Acting prime minister Michael McCormack has refused to be drawn into a debate over the need for more sustainable farming practices.
The Nationals leader says farmers know they need to protect their land.
"Because if they don't, well they won't have it," he told reporters in Darwin on Sunday.
"They won't have it to grow crops, they won't have it to raise stock in the future.
"We don't tell farmers what they should be farming, how they should be doing it and what they should do in the future. That's the Labor way."
Mr McCormack's comments come after Labor's agriculture spokesman Joel Fitzgibbon said policy should be developed to help farmers transition to better practices with increased water efficiency.
Mr Fitzgibbon said many farmers were moving south from drought-stricken areas in NSW and Queensland to more welcoming conditions.
"Our historic settlement pattern was one which rolled out in a different climatic environment," he told Sky News.
"And sadly, there will be some areas where the farming practices of old won't be sustainable into the future."
"We live on the driest inhabited continent in the world and it's getting drier. And all the science says it's going to get drier into the future."
Draft laws setting up the government's proposed $4 billion natural disaster kitty passed the first hurdle of the parliament last week.
They will be scrutinised by a Senate committee before receiving the final tick of approval from the upper house in mid October.
Through the fund, $150 million would be available each year to support communities facing a significant or catastrophic event.
Meanwhile, Queensland farmers in the drought-hit town of Warwick who risk running out of drinking water by December are set to receive a delivery of almost two million litres on Monday.
Australian Associated Press