The New South Wales Farmers' Association has joined Primary Industries Minister, Ian Macdonald in condemning reports that the CSIRO may drastically reduce its agricultural research efforts.

NSW Farmers' Association Chief Executive Officer, Dr Ray Johnson, says the reports are a huge concern to the farming industry at a time when more research is needed, not less.

"CSIRO used to be the pre-eminent organization in Australia for agricultural research, and indeed led the world in this area. Nowadays this is but a poor memory," Dr Johnson said.

"Only last month, researchers from the CSIRO branded Australia's drought relief programs as doing more harm than good, this recent stance is just rubbing salt on an open wound," Dr Johnson said.

The Association believes a lack of research into agricultural production will further exacerbate the ongoing reduction in farmers' terms of trade, with costs significantly increasing and commodity prices either static or reducing.

"Productivity improvements for the nation's farmers are the key determinant of Australia having a sustainable agricultural production into the future, and the key way of achieving this is through effective research and development," Dr Johnson said.

"Australian agriculture needs to compete on an international level and against proven industry heavy weights. If we don't invest in improving industry productivity and service buyers will quite simply do business elsewhere," Dr Johnson said.

Dr Ray Johnson says it pleasing to see the Minister for Primary Industries, Ian Macdonald back farmers on this issue and acknowledge their contribution to employment and the economy.

In NSW alone, agricultural and related industries contribute an estimated $40 billion in economic activity each year. The NSW farming sector combined with the flow-on industries such as food processing and woven goods also accounts for up to 30 per cent of regional employment in this State.

"We fully support Mr Macdonald's comments when he asks if the CSIRO have lost the plot completely," Dr Johnson concluded.