The Government says the program will help deliver a long-term sustainable future for Murray-Darling Basin irrigation communities.

Water Minister, Senator Penny Wong, said the funding would help irrigation communities adjust to a future with less water by supporting farmers investing in water-saving irrigation practices and technology.

NFF president David Crombie said the lobby group had been calling on the Government to accelerate delivery of water infrastructure projects, many of which have been delayed by negotiations with the States.

"Today’s announcement goes some way towards restoring the balance between buybacks and infrastructure upgrades," Mr Crombie said.

"The Government has delivered on NFF calls for this specific on-farm project and will partner with irrigators to continue their already-demonstrated ability to increase efficiency, share water savings with the environment and create jobs in the bush.

"This investment is good for production at a time when the world is crying out for food and fibre and we excel at producing it, despite the challenges we face.

"It’s also beneficial for the environment, stimulates employment and supports regional communities."

The On-Farm Irrigation Infrastructure Program was open to irrigators in the Southern Basin and the Lachlan River catchment.

The new program invites competitive bids to deliver cost-effective ‘tranches’ of on-farm investment from partners such as irrigation water providers, peak-industry groups and catchment management authorities.

The program has been modelled on the arrangements trialled through the On-Farm Irrigation Efficiency (Pilot Projects) program. It will invest in more efficient irrigation systems in areas where a long-term economic and environmental benefit can be demonstrated.

The projects must help secure a long-term sustainable future for irrigation communities; deliver substantial and lasting returns of water to the environment to secure real improvements in river health; and deliver value for money.

* More information on this program and Water for the Future is available at www.environment.gov.au.