The Morrison government is funnelling almost $3 million into a new project to maximise the benefits of manure for agriculture and the environment.

The project uses cutting-edge techniques such as robotics, photographic 3D scanning of nutrients and solid separation technology.

"This project could soon be turning manure into money," Agriculture Minister David Littleproud said on Monday.

Animal health company Scolexia will lead the project designed to increase farm profits with high-tech manure and nitrogen management.

Mr Littleproud said the project could see farmers produce better fertilisers and soil improvers from manure products.

It could also generate power on farmers from biogas, cutting carbon emissions.

"This has big potential and could be applied in many animal farming operations," Mr Littleproud said.

The technology will be trialled on farms across Victoria, SA, WA and Queensland.

Australian Associated Press