Victorian Farmers Federation president Emma Germano says the organisation is pleased the government heeded calls to maintain road funding, despite the temporary cut in fuel excise.
The federal government halved the cost of excise to 22.1 cents a litre in the budget, for six months until September.
Federal Treasurer Josh Frydenberg says the temporary reduction in excise will not be at the expense of road funding, with the government committing $12 billion, by the year, to new construction.
"Farm businesses will no doubt benefit from the tax deductions for investment in skills and technology, helping farmers to adopt new technology and upskill their workforce," Ms Germano said.
"The $2 billion investment in the Regional Accelerator Program, including a focus on Shepparton, Mildura, Warrnambool and the Latrobe Valley is a welcome step forward."
She said investment in major freight terminals at Beveridge and Truganina would drastically improve the flow of container freight into and out of the Port of Melbourne.
"The $500 million for regional manufacturing, $30 million for regional plastics recycling and $45 million for the Sunraysia Highway will benefit Victorian farmers," she said.
"All eyes now look towards regional Victoria getting a fair go in the Victorian budget on May 3."
Also in the budget is $2.2 million funding, for a business case into evaluating the upgrade of the Maroona, near Ararat, to Portland rail line, in the south-west.
The 172 kilometre line connects the western half of Victoria to the national grid and port of Portland.
Key stakeholders have been advocating to upgrade the line from 19 tonne axle loads (TAL) to 23 TAL to strengthen its competitiveness.
The Southern Grampians shire has estimated funding of about $206 million would provide a track fully converted to meet modern standards and freight task for 23 TAL and 80 kilometre an hour speed limits.
The government said the decision to fund the business case built on work done by the Port of Portland, which provided a preliminary economic case for the upgrade.
"We have enlisted the Australian Rail Track Corporation to prepare a business case focusing on a detailed analysis of the benefits as well as a market engagement process to determine what volumes could be attracted to the line," deputy Prime Minister Barnaby Joyce said.
Federal Wannon Liberal MP Dan Tehan said the business case would determine the full extent of the upgrade, including scope, benefits and beneficiaries.
It would be completed in eighteen weeks.
The budget also sets aside $45 million funding for the Sunraysia Highway from Ouyen to Ballarat.
Mallee Nationals MP Anne Webster said the project would make the road safer, reduce travel times and boost the economy.
The upgrades will include shoulder widening and intersection upgrades.
"These will improve access for High Productivity Freight vehicles, leading to increased safety for all road users," Ms Webster said.
Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
