TFGA CEO Peter Skillern said that the government had shown it was willing to take the necessary steps to expand agricultural production in Tasmania to $10 billion by 2050.

Under the scheme, farm and agrifood businesses will be able to borrow between $30,000 and $1 million, especially for projects that had a long lead in time until they delivered an income.

"In an ever-changing environment like the agricultural sector, the ability to plan for a sustainable future without that element of risk is a great benefit to farmers," he said.

"The loan scheme will encourage eligible businesses to keep farming, innovating and contributing to the Tasmanian economy without fear of permanently damaging their bottom line."

It is open to producers involved in agriculture, fruit, wine and horticulture, aquaculture and apiculture, for agri-tourism, as well as down-stream value-adding businesses.