THE Nationals have moved to block taxpayer funding for energy and mining projects on Australia’s best farming land, unveiling a new Bill they say is vital to protect the nation’s food security.
Queensland Senator Matt Canavan last week introduced the Prime Agricultural Land Protection Bill 2026 in the Senate, following the tabling of the same legislation in the House of Representatives last week by NSW Nationals MP Alison Penfold.
The Bill was written by Shadow Minister for Regional Development Anne Webster after a surge of complaints from farmers in her Mallee electorate about the rapid rollout of mining and renewable energy projects on prime agricultural land.
The proposed law would ban Commonwealth funding for mining or energy developments that reduce the productivity of the nation’s best farmland or place it under foreign ownership.
Senator Canavan said the Bill “draws a line in the sand” against projects driven by what he called Labor’s “reckless all-renewables energy agenda”.
“The Nationals in federal government will not support mining or energy projects that diminish Australia’s food security on our prime agricultural land,” he said.
“Transmission lines, wind turbines, solar farms, battery installations or critical minerals mines are unlikely to proceed at all, as they often depend on Commonwealth funding support.
“Take, for instance, renewable energy projects that rely on federal funding mechanisms like the Capacity Investment Scheme and the Clean Energy Finance Corporation.”
Under the proposal, Australia would be mapped and classified into three land tiers: prime agricultural land, other agricultural land and marginal or unviable land.
Commonwealth funding would be banned for any project that reduces the productivity of prime agricultural land, designated as Tier 1, including projects such as transmission lines or mining operations.
Funding would also be blocked for projects that reduce the productivity of other agricultural land, known as Tier 2, or that fail to secure what the legislation calls “social licence” from local communities on Tier 1 and Tier 2 land.
Dr Webster said the Bill was born out of growing anger among farmers in her electorate, where energy and mining developments have sparked fears of forced land use changes and poor rehabilitation outcomes.
“I dedicate the Prime Agricultural Land Protection Bill to Mallee’s farmers who have endured horrible treatment under the Allan and Albanese Labor governments,” she said.
The Mallee MP said she had travelled more than 1500 kilometres across her electorate in recent weeks, holding mobile office meetings in Pyramid Hill, Sea Lake, Lake Boga, Swan Hill, Nhill, Horsham and Natimuk.
“Everywhere residents asked me the same question: what are we doing to protect our best farming land?” she said.
“Well, the Prime Agricultural Land Protection Bill is it.”
Dr Webster said the legislation was based on existing farmland protection laws in New South Wales and Queensland and would use established mapping systems to determine land classifications.
The Bill would also require that farmers are not left worse off if government-backed projects affect their properties.
“The Prime Agricultural Land Bill 2026 will ensure no Commonwealth Government leaves farmers worse off,” she said.
“For example, if a government-backed project cannot proceed without making a family home uninhabitable, farmers will be offered an acceptable substitute home.”
Dr Webster warned that poor rehabilitation outcomes and state government powers to force projects to proceed had left some farmers fearing they could be pushed off their land.
“Our food security, our farmers and regional economies are too important to be thrown under a bus for Labor’s political targets,” she said.
“Prime agricultural land doesn’t just happen. For generations farmers have cultivated, nurtured and preserved that soil. They have protected it from erosion and put their blood, sweat and tears into the ground that feeds and clothes our nation.”
She also warned that food supply pressures were growing amid global instability.
“When farmers are forced off their farms, when irrigation is switched off because Labor has eroded water rights, our food security is at risk,” Dr Webster said.
“During the pandemic supply chains were shaken to their core and now with a conflict in the Middle East more supply shocks are sure to occur. Food security is national security.”
The legislation would also establish a new independent referee, the Commonwealth Agriculture Commissioner, to resolve disputes under the Act and report to the Agriculture Minister.
