AGRICULTURE and the rural sector have certainly borne their share of the Budget's pain, with a 31.8 per cent reduction in funding to the Department of Agriculture, Fisheries and Forestry and its agencies in 2009-2010 as part of the Government's forecast savings of more than $22 billion over the next four years.
The closure of Land and Water Australia, plus major cuts to the Rural Industries Research and Development Corporation and the Sugar Research and Development Corporation are behind the bulk of the savings.
Meanwhile the Department of Environment, Water, Heritage and the Arts can enjoy a 63.9 per cent rise in funding for its portfolio.
The Department of Prime Minister and Cabinet also gets a good boost, with a 33.2pc increase to its portfolio allocation for the coming year.
It was reported last week that the Government will close Land and Water Australia by the end of this year to the shock and disbelief of its board and the rural sector.
Rural Industries Research and Development Corporation will also suffer cuts, with successive cuts of $3 million a year over four years which the Government says can occur through reductions in research duplication and organisational efficiencies.
Funding to the Department of Agriculture, Fisheries and Forestry will be also be cut by $12m over four years, with a hit this coming year of $3.4m, which will be found by "identifying lower priority activities" that can cease with minimal impact on the Government's objectives.
The good news is drought assistance will continue to be provided to farmers, despite an anticipated reform of exceptional circumstances assistance not finalised in time for this year's budget.
Minister for Agriculture, Tony Burke, said $715.3 million had been allocated in the coming financial year to provide support to drought-affected farmers, families, small businesses and rural communities.
EC assistance is unchanged, but there has been a 12-month extension of EC assistance for small businesses and the continuation of a $20,000 salary and wages exemption for EC relief payments and the $750,000 off-farm asset exemption for the EC interest rate subsidy.
This is on top of an extension of mental health services in rural areas.
Mr Burke said while seasonal conditions had improved, there were still about 20,000 farmers and 1000 small businesses still receiving EC assistance.
In the area of water, the Government says it has committed to spend $300 million for new on-farm irrigation efficiency grants in the Murray Darling Basin, a measure announced prior to the budget.
A previously announced $500m acceleration of the water buyback scheme in the Murray Darling Basin was also included.