The Productivity Commission is reviewing the 16 rural research and development corporations (RDCs) that last year received $207 million from the government and about $253 million from levies paid by farmers.

The coalition has interpreted this review as a sign that the government plans to cut funding to the industry-focused organisations, but Mr Burke said the government does not intend to change the RDCs' funding, reports The Australian Finanical Review.

However, he flagged that any extra funding for agricultural R&D would be offered only on a contestable basis, requiring researchers to propose joint projects and apply directly to the government.