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Advancing Australia’s Role in Agriculture: How IFAD Membership Strengthens Australian Participation in Sustainable Development
Danai Jedrzejczyk, Curtin University, World Food Forum 2024
Executive Summary
The International Fund for Agricultural Development (IFAD) is a United Nations organisation established in 1977 with the purpose of supporting farming communities in low-middle income countries, offering assistance in building resilient and sustainable agri-food systems. Australia was a founding member of IFAD but withdrew in 2004 due to a reduction in foreign aid budget and a general misalignment with federal government strategic priorities at the time (Australian Government, 2012). Australian withdrawal had a negative impact on Australia’s reputation within the humanitarian development field, and highlighted a reluctance to support rural communities globally. This was a rejection of the international community's joint efforts to build climate resilience, develop strong agrifood systems, and work towards the eradication of poverty worldwide.
Rural communities worldwide continue to be affected by poverty, worsened by climate change and natural disasters. As home to world-renowned agricultural institutions and think-tanks such as the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and Centre for Agricultural Economics and Development (CAED), Australia has proven itself as a country with strong capabilities in the agricultural sector. It is time for this expertise to be shared in order to support rural communities in the Global South, facilitating strong agri-food systems that are climate resilient and have strong outputs in order to sustain communities. As such, this paper recommends that Australia rejoins IFAD.
Problem Identification
The agricultural sector globally faces challenges that impact its health and stability. These range from climate change and natural disasters to a lack of access to information on sustainable farming practices.
Climate challenges are a major problem for the agricultural sector in Australia and abroad. It leads to reduced crop yields, minimises profit from goods, and impacts the livelihood of farmers and community members. It is predicted that global atmospheric temperature will rise 4° degrees Celsius across the 21st century due to greenhouse gas emissions (University Corporation for Atmospheric Research, 2021). In the years between 2001 - 2023, annual farm profits in Australia have reduced by 23% due to fluctuations in seasonal temperatures and weather (Department of Agriculture, Farming and Fisheries, 2025). These fluctuations in seasonal temperatures are a direct result of climate change.
Climate change is synonymous with rising levels of poverty. Rising atmospheric temperatures lead to lower soil fertility, as they change and weaken the soil structure, as well as negatively impact the nutrient cycle (Oishy et. al, 2025). Extreme weather events, including heavy rainfall, are detrimental to soil health, often diluting vital nutrients. Conversely, drier seasons increase the risk of bushfire, as well as add heat stress to livestock. Additionally, increased carbon dioxide levels have the potential to negatively impact crop yields, leading to a shortage in vital resources as well as reduced profits for farmers (NSW Government, nd). Rising temperatures also cause heat stress and dry the soil. This will lead to lower crop yields and reduce output of goods in the seasons to come.
This highlights a direct link between climate change, specifically global warming, and rising levels of poverty. Communities in low-middle income countries often rely on local farms for food supplies, especially those geographically isolated by distance. It is imperative to work multilaterally to cut greenhouse gas emissions that cause global warming. This can be done through improving agricultural infrastructure, offering communities resources in sustainable farming practices as well as support in disaster management.
As a high-income Global North country, Australia is in the financial position to assist in rectifying these issues. Australian agriculture is a prized sector, with Australian horticulture and livestock having a local value of $20 billion AUD in the 2023-24 financial year (Australian Bureau of Statistics, 2024). Australia is a key trading partner for markets globally, and it is imperative that its agricultural sector uses sustainable practices to build resilient agri-food systems, supporting livelihoods nationally.
At the same time, Australia’s foreign aid budget is significantly lower than that of other nations. Australia provides 19 cents out of every $100 of federal government expenditure to international aid, compared to Canada's 38 cents and the United Kingdom's 58 cents (Oxfam, nd). By investing more in foreign aid, Australia will prove a sustained commitment to the Sustainable Development Goals, leveraging its foreign aid budget as a mechanism of increasing its influence regionally. Low-middle income nations require the support of foreign powers to successfully work towards the 2030 Agenda for Sustainable Development yet Australia is not demonstrating a commitment to this goal, hindering the development of agricultural sectors regionally.
