The prospect of making the Princes Highway a Roads of National Significance between Colac and the state border was raised with Mr Abbott, a re-designation which would open up federal funding for the region's main thoroughfare.

Mr Abbott acknowledged that Wannon MP Dan Tehan had raised the subject with him in one-on-one conversations but the Prime Minister did not specify if and when the re-designation would occur.

"Dan (Tehan) here is obviously keen to see the Princes Highway duplicated beyond Colac," Mr Abbott said. "You look at these ears (PM pulls his own ears), they get chewed occasionally and Dan, you've got your bite marks in there, haven't you mate?

"This is a government that is serious about Roads of National Significance. Obviously the Princes Highway is a very important national road as well as a very important local road.

"We've funded the duplication of the highway from Geelong out to Colac and we're also putting a fair bit of money into the Western Highway coming west of Ballarat. So we’re doing a lot of work.”

Saturday’s comments at the launch of the Agriculture White Paper follow on from Mr Abbott’s pledge in 2011 to give Auslink status to the Princes Highway west if the Coalition won government.

Auslink has morphed into the Roads of National Significance scheme in the intervening years.

Moyne Shire mayor Colin Ryan welcomed Mr Abbott’s comments and said it was pleasing the Princes Highway was on the federal government’s radar.

“Mr Abbott in the past has referred to the importance of the Princes Highway to the Western District and about funding in the future,” said Cr Ryan, who is also chairman of the Great South Coast Group.

“It sounds promising. Making the Princes Highway a Road of National Significance would open up opportunities for the funding we need.”

The Prime Minister took part in an early-morning run along the Warrnambool foreshore on Saturday before giving the keynote address at the Agriculture White Paper launch in Woolsthorpe.

Farm leaders particularly welcomed a tax reform contained in the paper that will allow farmers to use Farm Management Deposits as business loan offsets, reducing interest costs estimated at up to $150 million a year, from July 2016.

“This is a plan for the future,” Mr Abbott said. “This is a report to meet the needs of the world literally and metaphorically hungry for food.”

Agriculture Minister Barnaby Joyce said the White Paper was not just tailored for farmers but also developed for businesses reliant on the agricultural sector.

He said regional cities such as Warrnambool would benefit from the specified financial measures.