Investing more, delivering more: Right-sizing RD&E for Australian grain growers
Client: Grain Research & Development Corporation
29/09/2025
ACIL Allen conducted an independent review in late 2024 to determine the appropriate level of research, development and extension (RD&E) investment for the Australian grains sector.
The review found that GRDC investments generate average returns of $6–$9 per dollar invested, delivering $4.8 billion in net benefits to the grains industry between 2018–23. Financial modelling projects similar returns of approximately $8 per additional dollar invested.
Key Recommendations:
ACIL Allen recommends GRDC invest up to an additional $60 million per year over the next decade. This level represents the optimal balance between affordability, expected returns, and the RD&E ecosystem's current capacity.
The review identified three priority areas:
- Increased investment in strategic research to build foundational knowledge and address longer-term challenges
- Enhanced investment in foundational enablers to strengthen research capacity and workforce development
- Development of new partnership models operating over 7–10 year timeframes to address complex industry challenges
The analysis indicates GRDC's current reserve levels present an opportunity to increase RD&E investment while maintaining financial sustainability across variable seasonal and market conditions.