Grains Research and Development Corporation claps back at claims it has $1 billion ‘sitting in reserves’

The Grains Research and Development Corporation has clapped back at reports it has $1 billion sitting idle in Federal Treasury, issuing a statement saying that figure is “incorrect” and the true amount is closer to $680 million.

National farm advocacy group Grain Producers Australia made headlines earlier this month when its chief executive Colin Bettles re-ignited a push for 0.06 per cent of GRDC’s farmer levy income to be redirected to Plant Health Australia.

Mr Bettles, whose campaign is supported by GPA’s policy group, said research by the organisation determined the move would generate more than $7 million per year towards biosecurity at a time the nation was under serious threat.

“Seven million is a drop in the ocean compared to what is sitting there ... what is the point in having all of that money sitting there if we get hit by a serious plant pest?” he said.

All Australian growers pay levies to GRDC of 0.9 per cent of the farmgate value of grain sold, with the Federal Government then matching grower contributions up to 0.5 per cent of the three-year rolling average of the gross value of production.

The funds are invested in rural research, development and extension projects for the grains industry, with excess levies often kept as reserves to cover poorer production years.

A statement issued on behalf of the company and approved by key figureheads vehemently defended GRDC’s income and spending, and said reports the farmer-funded group was “sitting on $1 billion” were incorrect.

A GRDC spokeswoman said it could not comment on grower levies directly because it did not have the legislative role to determine or change levies, saying that was a matter for representative organisations to determine in consultation with farmers.

“That ($1b) figure refers to forecast revenue for 2025-26, which includes all government and industry contributions and GRDC’s own-source income, plus cash and investments,” the statement said.

“It is not GRDC’s reserve balance.”

The statement acknowledged GRDC was in a “strong financial position”, with just under $680m in reserves, and defended that total by attributing it to grower-led productivity, innovation and resilience, supported by long-term research.

It also revealed the organisation had $525m committed in its research, development and extension plan for 2023-28, saying the investments had been shaped by grower priorities and were focused on delivering practical, on-farm impact.

“GRDC must take a long-term view to ensure research continues to deliver value through all seasons and conditions,” it said.

“Like growers, GRDC’s income varies from year to year depending on seasonal production and grain prices. Reserves are maintained to ensure continuity and to protect RD&E delivery from seasonal volatility.

“This helps avoid switching investment off and on in response to changing conditions.”

The statement also doubled down on GRDC’s RD&E research, saying it had bolstered its annual spend on this cause from $180m to $245m across the next three years — with that figure indexed, meaning it will increase to $275m in the next four years.

“(This was done) to meet the rising cost of high-quality research and recognition of increasing input costs on farm,” it said.

GRDC determines its investments through regional panels — including its WA-focused Western Region Panel — comprising growers, researchers and advisors, and are subject to open and competitive processes.

Exactly how GRDC manages its future investment approach is also being put under the microscope through an independent expenditure review initiated in September last year, with a plan to finalise that work by the end of the month.

Independent analysis commissioned by GRDC recently revealed that for every $1 invested, growers received an estimated $5-9 in return, while GRDC’s 2025 grower survey revealed 85 per cent of Australian farmers rated GRDC’s investment role highly.