A draft report has been released by the Productivity Commission on Wednesday, mentioning about the operations of Rural Research and Development Corporations (RDCs).

The RDCs spend around $490 million per year, on research works in horticulture, grain, farm animals, and wool.

The Federal Government’s independent advisory body says that it is the responsibility of the rural industries to pay for the research work and not depend on taxpayers’ money.

The Commission also indicated that in the coming 10 years, the Government funding will be reduced to half.

According to Commissioner Philip Weickhardt, the Government's funding is given to RDCs to carry out the research work that is beneficial for the industry. He also said that “some important broader rural research needs are unlikely to be met”.

The Commissioner also said that to relieve the Government from the unfair burden, some amendments in the present arrangements, is necessary.

The Commission wants the formation of a new Government-aided RDC called Rural Research Australia.

The main aim of the RRA would be to do broader rural research work that is not driven by industry-specific RDCS.

To effectively run the research work, the RRA would require Government funds of around $50 million, per year.