NSW Farmers President Xavier Martin says while the first Labor Budget contains promising announcements, rural communities will be "bitterly disappointed".
The Treasury papers reveal the cost of living is set to increase with gas and power prices to skyrocket over the next two years, and long-term water spending has been slashed while the trapdoor has been set for water buybacks.
"It may seem strange to talk about drought while much of the state is in flood, but farmers know Australia goes through a cycle of wet and dry - this is precisely the time we need to be planning ahead for drought," Mr Martin said.
"Critical drought-proofing efforts such as Dungowan and Wyangala dams have been 'deferred', and the likelihood of more water buybacks means there will be less water for agriculture once the rain stops.
"Rural communities are already looking at major economic losses as a result of this widespread flooding, the last thing they need is even less certainty into the future."
Investments into research and development to help lower emissions from agriculture was a positive move, Mr Martin said, as were efforts to improve education and training amid a major worker shortage.
"The future of agriculture will need a mix of skills and technology as we experience extreme weather events, the challenge will be in ensuring we don't accelerate the 'brain drain' from the regions to the cities," Mr Martin said.
"Improving regional connectivity and health services will be really important, and we would love to see better funding for the ABC in rural and regional areas as other media outlets consolidate due to cost pressures.
"Australians need to be able to make a good life in the cities and in the bush, and it is clear we will need to continue to advocate for farmers and rural communities to the government."
However, there was still the spectre of Foot and Mouth Disease on our doorstep that could undo all of this work - and Mr Martin said he was disappointed to see a lack of sustainable funding in the Budget.
"Despite the announcements of biosecurity funding in the Budget, we still don't have long-term certainty for this critical national defence," Mr Martin said.
"An FMD outbreak alone could cost the country $80 billion, and it would be devastating to the agricultural sector and the broader economy, but all we've really got are some recycled announcements and a few more detector dogs.
"We have warned the government this is like the Ruby Princess sitting off the coast, and they're still not prepared to commit to spending."
