The $50 million program was facing the scrap by Labor's razor gang ahead of next week's budget, but it looks likely to gain a repreive.

NSW Farmers' Association rural affairs committee chair, Alan Brown, says reinstating the project reflects the strong need for trained people in the agricultural sector.

"We strongly criticised the previous decision to axe this program, so it is good to see that the Government has listened to farmers on this issue," Mr Brown said.

"Without the ability to attract apprentices and develop the skills, education and training of our future workforce, farming's future capacity to generate economic wealth was in serious jeopardy."

The National Farmers' Federation estimates that there is a labour shortage of 100,000 people in rural industries, and says the program is needed for capacity building.

The Agriculture and Horticulture Apprenticeship Incentives Program allows Australian apprentices undertaking a Cert II, III and IV qualification in agriculture or, if in a rural or regional area, horticulture to apply for an $800 tool kit and up to $1000 to cover course fees in the first and second year.