Context
The International Fund for Agricultural Development (IFAD) is an agency of the United Nations established in 1977 with the goal of working to improve the lives of those living in rural areas and in the Global South. The fund operates in 92 countries and, with a total of $24 billion USD having been invested into the fund in 2025, IFAD provides funding that supports approximately 78.6 million people worldwide. IFAD has proven to have a significant global outreach and has impacted the lives of many people in the Global South (IFAD, nd). IFAD works to invest in the livelihoods and wellbeing of rural populations globally. It offers opportunities for community and agricultural development through supplying information regarding disaster response and meteorology, researching technological advancements, and investing in rural farming systems. These projects promote sustainability and climate resilience. (Green Climate Fund, nd).
Australia was a founding member of IFAD and withdrew in 2004 due to IFAD not aligning with the “Asia-first, not Asia only” policy that the Australian Government held at the time. This policy extended to the strengthening of ties between Australia and Commonwealth nations, and excluded nations within the Americas and Africa (National Archives of Australia, nd). While the Australian Government historically has emphasised the need to support economic partnerships and bilateral relations across Asia, it has not considered humanitarian aid to be a priority of Australia’s foreign policy. This was a contributory factor in Australia withdrawing from IFAD in 2004.
Benefits of Australia rejoining IFAD
Below, three potential impacts of Australia rejoining IFAD have been identified:
Australia’s role in the Asia-Pacific increases
Australia is a major actor in the Asia-Pacific region. Its strategic geographic position enables participation in multilateral organisations such as ASEAN, Quad and APEC, facilitating strong ties across the region. By rejoining IFAD, Australia reaffirms its position as a country committed to sustainable development. IFAD enables Australia to be involved in capacity-building initiatives, serving to provide communities with the tools to build climate resilient agri-food systems. This demonstrates that Australia is a nation committed to respecting traditional practices and the autonomy of communities globally. It positions Australia as a leading partner in the agricultural sector, supporting strong participation in multilateral discussion on issues impacting agri-food systems.
Furthermore, some of Australia’s closest neighbours are located in the Pacific, a region deeply impacted by climate change with sea levels and ocean temperatures rising at an unprecedented rate, impacting fishing (World Meteorological Organization, 2024). Australia already maintains strong connections with the Pacific Islands, one example being the facilitation of smooth visa pathways for entry into Australia via the Pacific Australia Mobility Scheme (PALM) and Australia-Tuvalu Falepili Union. The Australia-Tuvalu Falepili Union recognises that if the impacts of climate change renders the nation inhabitable due to sea levels rising, that Tuvalu remains a sovereign nation (Department of Foreign Affairs and Trade, 2024). Australia’s strong ties to the Pacific include a commitment to provide aid in times of crisis. Rejoining IFAD will further strengthen Australia’s support and commitment to our Pacific neighbours. Australia will work with other countries to reduce greenhouse gas emissions which will then alleviate the impacts of climate change, including rising sea levels, on the agri-food sector. This would highlight Australian commitment to small-island states, reducing the impact of climate change and supporting communities.
Increased opportunities for trade
By rejoining IFAD, Australia will support farmers across the Global South in building resilient agri-food systems that will produce significant levels of goods. This presents an opportunity for Australia to diversify its trade partners.
Many farmers from low-income countries do not have the opportunity to participate in global supply chains due to lack of transport, low agricultural output, or barriers in accessing the market (IFAD, nd, Z). Membership of IFAD enables participation in capacity-building projects that can overcome these issues. One example of IFAD supporting small-scale farmers in maximising profit and produce output is its work in Indonesia, with IFAD financing equalling $832.4 million USD. Indonesia is a country whose fertile soils present farmers the opportunity to grow a wide variety of tropical fruits and vegetables. With continued support and investment from IFAD and its members, Indonesian farmers have gained the skills necessary to leverage their produce for export to foreign markets (such as Australia) (IFAD, nd, B). This then benefits local communities within Australia and abroad. Capacity building projects like this highlight the potential held by farmers in the Global South to export local goods overseas, presenting themselves as trustworthy trade partners capable of sustaining not only local communities, but also overseas ones.
