United Dairyfarmers of Victoria Wannon branch president Bruce Knowles suggested not all of Moyne Shire was considered in the decision.

"You need to look at Moyne in two parts; around the coastal belt, there is no such rain problem," he said.

"But in the north farmers are dramatically affected by drought and they're starting reseeding programs because there's no moisture on the ground.

"Our supplement feed stock on farms have been depleted due to drought up north where we've driven our stocks up there and we're now seeing higher feed prices.

"At the moment there is concern that it's starting to get dry but that can change real quick. I've been in this region for over 20 years and I know each year's different.

"As far as the farming side is concerned we need more than normal rainfall up to Christmas. We can only hope things will settle and stabilise."

Mr Knowles said he believed the federal government funding could have benefited northern Moyne Shire farmers.

"I'm disappointed Moyne Shire gave the money back because I believe there are some areas that could have been targeted," he said.

"Our drought down here is not the same as the farmers up in northern Australia, but there are some areas within Moyne that have been impacted quite severely."

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Onfarm Western (Vic) dairy farm consultant John Kane has spoken with numerous northern Moyne Shire farmers about how they are suffering in the current climate.

"It's a tale of two zones in the district," he said.

"Up around Hawkesdale, The Sisters and Ellerlise, they've had a very tough one. They've been badly affected by drought and the evidence is in the extra purchasing of fodder.

"In analysis of the 2018/19 financial year, my clients in northern Moyne Shire are between 20-30 per cent down in pasture harvest which compared to the south, who are up 20-30 per cent.

"The 2018/19 financial year was the most contrasting season between the north and south of our district that I can remember, those to the north buying in large amounts of fodder and those to the south with silage left over.

"It's not about how much rain has fallen, but when it falls. The March-April period is critical as it slingshots farmers into winter. This year we didn't see this rain in the north."

Mr Kane has compared his clients from north and south areas of Moyne Shire and said this year had been very variable between zones.

"I have clients in both the north and south of Moyne and the last two autumns have been quite severe the further north you go," he said.

"It's going to take most of this year for some farmers to catch up on their financials.

"I think the decision to give the money back was hastily made."

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