The government also announced the appointment of a new drought response taskforce, which will include City of Greater Shepparton Mayor Shane Sali.
Cr Sali will be representing Regional Cities Victoria, which he chairs.
“This funding is about ensuring that no drought-impacted community is left behind, providing immediate relief to farming families across our state,” Agriculture Minister Ros Spence said on Friday, May 30.
After a dry start to the month, over the past two weeks most of the state received just 20 per cent or less of the average rainfall expected in May.
The latest reporting from the Bureau of Meteorology indicates these conditions are likely to continue into June.
These conditions have left paddocks and dams dry, with fodder prices doubled.
Due to these worsening conditions, the government will deliver a new and expanded drought package — supported by an additional $37.7 million in funding.
Ms Spence said this would ensure farmers across the state were able to access grants of up to $5000 to support on-farm drought management improvements, in addition to financial counselling and mental health support.
As part of its drought package announced earlier in May, the government said farmers in 24 drought-impacted local government areas would pay a reduced Emergency Services and Volunteers Fund contribution — capped to the same amount they paid in 2024-25.
This will now apply across the state.
The taskforce will be chaired by Premier Jacinta Allan and provide advice on further help for farmers, as well as broader support for impacted businesses and communities.
The taskforce’s first meeting will be held in the first week of June, with a further package of support to be delivered as soon as possible.
Cr Sali said the leadership group — led by the mayors and chief executives of the 10 largest cities in regional Victoria — had provided strategic advice to government, ministers and industry stakeholders for the past 25 years.
“When we are at the table, we are a direct report for our communities, our businesses and the industries that the state’s economy relies on. I have called an extraordinary meeting of RCV mayors for Monday to discuss the priorities we will take to next week’s inaugural taskforce meeting,” Cr Sali said.
“While we acknowledge today’s announcements from the Victorian Government, including the $37.7 million statewide drought package and the ESVF reprieve for primary producers, we are acutely aware of impacts from current policies for rural and regional Victoria.”
He said the group would continue to advocate for the return of the Regional Jobs and Infrastructure Fund.