Dairy Farmers Victoria calls for fresh Victorian Government drought assistance

Dairy farmers say a fresh round of drought assistance is needed, following their annual conference last week. Here’s why.

Council rates relief and water carting assistance have been nominated as practical measures to aid dairy farmers battling persistent drought conditions.

Dairy Farmers Victoria held their annual conference in Melbourne last week, with concerns over the growing financial strain of drought, not just in southwest Victoria but increasingly in other parts of the state.

DFV president Mark Billing said Victoria’s drought zone was expanding by the month and current state government assistance would need to be topped up and adapted to changing circumstances.

In September 2024, Premier Jacinta Allan confirmed a $13 million package aimed at southwestern Victoria following a campaign by DFV, the United Dairyfarmers of Victoria and the Australian Dairy Farmers organisation.

The bulk of the funding – $12.1 million – went towards a water infrastructure co-contribution grant program, while the remainder was apportioned to financial counselling and mental health support.

“While the initial round of state government assistance was welcome, seven or eight months have passed by and the drought has worsened in southwest Victoria and expanded elsewhere,” Mr Billing said.

“There are parts of Gippsland and northern Victoria that are either in drought or on the cusp of drought.

“Rates are an obvious expense for farmers and many rural councils are struggling with revenue – having the state government offer some sort of assistance there would provide noticeable relief.

“Fodder is a more problematic area for the government to get involved in, because subsidies often distort prices and ultimately fail to provide relief in the medium to longer term.

“But covering the costs of charities or charitable hay drives would be also something worth examining too. We’re keen to discuss further with the Agriculture Minister and other leaders within state government, as we have in the past.”

The Weekly Times asked the offices of Victorian Agriculture Minister Ros Spence and Natural Disaster Recovery Vicki Ward whether further support would be offered by the state government to drought-hit farmers, but they did not respond in time for deadline.

Prime Minister Anthony Albanese visits Bar Italia following his election victory. (Photo by Asanka Ratnayake)

Australian Dairy Farmers president Ben Bennett said with Prime Minister Anthony Albanese re-elected over the weekend, the federal government also had a role to play in offering financial relief to farmers.

Mr Albanese celebrated his thumping electoral victory in Sydney on Sunday by serving ice cream to supporters in front of television cameras.

“We’re glad the Prime Minister enjoys ice cream – we’d be more than happy to show him where it’s made and while he’s here, see the drought for himself,” Mr Bennett said.

Federal Agriculture Minister Julie Collins, Rural Assistance Commissioner Peter Tuohey and Agriculture Victoria’s top bureaucrats all conducted personal visits of Mr Bennett’s farm, located between Camperdown and Colac.

With the drought contained to southwest Victoria and southeastern South Australia, the national milk pool in March 2025 was steady, only down 0.4 per cent on March 2024.

However, in southwest Victoria, the same month-on-month metric highlights a production cut of 3.4 per cent or 3.69 million litres.