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AAP
AAP
Business
Stephanie Gardiner

Exports and innovation in $600m ag spend

The federal government wants to make it easier for farmers to trade on the export market. (AAP)

The federal government wants to make it easier for farmers to trade on the export market, with its $600 million agriculture budget also bolstering innovation and biosecurity.

The government is spending $267.1 million over four years on a simplified trade system, which is designed to cut the time and cost of exporting goods.

Agriculture Minister David Littleproud said the government wants the agricultural sector to be a $100 billion industry by 2030.

"We're putting our money where our mouth is, supporting new programs so farmers can capitalise on export success, prepare for any tough times ahead, and stand at the centre of prosperity and growth across the nation," Mr Littleproud said on Tuesday.

Northern Australia's biosecurity infrastructure will be boosted by $61.6 million over four years, including measures to address the threat of lumpy skin disease, which can kill livestock.

The budget sets aside $10 million to help states and territories control Japanese encephalitis, as part of its $69 million national plan to combat the virus.

Changes to the tax treatment of Australian Carbon Credit Units are also included. Proceeds will be considered primary production income, which will reduce taxes by $100 million over four years.

"These changes will encourage more primary producers in regional and remote areas to undertake additional carbon abatement and biodiversity stewardship activities," the budget papers said.

The government will expand its patent box to include the agricultural sector, allowing Australian patents in plant breeding and other innovations to be taxed at half the rate applied to large companies.

An extra $84.5 million over four years has been allocated to the Drought Resilience Funding Plan, while a program to support agricultural shows has been extended for two years with $15.4 million.

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