National Farmers' Federation president Fiona Simson has backed a senior bureaucrat's warning against subsidies to help drought-affected farmers.
Outgoing Productivity Commission chair Peter Harris criticised subsidising the movement of feed around the country, saying it leads to higher costs.
He said past handouts to drought-stricken Australian farmers have done little to improve prospects for future dry spells.
The NSW government made $20,000 freight subsidies available for farmers as part of a $500 million drought relief effort.
But Victorian producers raised concerns the move has distorted the market and created an uneven playing field.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Ms Simson called for government backing with services and other support, rather than handouts.
"Australian agriculture is one of the least subsidised agricultural industries in the world," she told the National Press Club in Canberra.
"We saw what subsidies did to our car industry."
She took aim at the misconception farmers relied on governments to solve drought.
"Many farmers, including me, take offence of the portrayals of the broken down, hand out, dependent farmer profile peddled by many members of the media," Ms Simson said.
Agriculture Minister David Littleproud said contentious drought polices like interest rate subsidies disappeared years ago.
But he stressed the need for the Farm Household Allowance, a welfare payment for drought-stricken farmers.
"Farm Household Allowance puts tucker on the table for farm families struggling to make ends meet and I absolutely back it," Mr Littleproud said.
Ms Simson said she was still trying to get her head around former Nationals leader Barnaby Joyce's new role as special drought envoy.
"I would be hopeful he would convey any policy advice or policy ideas that he has to the minister's office," she said.
Ms Simson was lukewarm on Mr Joyce's proposal to divert environmental water from the Murray-Darling river system to help grow fodder for struggling farmers.
"What we're not in favour of is distorting markets and getting involved in markets that are already operating," she said.
"We might end up on the very top of a very slippery slope and I think we would want to be very cautious about that."
But she backed Prime Minister Scott Morrison's idea that drought assistance could extend to helping families with private school fees.
Ms Simson said some remote farming families had no choice but to send children to costly boarding schools, calling on independent schools to make allowances for the drought.
