A new guide to empower farmers when it comes to the collection and management of their data is slated for release early next year.
Version two of the Farm Data Code is currently being tested by the National Farmers' Federation.
It builds on the original document, which was released in February 2020.
NFF CEO Tony Mahar said the code would give farmers a framework to ask service providers the right questions about how they manage farm data.
"The aim of the Farm Data Code is to promote digital adoption in agriculture by ensuring there's transparency in the way digital data about the farm is collected, used and shared, so farmers have confidence and trust when they embrace technology," Mr Mahar said.
"Farmers are concerned about the privacy and security of farm data as it isn't protected by Australian law and can only be safeguarded by contracts.
"It's important farmers understand how their farm data is gathered, used and shared, but they don't always have access to legal and IT skills to determine this."
Read more:
Mr Mahar said the code outlined transparent, ethical and secure agricultural data practices service providers should include in their contracts, procedures, and policies with farmers.
He said version two was being tested to ensure it stood up to complex scenarios such as contracts involving multiple parties and new technologies like blockchain.
The NFF is also planning to release a certification program to enable service providers to be vetted and certified as being compliant against the Farm Data Code.