UPDATE: BARNABY Joyce has returned a $40,000 award bestowed on him by mining magnate and cattle queen Gina Rinehart last night.

The Nationals leader and former agriculture minister this morning formally declined the money — after initially accepting the cheque onstage last night at a gala celebration of the National Day of Agriculture.

The cheque will be returned to Hancock Prospecting, sponsors of the National Agriculture Day award.

It follows a public backlash to Mr Joyce’s receipt of the award.

The National Farmers’ Federation immediately distanced itself from the award, with president Fiona Simson saying “we didn’t, we don’t and we won’t support gifts to pollies”.

I was very humbled to receive the National Agriculture Day award but very surprised to receive the novelty-sized cheque. I did not take any cheque from the event and as soon as office hours resumed today, I took immediate action to politely decline any acceptance. — Barnaby Joyce (@Barnaby_Joyce) November 22, 2017

Hancock Prospecting spokesman Adam Giles told The Weekly Times that the mining company alone sponsored the award, and defended the decision to award $40,000 to Mr Joyce.

“I liaised with each of the original agricultural organisations who helped us establish the National Agriculture Day — this being before the NFF had decided if it wanted to join this important national day,” Mr Giles said.

“And they were all in agreement that Barnaby stood up for industry more than anyone, going far beyond his former role of ag minister.”

The other organisations were: the Pastoralists and Graziers Association of WA, the Northern Territory Cattleman’s Association and Seafood Industry Australia.

My Joyce took time out from campaigning in the New England by-election to attend a gala dinner in Canberra last night hosted by Hancock Prospecting, where Mrs Rinehart delivered the inaugural award and accompanying cheque, for leadership and advocacy in the industry.

In her speech, Mrs Rinehart singled out Mr Joyce as “a champion of our industry and our friend”.

“The agriculture industry was very fortunate to have had such a dedicated, understanding and enthusiastic minister, one with years of first-hand experience,” she said.

“A real Aussie country boy, and boy do we hope you return!”

Mrs Rinehart later presented Mr Joyce a giant novelty cheque, to which Mr Joyce responded: “Hooley dooley.”

During his acceptance speech, he said would use the money on his farm.

Sources close to Mr Joyce said the former minister had no knowledge of the award. It is understood the money has been declined rather than donated — as many on social media suggested — because if donated, Mr Joyce still would have received a benefit by way of a tax deduction.

NFF president Fiona Simson said on Twitter she was left “completely surprised” by the award, which the NFF had not been consulted about.

👍 #Agday is about the whole of industry not about any one person.We were not consulted & completely surprised by the presentation last night https://t.co/PexUq6zsJ7 — Fiona Simson (@afsnsw) November 21, 2017

Complete rubbish. @NationalFarmers & it’s partners supported and organised whole day of industry celebration,Hancock & partners did dinner. https://t.co/4M5uFEfRbd — Fiona Simson (@afsnsw) November 21, 2017

The first National Agriculture and Related Industries Day, held yesterday, was the brainchild of Mrs Rinehart — who last year bought Australia’s biggest cattle holdings Kidman & Co with China’s Shanghai CRED.

It was supported by the National Farmers’ Federation, as well as the Federal Government’s Department of Agriculture and Water Resources.

NFF chief executive Tony Mahar said the gala dinner was hosted by Mrs Rinehart and the NFF was not directly involved in its organisation, nor did the NFF know Mr Joyce was attending.

“We did not have input into the night’s proceedings nor did we have any knowledge that an award of that nature was going to be presented,” Mr Mahar said.

“We did not and would not support such antics.”

Mr Giles said the NFF had a run sheet of the evening “showing them the award was happening”, but that the winner was only known to the other agricultural organisations supporting the day, excluding the NFF.

A spokesman for the Department of Agriculture said the department provided a one-off sponsorship of $60,500 to the NFF to support the day and regional events, and that it had nothing to do with the gala dinner or award.

Mr Joyce helped launch the day in September, as agriculture minister, while under a cloud over his dual citizen status. He was disqualified from Parliament last month.

Opposition leader Bill Shorten said the award “doesn’t look right, it doesn’t smell right”.

“Why on earth is a mining millionaire giving a Turnbull government minister a $40,000 cash present?” Mr Shorten said.

“This is very, very unusual and concerning conduct.”

Labor’s agriculture spokesman Joel Fitzgibbon said the award “could have gone to many people in agriculture — our innovative farmers, entrepreneurs, scientists, environmentalists ...”

“But no, it went to Barnaby Joyce who is facing an expensive by-election in New England,” Mr Fitzgibbon said.