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Small Business Minister John Banks made the announcement yesterday.
"SMEs are the lifeblood of our economy and the Small Business Development Group plays an important role providing the small business voice in business policy development," Mr Banks said in a statement.
Mrs Ludeman farms with her husband, Grant Ludeman, near Enfield.
She is the chairwoman of the Southern area of the National Party and is also a columnist and blogger.
She represents Otago-Southland farming on the new development group.
Other appointments are: Tenby Powell (convener), Auckland, equipment hire; Rhonda Kite (deputy convener), Auckland, digital media; Robert Khan, Auckland, broadcasting; Jonathon Flett, Christchurch, manufacturing; Mitchell Pham, Auckland, IT; Jeremy Ward, Wellington, transport/hospitality; Neil Pluck, Rakaia, agricultural machinery; Matthew Jones, Christchurch, building services; Sonia McConnachie, Auckland, consumer marketing; David Hiatt, Canterbury, tourism; Adrienne Pierce, Hawkes Bay, business services.
Members have been appointed for a term of three years from February 2013.
Mr Banks said the group provided the Government with a critical perspective that it could not get from policy or academia.