FARMING is doing little to dispel the perception it is a poor cousin in the classroom.

Productivity Commission figures just released show only 7 per cent of people farming or servicing agriculture have a degree.

That compares to 23 per cent across other industries.

Melbourne University's Professor Snow Barlow is aware of the problem, which he said has come at a critical time for Australian agribusiness.

"But you can't back away from the facts - there are not enough degree-relevant farmers out there," he said.

"We know agricultural enrolments have been going down across the board. This is influenced in part by the ageing cohort of farming, which is an industry in need of a generational change.

"And that new generation will need to be an educated one."

Prof Barlow said while the university's Dookie campus had high acceptances of positions, it also faced high deferrals.

And he said many who deferred never took up their positions.

"Why I say it is a critical time right now is that potentially there are significant opportunities for Australian agriculture with the growing world demand for food - but there is also challenge in areas such as climate change and how we farm with it," Prof Barlow said.

"To deal with this we need qualified people."

Marcus Oldham director of farm business management Tony Hudson said the college was enjoying strong enrolments, and expanding its options to include postgraduate work.

"The product we offer provides a sound business grounding and I think enough people have shown they know just enough about commodity marketing to be dangerous - whether in a family farm or corporate entity," Mr Hudson said.

Robert Handbury, who runs beef property Swinging Shovel in the South Australia's lower South East, is a Marcus Oldham graduate.

He said it was an outstanding four-year investment.

"While not necessarily making me a better farmer in the paddock, it definitely helped make me better in understanding how to run a modern business, the finance and the increasingly complex issues which farming faces, including succession," Mr Handbury said.