The Victorian Government has expanded its programs to help farming communities manage the impacts of ongoing dry conditions, with new funding and water infrastructure investment forming the centrepiece of its latest measures. The enhanced Victorian drought support package now exceeds 146.5 million dollars and is intended to strengthen resilience across rural industries and towns facing increased climate pressure.
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How Victorian drought support will help farmers prepare for dry conditions
At the latest Drought Response Taskforce meeting, Minister for Agriculture Ros Spence confirmed that farmers across the state will receive a second one-on-one Farm Advisory Service consultation with technical specialists. These consultations will help farmers improve water and feed budgeting, pasture re-establishment, cash flow planning, and business management.
Spence said the expanded support will help farmers navigate the difficult months ahead.
“The expanded Drought Support Package means farmers will be better prepared over the approaching months with assistance on water and feed budgeting, pasture re-establishment, cash flow, wellbeing and business planning,” she said.
Community wellbeing programs will continue through a new round of Look Over the Farm Gate grants, which open in February 2026 and will be delivered by the National Centre for Farmer Health. Over 100 Look Over the Farm Gate events have been held across Victoria, supporting more than 13,000 people during previous dry periods. The Rural Financial Counselling Service’s wellbeing counsellor for the south west region will also be extended until December 2026, offering free support alongside business and financial counselling.
Water access forming a central pillar of Victorian drought support
New water infrastructure forms a key part of the Government’s drought response. Work will soon begin on the Mininera Pipeline, a major expansion of the East Grampians Rural Pipeline that will secure water access for about 200 rural properties and 10 towns in the Ararat, Northern Grampians and Pyrenees local government areas. The project is backed by 15 million dollars from the Victorian Government and 15.6 million dollars from Grampians Wimmera Mallee Water.
Minister for Water Gayle Tierney said reliable water access provides confidence for both farmers and communities.
“Reliable water supply gives farmers and communities the confidence to plan, protect their businesses, and stay strong through dry conditions,” she said.
Advocacy continues for matched Commonwealth funding to deliver the full proposed scope of the expansion. The project will play a significant role in strengthening long-term regional water security, reducing dependence on carted water and rainfall-dependent catchments during extreme dry periods.
Helping farming families maintain stability during drought
The Victorian Farmers Federation will receive $ 677,000 over two years to expand its financial capability services for drought-affected farmers. The funding will help farming families maintain ownership of homes and land during prolonged income losses.
Minister for Consumer Affairs Nick Staikos said the support will be a long-term investment.
“By boosting the Victorian Farmers Federation’s financial capability services, we’re investing in a program that will help support farmers through the drought and into the future as well,” he said.
Two financial capability staff will provide outreach and education across the state. VFF President Brett Hosking acknowledged the ongoing financial burden on farm businesses.
“We know the financial impact of drought doesn’t end when it rains. Farmers across Victoria have accrued significant losses and will need all the support they can get as they rebuild their businesses. We thank the Government for this support,” he said.
Strengthening regional business resilience alongside Victorian drought support
To support local economies, small businesses in drought-affected regions will have access to a 600,000 dollar grant program co-funded by the Bendigo Bank Community Enterprise Foundation and Regional Development Victoria. Grants of up to 50,000 dollars will assist councils, chambers of commerce and trade groups in eligible LGAs to deliver projects that boost local spending and economic activity.
Minister for Regional Development Jaclyn Symes said small businesses are also facing pressure.
“We know that drought is putting real pressure on small businesses that rely on local farms and producers to keep their doors open,” she said.
Bendigo Bank CEO Richard Fennell said the partnership reflects a commitment to community recovery.
“With the guidance of our philanthropic arm, the Community Enterprise Foundation, we are pleased to partner with Regional Development Victoria and continue supporting businesses and communities in drought-impacted areas of rural and regional Victoria,” he said.
Why Victorian drought support remains essential
Victoria’s farming communities continue to face tough seasonal conditions, with climate variability intensifying the impacts of dry periods. The expanded Victorian drought support package combines technical advice, financial assistance, community wellbeing services and water infrastructure upgrades to help farmers and regional businesses stay resilient. The Government said the measures are designed to provide immediate assistance while strengthening long-term adaptation and regional stability.