“This is disappointing news, if LLS assets are to be sold then the revenue raised must go towards infrastructure to support farmers,” said NSW Farmers president Derek Schoen.

“Without strong commitments for additional LLS resourcing, we are not confident government will be able to roll out biodiversity reforms to farmers as promised on January 1, 2017.”

However, Mr Schoen said there are were some wins for regional communities. 

“The accelerated commitment of $15 million in new money to extend the Mobile Black Spot program is the one new initiative the NSW Government has done in this budget to increase farmer productivity.”

He said the budget also reiterates last year’s commitment of $6 billion from the $20 billion expected from the long term lease of the poles and wires.

“From this allocation, it is pleasing to see the Government continue to roll out commitments to planning for the Bell – Lithgow section of the Bells Line of Road, and planning for new sections of the Newell, in addition to continuing commitments to the Mitchell, Oxley, Golden Highways and smaller allocations to the Silver City Highway and Cobb Highway,” said Mr Schoen.

“We also welcome the long overdue investment in the Broken Hill water pipeline and the $25 million commitment to the Dubbo Hospital Upgrade and additional funds for Tamworth and Orange Base hospitals.

“Given the current issues surrounding crime in rural areas, we’re pleased to see $57 million for upgraded police stations, including at Gunnedah, Moss Vale, Deniliquin, Walgett and Coffs Harbour.

“The allocation of funds to maintain and upgrade grain lines, and $40 million dollars to reduce fire risks in national parks is also welcome,” Mr Schoen said.

A total of $159 million was allocated to LLS for the 2016 to 2017 financial year.

This was a fall of about $2.3 million from the previous financial year. 

Meanwhile, the budget forcast that revune generated by LLS could rise by $13 million within 12 months.

The Department of Primary Industries (DPI) budget was reduced from $1.05 billion last financial year to $940.6 million.