The partnership will result in Federation University's Ararat Campus on Laby Street being reactivated to become the Ararat Jobs and Technology Precinct.

Five senior researchers and council's economic development team will move into the precinct to form a business incubator for the region.

They will work with farmers in the region to identify opportunities to improve economic outcomes through research.

READ MORE:

Ararat Rural City Council chief executive Dr Tim Harrison said value-added research in agriculture had the potential to greatly benefit regional farmers.

"When we talk about value-adding we're looking at ways to increase the value of products we produce locally at every stage of production," Dr Harrison said.

"Too often we have local farmers assuming all the risk to grow food and fibre that is sold in raw form but becomes far more profitable during subsequent stages of production.

"I'm confident that Ararat is soon to be known as Australia's premier location for advanced agriculture research, where we stood up to transform our economy from price takers to price makers."

Federation University vice chancellor and president Professor Duncan Bentley said the partnership would greatly benefit both parties.

"The agricultural diversity surrounding Ararat, combined with its extensive infrastructure, make it an ideal location for the research, training, and commercialisation activities that are needed to drive strong economic returns," he said.

"Universities have a critical role to play in the prosperity of their local communities and we offer the best pathways to higher education and employment in regional Australia.

"Working in partnership with local industry and the Council, we're going to build on that here in Ararat."

Minister for Education and Member for Wannon Dan Tehan joined the announcement of the partnership at Ararat Town Hall.

Mr Tehan agreed there were significant mutual benefits to the partnership.

"This project will become regional Victoria's most comprehensive trial of an agribusiness research partnership and will create huge opportunities for Ararat to focus on innovation and research collaboration," he said.

Dr Harrison also thanked Mr Tehan for recognising the importance of the project.

"We're extremely grateful to have the support of Dan Tehan who recognises that the cutting-edge agribusiness research we deliver in Ararat is going to boost value beyond the farm gate."

While you're with us, you can now receive updates straight to your inbox from The Ararat Advertiser. To make sure you're up-to-date with all the news from across the Ararat shire, sign up here.