Mr Johnston said that the final budget "ran quite counter" to what Treasurer Joe Hockey had been advocating just 12 months ago.

"For Tasmanian farmers it was particularly good," he said.

"All primary producers will be able to immediately deduct capital expenditure on fencing and water facilities such as dams, tanks, bores, irrigation channels, pumps, water towers and windmills for income years beginning on or after July 1, 2016.

"That is slightly confusing but it means the allowance begins in 2016 and will have immediate effect from then.

"Farmers will also be allowed to depreciate, over three years, all capital expenditure on fodder storage assets such as silos and tanks used to store grain and other animal feed.

"Currently, the effective life for fodder storage assets is up to 50 years.

"There is a tax cut to all small businesses of 1.5 per cent for small companies and a 5 per cent tax discount on income from unincorporated small business activity.

"All small businesses, including farms, get an immediate tax deduction for any individual business asset they buy costing less than $20,000 - the way I read it is that applies to any number of new assets under that value.

"The budget confirmed the Australian government's $60 million over four years towards the development of tranche two irrigation projects in Tasmania."

Mr Johnston said that the budget locked in the announced change to the Tasmanian Freight Equalisation Scheme from January 2016 to include a subsidy at a flat rate of $700 per twenty-foot equivalent unit for exports.

"It was the tweak we needed," he said.

"It had been an anomaly of the system that we have not been able to get freight equalisation on goods trans-shipped through Australian ports from Tasmania but bound for export."

Mr Johnston described the budget as a good result all round for farmers and established the fact that agriculture was one of the pillars of the Australian economy.