This year's Budget papers report the effects of ongoing food price volatility, serious oil price fluctuations and falls in global economic growth that have all been devastating for the poor.

There are close to one billion malnourished people globally, according to the United Nations.

The Federal Government will spend about six per cent of the total international development aid funding on rural development, estimated at $230 million in the coming financial year.

Over the next four years, increased global food production initiatives will cost about $464m.

The funding will be invested in programs to increase agricultural productivity, better functioning of rural markets, trade reform, improved fisheries management and removal of barriers to rural private sector growth.

In 2009-2010 programs promoting food security through rural development will be expanded in East Asia, South Asia and the Pacific.

Support for increased agricultural productivity and social protection programs in Africa will be a focus of increased Australian assistance.