(ABC) - The Federal Government has announced $3 million to help develop new technologies that will provide better yield forecasts for grape and cotton producers across Australia.

The Australian Grape and Wine Authority (AGWA) will lead the project, which will involve developing new monitoring technologies aimed at boosting yields, as well as protecting crops from diseases and other threats such as frost.

The Government said AGWA and its partner organisations would match the grant by more than $10 million in cash and in-kind contributions.

Deputy Prime Minister Barnaby Joyce made the announcement at Orange, in central-west New South Wales, on Tuesday and said it would have "substantial" benefits for the grape and cotton industries.

He said smarter use of technology would help growers assess disease risk before planting, and check the fruitfulness of grape vine buds during winter.