RESEARCH and development projects need more funding in next week's NSW budget to boost agricultural production, farmers say.  

The NSW Government will hand down its first budget this Tuesday.

NSW Farmers president Fiona Simson believes the budget needs to increase investment in rural research and development from $80 million to $120 million a year.

"Farmers are under intense pressure to produce more with less. Innovative farming is the best way local farms can meet the growing demand for food," Ms Simson said.

The lobby group today called for the implementation of the Young Farmers Finance Scheme to help farmers to set up and run businesses.

Ms Simson was confident that "innovative farming" and financial support would help alleviate increasing stress felt by farmers.

She said Department of Primary Industries' services were crucial and she hoped rumours of a funding cut were wrong.

NSW Farmers have also asked the government to recognise the need for extra resources to help implement the Strategic Regional Land Use Policy, to avoid regional conflicts between the coal mining, coal seam gas and agricultural sectors.

"An industry liaison officer is needed to help communities understand their rights and obligations when dealing with mineral and coal seam gas companies," Ms Simson said.

"We've been inundated with calls from landholders requesting information which mining companies and the government have been hesitant to provide. 

"The Bligh Government has provided AgForce with a $3.2 million grant to meet the growing demand for information at the community level," she said.