In turn, this presents Australia the opportunity to diversify trading partners. Australia can leverage IFAD membership to promote close bilateral connections with its closest neighbours while supporting sustainable agriculture, as well as the communities behind it. By diversifying trade partners, Australia can combat supply chain issues that may arise from geographical tensions and trade issues as well as supporting small-scale farmers in the Global South.
Australia fosters ties with countries outside the Asia-Pacific
By committing to becoming a member of IFAD, Australia has the unique opportunity to position itself as a major actor within the development sphere not only within the Asia-Pacific, but in other regions too.
Australia operates through IFAD and supplies low-middle income countries with support in agricultural development, it can foster deeper diplomatic relations between Australia and the Asia-Pacific region. Australia’s involvement in IFAD would not be limited to the Asia-Pacific as IFAD operates globally. This presents an opportunity for Australia to establish a presence across the world in regions it does not have a particularly strong presence, such as Latin America. This is particularly relevant with the recent Asia-Pacific Economic Cooperation Forum (APEC) held in Lima, Peru in November 2024. Australia has not given the region any direct funding since 2014. This highlights a potential region of interest where Australia can offer agricultural support through IFAD. This would demonstrate Australia’s commitment to Sustainable Development Goal 2 of zero hunger by 2013, assisting communities in Latin America to develop resilient agri-food systems.
The decision to join IFAD would enable Australia to develop stronger bilateral relations with nations outside of both the Commonwealth and Asia-Pacific. It would formulate stronger ties between nations, leading to greater trade, travel, and strategic investment opportunities.
Barriers and Risks
This section will discuss the risks of the aforementioned policy. It will encompass social, economic, and environmental risks.
Social/Cultural
There are social and cultural risks involved with donor countries offering economic support to other nations through IFAD. Farming is a practice cultivated through centuries of tradition and it is imperative that all involved with IFAD projects have an understanding of the culture and history of the community that they are working with. This includes efforts to integrate traditional agricultural customs with modern-day sustainability forward practices.
Furthermore, it is equally important that local communities are engaged with development projects, have been consulted at every step, and develop a strong rapport with IFAD members working on the ground. Cultural sensitivity should remain at the forefront of IFAD policy, and be demonstrated by each person working alongside communities. This risk can be mitigated through community consultation, cultural sensitivity workshops, and language training for staff associated with IFAD working in communities.
Economic
There is some economic risk to Australia involved with Australia re-joining IFAD.
IFAD funds projects globally, and by contributing a set donation annually, Australia’s money is pledged to projects that may not have any strategic benefit to Australia in regards to foreign relations. This was a significant reason for withdrawal in 2004. Additionally, funds donated to IFAD could be used domestically instead, investing in Australia’s own agricultural sector. This could also cause distrust from taxpayers, who could question the government’s priorities and expenditure. However, this can be mitigated by a transparent approach to how much is being donated annually, and to what projects the money is being dedicated to.
Environmental
Farming and sustainability practices vary regionally, and each climate has its own set of environmental challenges. It is imperative that IFAD works with local communities to learn about traditional farming practices used within the region and adapt these to modern agricultural practices to find the farming process that works best for the climate the project is based in. Australia, a nation with 6 types of climate, and 28 sub-categories within this, has the opportunity to not only learn about farming practices in regions with similar climates, but to also participate in knowledge sharing (Australian Bureau of Meteorology, nd). This can amplify Australian perspectives as well as local community perspectives, building more resilient agri-food systems,
Policy Recommendation
Australia should become a member of IFAD as a commitment to agriculture, sustainability, and community development globally. Australia is already a United Nations member state, therefore fulfilling the criteria to join. Due to its previous withdrawal, Australia is required to obtain the approval of the IFAD Governing Council. This is followed by deliberation from the executive council, which would then seek approval from the Secretary-General of the United Nations (Australian Agency for International Development, 2011). The decision to re-join IFAD will be led and delivered by the Department of Foreign Affairs and Trade (DFAT).
