Unless all states refer their industrial relations powers to the Commonwealth, the Federal Government's ambitious pledge to achieve nationally-consistent industrial relations laws will be seriously jeopardised, the National Farmers’ Federation has warned today.

NFF president David Crombie is backing the concept of a national system to overcome the "jumble of workplace relations systems that beset Australian workplaces".

But he says the Federal Government should not lose sight of the need to include all industry sectors in its plan.

"Most states realise that maintaining multiple workplace systems places unnecessary burdens on business," Mr Crombie said.

"As negotiations continue, we urge the Federal Government not to lose sight of the big picture – specifically, the need for all sectors to be included if the new system can truly be said to be national.

"Of principal concern to farmers is the fact that over 90pc of Australian farms are small family-owned businesses and, therefore, are unincorporated businesses.

"This means, should negotiations fall over, farmers would fall outside of the Federal Government's Constitutional power to make laws as they apply to corporations.

"If all states do not come on board with one national system, most of Australia’s 155,000 farms and their almost 300,000 employees will be stranded in various state systems.

"The Australian farm sector needs the states to refer their powers for there to be any benefit for farmers."