Tasmanian irrigators are cautiously excited about the Federal government's $500 million investment in water infrastructure.

The big spend announced in the Agricultural White Paper could pay dividends for the state, according to Tasmanian Irrigation head Chris Oldfield.

Mr Oldfield says $60 million of the $500 million dam-building scheme has been set aside for the second tranche of Tasmanian irrigation schemes. He says the Southern Highland plans are at the top of the list.

The National Water Infrastructure Development Fund is expected to provide opportunities for Tasmania to build on existing schemes and even expand into mini hydro plants for farms.

"It's not just about building new schemes, it's about making more efficient use of what we already have," he said.

Mr Oldfield said it could mean connecting existing schemes, such as the five schemes in the Coal River Valley or the Midlands scheme with the South Esk Scheme.

Tasmanian Irrigation says mini hydro schemes could help on farms that use water pressure from the irrigation schemes.

For many, the content of this week’s announcement was nothing new.

The Tasmanian Farmers and Graziers Association (TFGA) Rural Affairs Manager Nick Steele said the funding for Tasmanian irrigation, the Tasmanian Freight Equalisation Scheme (TFES) and changes to coastal shipping have already been announced.

He rated the document a six out of ten.

Mr Steele was not convinced that the help to farmers and transporters would last long.

"If you are in a drought you can only get three years of income support over a lifetime," he said.

"With climate change, droughts are happening more often so we believe that's not enough.

"It is great to have access to export in the TFES... it's how we can become more equitable in regard to getting goods across Bass Strait."