The Australian National University has been researching sustainable farm practises for the past 20 years, and most recently how farm dams can be improved.

Professor David Lindenmayer, speaking about the ANU's project on a property in West Wodonga, said up to 97 per cent of farm dams were underperforming.

"We spend billions of dollars a year on livestock breeding and pasture improvement, but hardly anything on how we manage the water," he said.

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"There are ways to manage these dams with relatively minimal changes; by having fences, some vegetation around the dam, digging it deeper and creating a hardened access surface.

"We need to get the information out there and provide more of the scientific evidence."

ANU's findings so far have been passed on to thousands of farmers in Southern NSW through demonstrations in partnership with Murray Local Land Services, and the money announced by Agriculture Minister David Littleproud will fund more of this engagement and more research.

"If we can get the data, we can then prove we have the science right and then it's about extension out to farms right across the country," Mr Littleproud said.

"This complements the $34 million we announced in respect to our agricultural biodiversity stewardship fund that ANU is also partnering in getting the methodology right for us.

"The methodology that I hope to prove to the federal government we can then form part of a climate solutions fund.

"Our farmers are some of the best environmental stewards of our land and they should be rewarded for it financially."