Why local councils are saying the current drought relief is not enough

Mayors from the Southern Grampians and Corangamite shires have criticised the Victorian Government’s latest drought support package as inadequate, warning that “partial measures” won’t save farmers facing soaring feed costs and deepening financial strain.

Southern Grampians Shire’s Mayor, Dennis Heslin, said the package “fails to adequately address” the mounting financial pressure on farmers in Western Victoria.

A drought support package of $15.9 million, announced this month by Agriculture Minister, Ros Spence, would “help more farmers and communities over winter”.

The package will continue for the existing 11 Local Government Areas across southwest Victoria, including the Corangamite and Southern Grampians shires, and be expanded to another 13.

This new $15.9 million package, announced on May 15, extends the $13.5 million drought support package announced in September 2024.

These funds will be distributed via the On-Farm Drought Infrastructure grants program.

Farmers can apply for grants of up to $5,000 for on-farm improvements, including water infrastructure upgrades, stock containment areas, grain and fodder storage and drought management tools such as soil moisture monitors and weather stations.

Demand for real results

“Instead of real, tangible relief, the state government is offering them partial measures that fail to address the reality of what they need to keep their businesses and families afloat,” Heslin said.

The mayor said while grants are helpful, wellbeing support “won’t buy feed for stock”.

“The Victorian state government must do better. The South Australian farmers just over the border have access to a $73 million dollar relief package from the SA government and the Queensland government are supporting their rural communities impacted by flooding with $160 million in relief funding.”

Multiple councillors echoed the mayor’s sentiments at this month’s council meeting.

Councillor Katrina Rainsford questioned why the state hadn’t declared the region to be in drought.

"It's really tough there, and we need to look after our farmers and look after our communities that depend on [farming] income," Rainsford said. 

Councillor Adam Campbell said farmers are facing hay price increases of "100 [dollars] per tonne” when ordering hay deliveries to their properties. 

According to the most recent Australian Fodder Industry Association hay report, pasture hay has increased $30 in a single week, to $320 - $420 a tonne.

A report from the same time last year listed pasture hay at $220 - $290 a tonne.

"Cattle sales have been through the roof around this area, because people just can't afford to feed their stock," Campbell said.

Councillor Helen Henry urged residents to contact state MPs about the “lack of support” following the region’s recent fires and the dire need for drought declaration.

Well-intentioned, ill-informed

Corangamite Shire Council mayor Kate Makin welcomed the package, but also described it as “inappropriate”.  

She said the initial $13.5 million drought support package announced in September was a good investment in future drought resilience, but didn’t address immediate needs.

“We need to have serious discussions about food security, reduction in milk production [due to a lack of available feed for dairy cattle], and long-term impact,” she said via statement on Friday.

“Agriculture is the single largest sector in Corangamite, generating over $800 million a year and providing a third of the jobs in the shire.”

Makin called on the federal government to step in.

“From experience learnt during the COVID-19 pandemic, temporary measures like federal JobKeeper and JobSeeker were very successful in keeping businesses afloat and people in work,” she said.

“A FarmKeeper scheme based on a similar model is needed. Without that support we will likely see the collapse of many farming enterprises and their suppliers, contractors and other related businesses in drought-affected areas.”

In October 2024 the state government released its Victoria's Drought Preparedness and Response Framework. 

The wording on the state government’s website for the framework notes that the “Commonwealth and Victorian governments do not make drought declarations”.

This means that while the state and federal governments can make decisions in response to drought, they will not make official drought declarations.

Instead, this framework adopts a “flexible approach” to drought support that relies on “seasonal, economic and social information” to focus on measures that should help “build community preparedness”. 

The site also suggests drought is a “business risk” that farmers, communities and business owners should “actively prepare for and adapt to”.

Premier Jacinta Allan will visit the southwest region in coming weeks and is expected to address the region’s drought concerns.

Image credit: Southern Grampians Shire Council