After calls from peak industry bodies to commit to the continuation of the Farm Innovation Fund (FIF), both sides of government have come to the party.
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The Liberal and Nationals NSW Government said it will double the amount farmers can access while Shadow Minister for Agriculture Mick Veitch has said a Labor government would support the fund.
Deputy premier and Minister for Regional NSW Paul Toole said a $1 billion expansion of the fund will allow farmers to be able to borrow up to $2 million to help them manage adverse seasonal conditions, improve productivity, and ensure sustainability with a long-term, low interest rate loan.
"For almost a decade, the FIF has given farmers access to long-term, low-interest loans of up to $1 million to finance projects that contribute to productivity and resilience - now we are doubling that," Mr Toole said.
"To date, more than $840 million in loans under the Farm Innovation Fund, Seafood Innovation Fund and Drought Assistance Fund have been approved, assisting more than 8,600 NSW farmers to help launch crucial innovation and infrastructure projects."
Farm productivity will always be a priority for the government, according to Minister for Agriculture Dugald Saunders.
"The Farm Innovation Fund is evolving to keep up with changing economic and environmental challenges," Mr Saunders said.
"The fund will no longer be limited to on farm infrastructure but rather the imagination of farmers who want to future proof their land, their operations and their businesses."
Mr Veitch said his party is well aware of the benefits the fund has provided over the years.
"NSW Labor supports the retention of the Farm Innovation Fund and will continue to administer the fund through the Rural Assistance Authority," he said.
"During the most recent prolonged drought, NSW Labor called for this fund to be topped as it was an important tool for assisting primary producers."
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After calling on both sides of government to commit to the fund, NSW Farmers policy director Kathy Rankin was pleased with the commitments.
Ms Rankin said through the use of the FIF, farmers throughout the state have been able to to identify and address risks to their farming business and adapt to changes to seasonal conditions.
"Farm businesses need to be profitable to survive, but they are abnormally exposed to external factors such as climate variability, high energy and input costs, and labour availability - many of which have come to a head over the past year," she said.
"It is undeniable that the economic and environmental landscape is changing, and farmers need to be equipped for what lies ahead.
"We know that every dollar invested in boosting farm productivity delivers a dividend of $12 for the economy."
