ANXIETIES over water, climate change and drought are weighing on farmers' minds as the Rudd Government enters its second year.

That's what farm groups say despite giving the Government a reasonably positive report card for its first 12 months in office.

National Farmers' Federation president David Crombie said Labor had worked constructively with the NFF on a range of issues after some inevitable "teething problems".

"But we're getting impatient about lack of action on new phone technologies and irrigation upgrades, which are crucial for farmers and rural communities," he said.

Victorian Farmers Federation president Simon Ramsay said Labor had done "reasonably well" in the face of the global financial crisis and drought.

"They've been feeling their way, doing reviews, which is understandable," he said.

"But the honeymoon's over, it's time to put dollars on the ground."

In particular, the Government must start spending the $5-$6 billion allocated for irrigation investment.

"We're increasingly uncomfortable with the focus on water buy-back and lack of attention to irrigation upgrades," Mr Ramsay said.

Farmers were also anxious for details of new drought policies and the transition process, he said.

Australian Dairy Farmers boss Allan Burgess said many of Labor's plans were still "in evolution".

"We're not comfortable with its emissions trading plans, which don't protect efficient exporters like us," he said.

"And we're still waiting for the promised on-farm water upgrades."

A spokeswoman for Water Minister Penny Wong said Labor had committed $3.7 billion for upgrading water infrastructure and had agreed on a plan with the states to restore the Murray Darling Basin, including funding for infrastructure projects now being developed.

Outgoing Cattle Council of Australia president Bill Bray said the Government had done well, but beef farmers were still "anxious and alarmed" about the potential costs of an ETS.

Horticulture Australia Council chief executive Kris Newton said the level of consultation had been pleasing, and the industry was looking for major quarantine reforms next year.

But Australian Pork Limited said its relations with Labor had been "frustrating and unproductive".

The pledges to promote local produce and improve labelling were still not implemented, chief executive Andrew Spencer said.

A Productivity Commission inquiry had been a "disaster" and subsidised imports were still hurting.

Agriculture Minister Tony Burke said these subsidies were "outrageous" and while the lower dollar helped, trade policy must combat these distortions.

On climate change, the costs of inaction were greater than the costs of action, especially for farmers, he said.