Farmers want more done to increase food supply in the wake of Tuesday's budget but have welcomed a huge injection in funds to help growers transition to sustainable production and land management.
President of the National Farmers' Federation Fiona Simson said the rising cost of groceries has Australians worried.
She said more needs to be done around labour shortages and supply chain issues to increase production and curtail rising food prices.
"While this budget delivers on fantastic election commitments in areas like connectivity, it is also wanting when it comes to some of agriculture's greatest challenges," Ms Simson said.
"Pressures on farmers are being felt by everyday Australians who are witnessing supply and price shocks on supermarket shelves."
Farmers will be supported by $302.1 million over five years to transition to sustainable production and land management practices, funded through the environment department's Natural Heritage Trust.
"This is a critical announcement that will help farmers understand and respond to climate change, and access new environmental markets," she said.
While welcoming $134.1 million over four years to boost biosecurity, including targeting foot and mouth disease and lumpy skin disease, Ms Simson said it doesn't address a sustainable funding model around biosecurity.
Agriculture minister Murray Watt said $46.7 million towards Australia's livestock traceability system is more than double the commitment made by the previous government.
However, the federation said $4.6 billion in cuts to water infrastructure projects committed to under the previous Government will leave them high and dry.
The Albanese government won't proceed with the Hells Gates Dam project in Queensland, which was funded by the coalition government in the March budget pending regulatory approvals.
Labor is also deferring $899.5 million over four years on water infrastructure like the Dungowan Dam and pipeline, near Tamworth in NSW, and the Wyangala Dam wall raising in the state's central west.
"It's disappointing that we seem unlikely to break our drought on major water storage upgrades any time soon," said Ms Simson.
The coalition's agriculture spokesperson David Littleproud also slammed the withdrawal of dam funding.
"These cuts are devastating. They were needed to help future farming but are now at the bottom of the Labor list."
Mr Littleproud also said a lack of investment in the budget in fixing supply chain issues would see the average family worse off by at least $2000 by Christmas.
"Groceries are eight per cent higher, not just because of natural disasters, but also by a Labor made disaster in scrapping the Ag Visa," Mr Littleproud said.
He said the budget had created uncertainty for agriculture by creating 4.8 million hectares of additional protected areas.
Farmers for Climate Action said the budget delivered big investments across climate, agriculture, and emissions reduction.
CEO Fiona Davis welcomed a further $8.1 million to be invested over three years to help commercialise methane busting seaweed and make it available as a livestock food.
And she applauded a $20 million investment to establish an outreach program to help Australian farmers and land managers to participate in carbon markets.
