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Victorian Farmers to Receive 40% Drought Relief Rebates Amid Prolonged Dry Conditions

In a much-needed boost for struggling agricultural communities, the Victorian Government has announced a new 40% rebate scheme to help farmers cope with the ongoing impact of drought across the region.

The initiative, part of the state’s expanded Drought Relief Support Package, will offer eligible farmers a rebate of up to 40% on a range of essential farm-related costs  including water infrastructure, feed transport, pasture recovery, and irrigation system upgrades.

Immediate Relief for Rural Communities

Agriculture Minister Ros Spence said the scheme is designed to provide immediate financial relief to those who have borne the brunt of one of the driest seasons in recent history. “Victorian farmers have shown incredible resilience, but we know they can’t do it alone,” she said. “These rebates will reduce the financial strain and support long-term recovery efforts.”

According to government data, over 65% of Victoria’s agricultural zones have experienced below-average rainfall for more than 12 consecutive months, severely affecting crop yields and livestock health.

What’s Covered Under the Scheme

The 40% rebate will apply to:

  • New or upgraded on-farm water storage systems
  • Freight costs for fodder and water
  • Pasture renovation and reseeding
  • Installation of drought-resilient infrastructure such as pipelines, troughs, and tanks
  • Soil improvement measures to boost future productivity

Eligible farmers can apply through Agriculture Victoria, with rebates capped at AUD $25,000 per farm business. Applications are open until March 2026, or until funds are exhausted.

Positive Response from the Farming Sector

The announcement has been widely welcomed by farming organizations and rural leaders. Fiona Simson, President of the National Farmers’ Federation, praised the state government’s proactive approach. “This kind of practical support is exactly what farmers need — targeted, timely, and tailored to on-the-ground realities.”

Local farmer Geoff Marshall from northern Victoria said the rebate would help keep his sheep operation afloat. “Every dollar counts right now. Getting nearly half back on essential upgrades will make a real difference.”

Call for Long-Term Drought Planning

While the rebate scheme has been applauded, some experts and advocacy groups are urging state and federal leaders to focus more on long-term drought adaptation strategies, including climate-resilient farming systems and better water management policies.

The Victorian Government has indicated that more drought preparedness measures, including farmer training programs and regional water planning projects, are in the pipeline.

A Lifeline During Tough Times

As drought conditions persist across much of southeastern Australia, the 40% rebate plan offers hope to Victorian farmers working to keep their businesses — and communities — alive. Officials say it’s a step toward building a more resilient and sustainable agricultural future for the state.

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