The new transitional income support program will help qualifying farmers coming off EC assistance with daily living expenses.

It is designed to complement a $5,500 climate change adjustment program advice and training grant which provides farmers with professional advice, including improved farm planning, and training to update or acquire new skills to manage the risks of climate change or prepare for a life off the land.

Minister for Agriculture, Tony Burke, said the short-term income support would help farmers in financial difficulty in areas where EC no longer exists.

The money would give farmers access to information or courses to suit their circumstances.

He said the Government had committed $761 million for EC assistance in the coming year.

There were currently 84 EC areas across Australia and 14 areas which were in the interim declaration phase – accounting for 69pc of the country.

There are still exit grants of up to $150,000 for farmers who decide to leave agriculture because of the impact of the long-running drought, but the forecast take-up of these has been revised and savings from this grant program was a major contributor to the overall funding reduction in the agriculture portfolio.