Farming future bright: Abbott

Ambitious young farmers and valuable new free-trade agreements mean Australia's agricultural sector is looking bright, Tony Abbott says.

But the prime minister is yet to reveal how much of a helping-hand those on the land battling drought conditions can expect to see in Tuesday's budget.

Visiting northern Tasmania on Thursday to open the 33rd year of Agfest, an agricultural expo, Mr Abbott praised the efforts of organising group, Rural Youth.

"It's a great sign of confidence by young farmers in the future of agriculture, not just here in Tasmania but right around the country," he said.

He praised Tasmania's agricultural sector in particular, which generates more than $2 billion a year in combination with forestry and fisheries.

"That's going to improve in the months and years ahead thanks to the new free-trade agreements we've got with our major markets in Asia," Mr Abbott said.

"What these new agreements mean is that our agricultural exporters will be able to compete on a more than level playing field for the first time in years."

But with parts of Australia having been drought declared for several years, and more than 75 per cent of Queensland in drought, farmers will be looking to Canberra for assistance in the coming 12 months and beyond.

Mr Abbott said his government will reveal details of its agricultural assistance at the weekend.

"I want Australian farmers to have the best possible opportunity to compete and to prosper," he said.

"This government has done a lot, but certainly there is always more to do and you will be seeing more from us over the next few days."

While walking though the hundreds of exhibits, Mr Abbott purchased a few items including an Australian-made pair of gumboots.

"I've just been given a bottle of Tasmanian whisky and I am absolutely confident that it will be better then anything that's done in Scotland," Mr Abbott said.

Farmers warned the government producers would exit the industry if it didn't make significant changes to its drought policy and fix the "bureaucratic logjam".

The National Farmers Federation wants to make it easier for farmers to qualify for cheaper loans.

"Producers across large tracts of NSW and Queensland are facing their third year without income as a result of drought, and federal government support is falling short for those in need," president Brent Finlay said in a statement.