Farm Business Transition Program Round 2

Purpose and Program Overview

The Farm Business Transition Program Round 2 is an Australian Government initiative designed to support sheep producers directly affected by the scheduled cessation of live sheep exports by sea on 1 May 2028. The program provides matched grant funding to assist eligible producers in developing tailored farm business plans and transitioning to alternative farming systems and practices.

The program recognises that the phase-out of live sheep exports represents a significant structural change for producers who have historically relied on this trade. By funding both planning and implementation activities, the program aims to facilitate a managed and sustainable transition that reduces financial disruption and supports the long-term viability of affected farming enterprises.

Round 2 builds on the outcomes of Round 1, extending support to producers who may not have received the maximum available funding in the first round, as well as those who applied unsuccessfully. The combined funding ceiling across both rounds is $75,000 (GST exclusive) per eligible applicant, with a mandatory 1:1 cash co-contribution required.

Key Grant Details

• Grant amount: Up to $75,000 (GST exclusive) per eligible applicant across both rounds combined
• Co-contribution: A 1:1 cash co-contribution is required (i.e., the grant covers 50% of eligible costs; in-kind contributions are not accepted)
• Application status: Currently open
• Closing date: Wednesday, 15 July 2026
• Eligible industry: Sheep production; specifically, producers who participated in the live sheep export by sea trade on or after 1 July 2020
• Location applicability: Australia-wide (applicants must be residents of Australia for operational and tax purposes)
• Administered by: Australian Government Department of Agriculture, Fisheries and Forestry, via the Community Grants Hub

Priority Sectors

This program is specifically targeted at the sheep production sector. There are no broader industry categories eligible under this grant. Eligible applicants must have actively participated in the live sheep export by sea trade at any point since 1 July 2020.

The program does not extend to other livestock producers, agricultural businesses outside the live sheep export trade, or non-farming entities.

Funding Scope

Funding ceiling: Up to $75,000 (GST exclusive) is available per applicant across both Round 1 and Round 2 combined.

Co-contribution structure:

• Applicants must provide a 1:1 cash co-contribution
• The grant reimburses 50% of eligible expenditure; the applicant bears the remaining 50%
• In-kind contributions do not qualify.

Round-specific considerations:

• Applicants who received the full $75,000 in Round 1 are not eligible for Round 2
• Applicants who received a partial amount in Round 1 may apply for the remaining balance in Round 2, provided the activities are different from those funded in the first round.
• Applicants who were unsuccessful in Round 1 may reapply in Round 2

Cost eligibility: Costs incurred before the execution of a grant agreement, or before the agreed activity start date, are not eligible for reimbursement.

Eligibility Criteria

To be eligible to apply for the Farm Business Transition Program Round 2, an applicant must meet all of the following criteria:

• Industry participation: Must have actively participated in the live sheep export by sea trade at any point since 1 July 2020
• ABN: Must hold a current Australian Business Number (ABN)
• GST registration: Must be registered for the Goods and Services Tax (GST)
• Residency: Must be a resident of Australia for operational and tax purposes
• Legal entity: Must operate as a legal business entity (sole trader, partnership, company, trust, or other recognised structure)
• Financial institution: Must hold an account with an Australian financial institution
• Round 1 funding: Must not have already received $75,000 (GST exclusive) in Round 1

Eligible Activities and Expenses

The program supports expenditure directly related to business transition planning and the adoption of alternative farming systems. Eligible activities include, but are not limited to:

• Development of farm business plans that focus on the sheep-producing activity of the farm
• Participation in industry-recognised training programs
• Enhancement of feed base and pasture management systems
• Purchase or upgrade of technology to support business planning and decision-making
• Purchase or upgrade of water infrastructure to improve water management
• Improvement of grazing infrastructure
• Professional advisory services related to farm transition and business planning

Costs must be incurred within the approved grant activity period and consistent with the approved project scope as outlined in the grant agreement.

Assessment Process

The Farm Business Transition Program Round 2 is an entitlement-based grant program. Eligible applicants who meet all criteria and submit a compliant application will be assessed for funding, subject to the availability of program funds.

Applications are assessed against the following key criteria:

• Eligibility: Confirmation that the applicant meets all mandatory requirements
• Project merit: The extent to which the proposed activities align with the program’s objectives of supporting transition planning and on-farm adoption of alternative practices
• Value for money: Demonstration that the proposed expenditure is reasonable and proportionate to the outcomes sought
• Capacity: Evidence that the applicant has the operational capacity to deliver the proposed activities within the approved timeframe

Applicants are encouraged to review the Final Grant Opportunity Guidelines published on GrantConnect prior to submitting an application.

Recent Program Updates

• Round 2 opened: Applications for Round 2 opened on 5 May 2026, following the conclusion of Round 1
• Cessation date confirmed: The Australian Government has confirmed that live sheep exports by sea will cease on 1 May 2028, providing the legislative basis for the program
• Eligibility refinement: Round 2 guidelines clarify that Round 1 recipients who received less than the $75,000 maximum may apply for the remaining balance, provided the activities to be funded differ from those supported in Round 1
• Co-contribution rules confirmed: In-kind contributions remain ineligible; only cash co-contributions are accepted under the 1:1 matching requirement

Application Tips

Prospective applicants are advised to take the following steps before submitting an application:

• Confirm eligibility early: Verify that the business meets all mandatory requirements, including GST registration, ABN status, and demonstrated participation in the live sheep export trade since 1 July 2020
• Review Round 1 status: If funding was received in Round 1, confirm the amount received and ensure the proposed activities for Round 2 are different and do not duplicate previously funded work
• Prepare financial records: Gather documentation that demonstrates participation in the live sheep export trade and supports the co-contribution commitment
• Develop a clear activity plan: Outline the specific eligible activities to be undertaken, with realistic timelines and cost estimates that reflect the 1:1 co-contribution model
• Align with program objectives: Proposals should clearly demonstrate how the planned activities support the development of a business plan and/or the adoption of alternative farming systems
• Submit before the deadline: Applications close 15 July 2026; early submission is recommended to allow time to address any administrative issues
• Consult the official guidelines: The Final Grant Opportunity Guidelines on GrantConnect contain full application requirements, assessment criteria, and supporting documentation templates

Where to Get Help

Consider consulting a grant specialist like Pattens Group for a personalised eligibility assessment and expert assistance in preparing a strong, compliant, and competitive application. Contact us today and get connected with Australia’s best grant specialist, boasting over 35 years of experience in the industry and a 100% success rate.

For official guidelines, application details, templates, and further information, visit the official website of the Farm Business Transition Program Round 2 at business.gov.au and the associated Australian Government websites, including GrantConnect and the Community Grants Hub.