The Budget has got a tick from Federated Farmers, which says the Government's spending proposals are sensible in the current tough economic circumstances.
It says a projected $900 million increase in new operating spending is modest, compared with the total Government operating estimate of $72 billion.
Vice-president William Rolleston said the Budget is moving in the right direction to reduce spending over time, and it includes some key initiatives that are relevant for rural communities.
He said there is going to be an increase in research and development of $200 million over four years.
Dr Rolleston said it's beneficial and a good investment in the future and it has a big rural component in it.
He said there is also $80 million funding for irrigation which will benefit the economy and the environment, as well as providing social benefits.
Dr Rolleston said the proposal to reduce ACC levies will also be welcomed by farmers.
But he said they should be aware of the Government's intention to lower levies when there's a reduction in workplace accidents - so he the onus is on everyone in the rural community to reduce the accident rates.