Corangamite Mayor Matt Makin and Colac Otway Mayor Lyn Russell have been working with local government leaders across Australia to form a rural lobby group.

The group will lobby the federal and state governments to boost road funding in the south-west to meet increased usage by heavy freight vehicles.

"The message from all the delegates was loud and clear - our farmers are feeding the Australian population and the Government must acknowledge the stress that is having on our local road networks," Cr Makin said.

"It is critical that the first kilometre of roads in the national supply chain is up to scratch so that farmers can stay competitive.

"As a lobby group we're saying to the Government that its model for local road funding needs to recognise the agricultural production of our council areas."

Colac Otway Shire was one of five councils represented on an interim group charged with preparing a draft constitution and action plan for the lobby group. The other councils were Moree Plains Shire (NSW), Naracoorte Lucindale Council (SA), Gwydir Shire (NSW) and Tablelands Regional Council (Queensland).

Cr Russell said the 18 councils represented at this week's Canberra meeting to form the lobby group had all experienced similar issues with roads upkeep.

"All councils represented had a large network of unsealed rural roads and not enough funding to maintain them to acceptable standards," she said. "We hope that this new group will be able to achieve better and more sustainable road funding from the state and federal governments to enable us to close our maintenance gaps."

Cr Russell said there was no guarantee the current level of funding under the Federal Government's Roads to Recovery program would continue beyond its expiry date of 2014.

Meanwhile, Premier John Brumby acknowledged the dangerous condition of the Princes Highway west on Fairfax Radio this week.

He said the number of motorist safety warning signs reflected the treacherous nature of the region's main motorway.