural capital refers to the soils, water, native vegetation, biodiversity and other natural assets that support agricultural production and healthy landscapes.
Australian agriculture depends on access to productive land and water resources, supported by a strategy that strengthens the resilience and sustainability of farming systems.
The scale, diversity and variability of agriculture demand that Australian farmers maintain the highest standards of land and animal stewardship.
Secure, reliable and sustainably managed water resources are essential to productive agriculture, thriving rural communities and Australia’s food security.
The NFF is helping shape agriculture’s role in a low-emissions future.
Climate change presents both significant challenges and opportunities for Australian farmers and will be an increasingly determinant factor in shaping the sector’s next decade. The long-term success of Australian agriculture depends on its ability to innovate and adapt to a changing climate, while maintaining secure access to productive land and water.
Australian farmers have always operated in a challenging and varied environment, and their continued prosperity relies on both effective climate action and the protection of agricultural assets. Agricultural land is a strategic national resource that governments must preserve for the future of the sector and the nation.
Australian agriculture is among the lowest emissions intensities of major agricultural exporters in the world, with emissions estimated to be upward of 42% lower than comparable peer nations. A continued transition to a low-emissions economy will require transformation across a number of complementary sectors, especially energy and transport. Policy adjustment and investment in research and development will be crucial to meet this task.
Policies that address climate change must be examined to minimise the risk of perverse outcomes and to deliver equitable outcomes for Australian farmers. Governments and industry service providers must have the tools, systems, and knowledge required to establish an industry baseline and be able to communicate this to farm businesses.
Healthy and productive landscapes are fundamental to the long-term success of Australian agriculture. Farmers are responsible for managing more than half of Australia’s landmass and play a critical role in protecting soil, water, biodiversity and other natural assets that underpin agricultural productivity. Across the country, farmers continue to invest in sustainable land management practices that improve the resilience of their businesses while delivering environmental benefits for the broader community.
Landcare continues to play an important role in supporting sustainable land management across Australia. Through partnerships between farmers, Landcare groups, regional natural resource management organisations, First Nations peoples, researchers and governments, Landcare helps deliver practical, landscape-scale environmental outcomes. Restoring native vegetation, improving soil health, protecting waterways, managing invasive species and strengthening biodiversity all contribute to more resilient farming systems and healthier natural environments.
The NFF supports practical, science-based approaches to sustainable land management that recognise farmers as partners in delivering environmental outcomes. The NFF advocates for continued investment in Landcare, policies that strengthen natural resource management, and initiatives that reward environmental stewardship while supporting productive, profitable and resilient farm businesses.
Agricultural land is one of Australia’s most valuable strategic assets. It underpins the nation’s food and fibre production, supports regional communities and contributes significantly to the Australian economy. As demand for land continues to grow from urban expansion, renewable energy, critical minerals, conservation and carbon projects, careful land use planning is essential to ensure Australia retains the productive land and water resources needed for future generations.
Land use decisions should recognise agriculture as a nationally significant industry and support the continued growth, productivity and adaptability of farm businesses. Governments must ensure planning frameworks are informed by the best available science, protect access to critical natural resources, and enable farmers to adopt modern farming practices and respond to changing markets and technologies. Decisions should also promote the coexistence of agriculture with other land uses wherever possible, while safeguarding Australia’s food security, biosecurity and long-term agricultural productivity.
The NFF advocates for strategic, evidence-based land use planning that recognises the importance of productive agricultural land and respects the rights of farmers and regional communities.
Australia’s mineral and energy resources play an important role in the national economy, but their development must be balanced with the long-term interests of agricultural producers and regional communities. Mining and onshore gas developments have the potential to affect agricultural land, water resources, biosecurity and farm operations, making robust planning, consultation and regulatory frameworks essential.
The NFF supports the responsible coexistence of agriculture with the resources sector, provided farmers’ rights, property interests and business operations are protected. The NFF advocates for transparent decision-making, meaningful engagement with landholders, fair compensation and strong safeguards for land, water and biosecurity to ensure resource developments do not compromise the long-term productivity and sustainability of Australian agriculture.
Native vegetation is an important part of Australia’s agricultural landscape, supporting biodiversity, healthy soils, water quality and the resilience of farm businesses. Farmers have a strong interest in maintaining these environmental values while managing vegetation to support productive agriculture, reduce bushfire risk, control weeds and pests, maintain infrastructure and adopt new farming technologies.
Change is needed in the way the Australian Government administers the Environment Protection and Biodiversity Conservation (EPBC) Act in relation to native vegetation management on farms. Recent changes to agricultural exemptions have increased the need for clear, practical guidance so farmers can confidently understand when routine land management activities may require assessment or approval under national environmental law.
To make native vegetation policy more workable, the Government must develop guidelines and assessment pathways specifically suited to agricultural activities. Farmers need access to accurate mapping, clear definitions, timely advice and streamlined approval processes, supported by dedicated officers who understand farming systems and regional conditions. Commonwealth requirements must also work effectively alongside state and territory laws to reduce duplication, uncertainty and unnecessary costs.
Native vegetation policy should recognise the environmental stewardship already undertaken by farmers and distinguish between significant development and routine activities such as managing regrowth, maintaining firebreaks and infrastructure, controlling weeds and protecting agricultural productivity. Where farmers are expected to conserve native vegetation for the wider public benefit, policy should provide appropriate incentives and fair market-based recognition rather than placing the cost of conservation solely on individual farm businesses.
