Unlocking Private Investment in Australian Agriculture and Agricultural Innovation

Summary

This project will deliver practical, evidence-based pathways to increase private and long-term investment in Australian agriculture and agricultural innovation. Building on AgriFutures’ 2021 research, it will clarify how capital currently flows into the sector, why institutional investors remain limited in their participation, and what policy and program settings are needed to attract new, additive capital aligned with national priorities.
The work combines SecondMuse Capital’s market-building and innovative-finance expertise with Tideline’s institutional investment insight, developed through advising super funds, insurers and major asset managers. This ensures the project remains technically rigorous and credible to the investors whose participation will be essential.
Across three phases, we will map capital flows and barriers, examine international models that have successfully mobilised private and institutional capital and analyse how Australian policy, regulatory and communication settings shape investor decisions. Stakeholder engagement is embedded throughout, ensuring all findings reflect real investor priorities and system realities. Insights will be shaped through interviews, workshop discussions and ongoing dialogue with super funds, insurance funds, asset managers, RDCs, DAFF, Treasury, regulators, agribusiness leaders and supply-chain investors.
The project will conclude with practical investment frameworks, model options and policy recommendations, supported by clear guidance materials and workshops for DAFF and RDCs. The aim is to strengthen investment pipelines and support sustained capital flows into Australian agriculture and agricultural innovation.

Program

National Rural Issues

Research Organisation

SecondMuse SG Pte Ltd

Objective Summary

This project will deliver practical, evidence-based pathways to help Australian agriculture and agricultural innovation attract more private and long-term investment. The long-term goal is to strengthen investment pipelines and increase capacity to scale innovation through sustained capital flows. Building on AgriFutures’ 2021 research, it turns earlier insights into actionable models and frameworks that support DAFF priorities and strengthen the national agricultural innovation system. It has three objectives:
Objective 1. Understand capital flows, barriers and opportunities
Build a clear picture of how capital enters Australian agriculture today and where new investment could come from. Focus on the expectations of super funds, insurers, impact investors, corporates and philanthropies, and identify key barriers such as risk perceptions, regulatory and tax constraints, and gaps in the investment pipeline. Draw on relevant international lessons to highlight approaches that could work in Australia.
Objective 2. Identify policy and system factors that influence investment
Analyse how policy design, regulatory settings and broader system barriers shape investor decisions. Develop an investment assessment framework that helps DAFF, AgriFutures and RDCs compare approaches based on their ability to attract new capital, generate public value and support long-term national priorities.
Objective 3. Develop practical models and pathways for attracting private investment
Work with investors, RDCs and DAFF to co-design investment models suited to Australian agriculture, including blended finance structures, pooled funds, sustainability-linked bonds, export-backed offtake arrangements and natural-capital approaches that integrate carbon and regenerative outcomes. Test and refine these options through engagement and provide clear guidance for DAFF and the RDCs.