Premier Daniel Andrews announced the new fund on Sunday, which would use revenue from selling a long-term lease on the Port of Melbourne. 

The money will support investment in agricultural infrastructure and supply chains to boost productivity, increase exports and reduce costs so farmers, businesses and industries can stay competitive.

It will be available for practical projects and programs that benefit the agriculture sector, including transport, irrigation, and energy projects, as well as skills development programs and market access campaigns. 

Eligible applicants will include farm businesses, industry and agribusiness organisations, asset owners such as water authorities and local government. 

Agriculture Minister Jaala Pulford said the fund was about putting agriculture back at the heart of Victoria’s economic development.

“This is so our farmers and industries can grow and prosper from paddock to port,” she said.

Victorian Farmers Federation president Peter Tuohey said the federation had raised concerns with the government to ensure the sale of the port lease delivered equity, access and competitive pricing for food and fibre exporters.

“The federation has given its support to the sale on the condition the state government ensures theses issue are addressed and the port remains competitive,” he said.

“The agricultural sector needs a cost competitive port and supply chain that puts Victorian farmers ahead of our interstate and overseas competitors.

“A competitive port in combination with this $200-million investment in rural infrastructure will help deliver a competitive supply chain that keeps us ahead of the game.”

Victorian politicians will debate Port of Melbourne lease in parliament from Tuesday.