The federal government’s $53 million program to subsidise on farm connectivity technology like antennas and Wi-Fi extenders is set to flip its generous rebates from tech suppliers to primary producers and narrow its eligible devices for its final round this year.
The Infrastructure department is proposing the changes to give primary producers more choice in where they source the equipment after previously requiring it be bought only from approved suppliers, which were then reimbursed with government grants.
The third round of the On Farm Connectivity Program (OFCP) will also significantly tighten which devices are eligible for the rebates and require proof of use from farmers.
It comes after huge demand for the early rounds, which allowed more devices like remote monitoring and farm management solutions to be claimed, and saw some suppliers bundle in ineligible equipment and still claim a rebate.
The Australian Farm Institute estimates the uptake of digital agriculture could add $20 billion in additional value to the sector. But poor connectivity and upfront costs have limited uptake of technologies, according to the 2021 Regional Telecommunications Review.
The Albanese government launched the OFCP in response to the review. It aims to enable primary producers in agriculture, forestry and/or fisheries to take advantage of digital agriculture by subsidising some of the costs of connectivity devices.
Demand-driven grants of up to 50 per cent of equipment purchases up to $60,000 are offered to incentivise the investment.
After being oversubscribed in the first two rounds, the government topped up funding by $20 million earlier this year in an election commitment that has enabled the third round.
On Thursday, consultation opened for the planned changes to the final round, revealing the planned changes.
The key change means primary producers would need to get pre-approval for their equipment rebate, pay full price and then receive the 50 per cent rebate after delivery and installation.
What equipment is eligible is also being tightened, with round three to restrict the rebates to only technology that directly supports or enhances connectivity, like antennas, gateways, radio transmitters bridges and installation hardware.
Previously, wider requirements allowed rebates for farm management, automation and environment monitoring technologies, while a ‘packaged equipment’ allowance meant things like water tanks or livestock weighing equipment could be claimed when supplied with connectivity devices.
It meant hundreds of rebates worth millions of dollars went to startups supplying things like cattle weighing equipment and remote water monitoring hardware rather than connectivity infrastructure.
The department is also planning to stick with a requirement to geotag high-value equipment for compliance checks and keep the current $4 million income eligibility cap for primary producers, but has sought feedback on both.
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