IFAD does not require a joining fee when a state seeks membership. However, IFAD relies on contributions from member states to support projects. There is no pre-determined amount required if Australia were to re-join. This is at the discretion of DFAT and the IFAD Governing Council. Canada, a country with similar population and GDP,, has donated $365 million USD since IFAD was created in 1978. Canada was also a founding member of IFAD, alongside Australia. By using this same figure and taking into account economic and political similarities between both nations, it is recommended that Australia pledges $20 million USD in its first annual donation (IFAD, 2024).
By gaining IFAD membership, Australia is presented with the opportunity to collaborate with other nations to address issues impacting the agricultural sector on a global level, as well as benefitting from innovation and information sharing. Joining IFAD presents Australia with the opportunity to utilise newly developed technology and policy innovation. This information sharing will serve to directly benefit Australia’s own agricultural sector as it can stay up-to-date with the latest developments in agricultural technology. This maximises farming efficiency domestically, increasing profit and produce output from global innovation.
A continued commitment to IFAD demonstrates Australia’s commitment to the global agricultural sector, building climate resilience as well as supporting rural communities in both the Global North and South. IFAD has a major presence in the Asia-Pacific, with 56 active projects in 20 countries across the region. This is an incentive for Australia to rejoin IFAD. As a major actor within the region, it can contribute to projects that help neighbouring countries. Alongside this, IFAD has a presence in 92 countries worldwide, across 5 continents which clearly highlights the breadth of the work this organisation does (IFAD, nd). Australia, as a middle power, can leverage a position within IFAD to create strong bilateral relations with nations outside of both the Commonwealth and Asia-Pacific.
Rejoining would also allow Australia to act as a regional outpost for IFAD projects, facilitating a greater connection between Australia, Indo-Pacific. Australia is a major strategic partner in the Asia-Pacific region. By participating in rural projects in low-middle income countries in the Pacific Islands specifically, it gives the country a greater level of influence and builds upon its global reputation. It establishes a unique national identity as a country with humanitarian aid and support for rural communities at the cornerstone of its foreign policy. Participation within IFAD could see Australian participation in projects in countries such as Samoa, where $35.46 million USD has been invested to support communities in achieving sustainability, capacity building, and disaster resistant agrifood systems. Australia could also improve bilateral relations, as can be demonstrated through IFAD working with the Fijian Ministry of Agriculture to strengthen internal procedures and governance strategies (IFAD, nd, c).
Australia is an active participant in multilateral institutions and IFAD, as a recognised organisation of the United Nations, should be no exception. Membership within IFAD presents Australia the opportunity to demonstrate a commitment to the agriculture and humanitarian development sector globally. Australia would increase its ability to work multilaterally to mitigate the risks of climate change, as well as highlight its commitment to the United Nations Sustainable Development Goals. Furthermore, through involvement in IFAD, Australia can consolidate its position as a major regional actor, striving to establish strong international support for engagement and development in the agricultural sector domestically and internationally.
Conclusion
As a middle-power, joining IFAD offers Australia the opportunity to strengthen its commitment to sustainable development by pledging donations to fund IFAD projects, as well as participation in said projects. Furthermore, Australia’s geographical location within the Asia-Pacific highlights the space for Australian involvement. Australia can position itself as an influential nation within the agricultural sector, acting as an outpost for IFAD projects in the region, supporting its closest neighbours.
It is in Australia’s interest to join IFAD. It can commit to building climate resilient agri-food systems, lowering greenhouse gas emissions which will lead to a lessened impact of climate change felt globally. Additionally, it can participate in community-first projects that combine tradition with modern-day agricultural tactics.
Furthermore, it is imperative that Australia, as the only country to withdraw from IFAD, joins the greater international community in its pursuit of Sustainable Development Goal 2 (zero hunger by 2030). IFAD membership allows Australia to participate in knowledge sharing, to learn about the latest agricultural techniques, and demonstrate a commitment to both sustainable development and an awareness of the impacts of climate change, especially in low-income countries.
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