Natural capital refers to the soils, water, native vegetation, biodiversity and other natural assets that support agricultural production and healthy landscapes. These assets provide essential services including soil fertility, water filtration and retention, pollination, pest management, shade and shelter, carbon storage and resilience to drought and extreme weather. With farmers managing more than half of Australia’s landmass, agriculture has a central role in maintaining and improving the nation’s natural capital.
Natural capital is increasingly being recognised not only as an environmental asset, but as a productive and financial asset within a farm business. Australia’s financial sector is beginning to incorporate natural capital into investment and risk-management decisions. Work is continuing to develop nature-related criteria for agriculture, forestry and land management within the Australian Sustainable Finance Taxonomy, creating a clearer and more consistent basis for directing finance towards positive environmental and agricultural outcomes.
The establishment of an Australian nature repair market will be an important step towards turning environmental improvements into measurable and potentially tradeable financial value. The voluntary national market will enable landholders to undertake approved projects and earn biodiversity certificates representing verified environmental outcomes. Investors may contribute to project costs or purchase certificates, creating a potential new income stream for farmers who protect, restore or enhance biodiversity.
The NFF has long advocated for natural capital markets that recognise farmers’ environmental stewardship and provide fair financial returns for the public benefits they deliver. These markets must remain voluntary, transparent and practical, with manageable participation costs and safeguards for productive agricultural land. They must reward farmers and attract new investment in landscape improvement, rather than transferring the cost of meeting broader public environmental responsibilities onto farm businesses.
The NFF recognises the importance of prime agricultural land to Australia’s long-term food and fibre production. The future success of Australian agriculture depends on continued access to productive land and water resources, supported by a long-term strategy that strengthens the resilience and sustainability of our farming systems. Prime agricultural land is central to achieving this outcome.
Prime agricultural land is a valuable and finite resource that underpins Australia’s capacity to meet growing domestic and global demand for food and fibre, while also delivering important environmental, social and economic benefits. The NFF recognises that identifying prime agricultural land is complex. Land capability is influenced by a range of factors, including soil quality, water availability, climate, access to infrastructure, and advances in technology and innovation. It cannot be defined by cadastral boundaries alone.
A national approach to prime agricultural land should provide a strategic framework to guide land use planning and manage competing land uses, rather than impose prescriptive rules. While protecting productive agricultural land is essential, landholders must retain the flexibility to innovate and make decisions that support the long-term viability of their businesses. The NFF supports a framework that maintains and enhances the long-term productivity of agricultural land, safeguarding Australia’s capacity to produce food and fibre for generations to come.
Sustainable agricultural practices are at the heart of farming in Australia. The scale, diversity and variability of agriculture demand that Australian farmers maintain the highest standards of land and animal stewardship to remain productive and viable.
The Australian agricultural industry’s approach to sustainable agricultural practices is evident across the life cycle of food and fibre production. This extends from land and water management systems, to animal welfare, plant health, safe and nutritious food production, and meeting consumer expectations.
Many of Australia’s agricultural sectors have developed frameworks to guide and monitor the sustainability of industry practices into the future. Other sectors have developed tools which ensure that best practice is used on farms. These industry-led initiatives demonstrate Australia’s commitment to systems of production which prioritise the health of the environment, the welfare of animals and safe and nutritious food.
The Australian Agricultural Sustainability Framework (AASF) is a national industry-led initiative that provides a clear, consistent and credible mechanism for communicating Australia’s agricultural sustainability story. The AASF translates commodity-specific goals into common principles aligned with global frameworks and standards, providing international markets and trade partners with confidence in Australia’s agricultural sustainability credentials. It builds on existing industry frameworks and schemes, offering a clear, consistent, and credible mechanism for communicating Australia’s agricultural sustainability story – domestically and internationally.
The NFF has developed a resource that provides easy links to information on the range of sustainability and environmental programs and resources supported by agricultural industry bodies.
Secure, reliable and sustainably managed water resources are essential to productive agriculture, thriving rural communities and Australia’s food security.
The Murray-Darling Basin plays a vital role in sustaining regional communities, driving agricultural production, and supporting diverse environmental habitats.
The NFF supports a healthy Basin that truly balances the economic, social, and environmental objectives our nation enjoys from our largest river system. The NFF favours the implementation of the Plan, recognising there are a number of improvements which need to be made to make it fairer and more workable. Governments must ensure that the Plan is implemented in a way that minimises adverse social and economic impacts of recovering and using water for the benefit of the environment.
Measures to achieve legislated water recovery targets including 450GL of additional environmental water as required under the Murray-Darling Basin Plan will inflict negative socio-economic impacts on irrigated agricultural production and Basin communities. This is a reality recognised in the 2012 Basin Plan Regulation Impact Statement Addendum to the Water Act 2007. These impacts include increasing water allocation prices, decreasing surface water use in the Southern connected Basin, decreasing annual production of food and fibre, and diminished rural community vitality and prosperity.
The NFF notes that the issue of Indigenous water property rights is gaining some momentum, with several positions espoused by different groups representing Indigenous water interests. While the NFF does not support any particular one of these, this policy is aimed at ensuring that the interests of stock and domestic water users and irrigated agriculture, including Indigenous farming interests, are protected under existing water legislation.
In responding to these findings, it is equally important that changes preserve confidence among farmers and project proponents alike who have made long-term investment decisions based on existing methodology settings.
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