The federal government has axed the $1.5 million Community Food Grants program, which would have seen funds invested in projects including farmers markets, food co-operatives, community gardens and city farms.
According to the ABC, grant applicants were advised by letter that the program had been reviewed and it was decided not to continue with it because of the “tight fiscal environment.”
The funding was announced by the former Labor government in May 2013 as part of the National Food Plan.
Australian Food Sovereignty Alliance’s national co-ordinator, Nick Rose, said the Community Food Grants program, which had attracted 364 applications, represented the first time the federal government had officially recognised the community food sector.
“And really the justification that it's in any way going to make any difference to the total government Budget bottom line is quite frankly ludicrous. We're only talking about $1.5 million," he said.
"Really, it's quite a petty and almost spiteful slap in the face to people who have a different vision, different set of values about what food and farming can mean for this country."
However a spokesperson for the Department of Agriculture said the government remains committed to Australia’s agriculture industry.
"This is why the government is developing a White Paper Agricultural Competitiveness, which will drive long-term agricultural policies and ensure Australia's agriculture sector remains a significant contributor to the national economy and local communities,” the spokesperson said.