A longstanding WA agricultural lobby group has entered voluntary administration a week after revealing "serious financial misconduct" had been detected within the organisation.

The Pastoralists and Graziers Association appointed RSM Australia Partners Jerome Mohen and Greg Dudley as voluntary administrators at a board meeting on Thursday afternoon.

Mr Mohen said the lobby group made the decision after discovering financial irregularities and a funding shortfall, reported to be $2 million.

The PGA emailed its members last Friday confirming membership payments were suspended and an investigation under way, with several staff of the 118-year-old organisation already stood down.

"The PGA executive and committee members have recently become aware of serious financial misconduct within its organisation," the email read.

Mr Mohen said the PGA executive and committee were committed to working through the administration process so it could continue representing WA's agricultural community.

RSM would work with PGA management to "secure short-term working capital so it can continue operations while we conduct our investigations into the noted financial irregularities".

"At the same time, we will review the PGA's operations with a view to completing an appropriate restructure of the organisation's operations and financial position, so that it can successfully exit the administration process," Mr Mohen said.

The PGA has taken on several campaigns in the past 24 months and said recently the WA government's proposed changes to renewing pastoral leases could send many of its members broke.

The influential farming body played a key role in efforts to overturn changes to the state's Aboriginal heritage protection regime.

In December the PGA said proposed changes to renewing pastoral leases – that could entail Native Title compensation and Indigenous Land Use Agreements – would be a massive financial blow to the industry.

Lease terms govern the use of the state's 85-million-hectare pastoral estate, with Aboriginal pastoral enterprises representing 31 per cent of that.

In late 2023 the WA government said it would expand its 26-year-old Aboriginal pastoral support program to leverage the "enormous potential to create a pathway to economic empowerment and self-determination through a thriving Aboriginal pastoral sector".

WA's proposed lease renewal plan would include future potential Native Title compensation, and a requirement of renewed pastoral leases to negotiate an Indigenous Land Use Agreement.

PGA chair Ashley Dowden said in December an ILUA requirement could shift major financial obligations to members.

"If an ILUA is required to renew a pastoral lease it allows the Indigenous groups to hold pastoralists to ransom," he told the ABC in December.

Leases across the state expire between 2033 and 2065.

Although Native Title was not referenced in the proposed changes, a supporting DPLH document worried the PGA.

"[Pastoral] lease renewal triggers compensation to Native Title parties under the Native Title Act 1993," it read.

A WA government guideline to pastoral lease extensions also stated:

"Where Native Title exists or may exist, pastoral lessees will be required to negotiate an ILUA for the extension or regrant with the relevant native title party(s)."

The PGA acknowledged there was a "financial deficit" but would not disclose the exact amount of money that was missing.

It said in a statement that executive and committee members had recently become aware of "serious financial misconduct within the organisation".

The PGA is one of two major lobby groups representing agricultural industry interests across WA, the other being WAFarmers.

President Tony Seabrook said the PGA was in the process of tracking down a long-term investment bank account with $2 million cash, accrued from the sale of its headquarters more than a decade ago.

"We believe there's been criminal activity [involved]," he told The West Australian

A reported $1 million bill from the Australian Tax Office from an unknown, long-standing debt has also added to the PGA's recent financial woes.