There was a spike in backpackers turning to farm jobs in mid-2020 when coronavirus restrictions caused work to disappear in hospitality and retail industries and the federal government excluded working holiday visa holders from support packages.

But now farms are again facing shortages as customer-facing jobs return and many remaining backpackers have completed the regional work necessary for their visas.

Warrnambool Beach Backpackers co-owner Geoff Morris said the hostel was advertising jobs for 15-to-20 dairy farms in the region, after worker availability dived in November.

"Usually it's like a revolving door. One backpacker finishes and another starts. There is no one. The door was just shut. Farms have just tried to battle on," Mr Morris said.

"If I went back 12 months we were probably getting on average up to half a dozen people a day ringing us looking for work. Now we can't get one.

"They were in Victoria over the shutdown, as soon as they were able to they left and went to other states."

The hostel had about 25 backpackers working on farms in the lockdown period, but now it is mostly filled with domestic holidaymakers on summer getaways.

Mepunga West dairy farmer David Haberfield has been unable to fill two farmhand jobs usually done by backpackers for the past six weeks.

"We are having trouble with labour, it doesn't matter if it's backpackers or local labour," he said.

"Generally we would run one-to-two backpackers all the time. We have none."

He is now trying to secure workers before calving season in February.

"I tried two or three of the employment agencies in Warrnambool, they basically laughed and said 'good luck.' We have just been trying Facebook and Gumtree," Mr Haberfield said.

"We haven't had many apply. We might put out five-or-six ads and get one person."

The federal government has since November offered $6000 to people who relocate to regional areas to take up short-term agricultural work.

But Koroit dairy farmer Oonagh Kilpatrick feared the incentive was not enough.

"In the dairy industry we have to continue to present ourselves in a way that attracts the staff we are looking for, that's our side of the bargain," Ms Kilpatrick said.

"But from a financial point of view then if there are going to be incentives they have to be worthwhile.

"I just don't think it was enough."

Under the Pastoral Award 2020, farmhands must earn a base wage of at least $19.84 an hour at level one, and $24.81 an hour at the highest level.

Meanwhile, an Ernst and Young report predicted the horticulture industry would be 26,000 workers short during six months from October this year, with labour shortages peaking in March 2021.

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