The Victorian Government has announced a major expansion of drought support, extending assistance statewide as farmers across the state grapple with rapidly deteriorating conditions following a failed autumn break.

The expanded package, backed by an additional $37.7 million in funding, will provide grants of up to $5,000 to farmers statewide for on-farm drought management improvements, plus financial counselling and mental health support. Farmers in severely affected south-west regions will receive increased payments of up to $10,000.

Premier Jacinta Allan said the devastating effects of drought were no longer confined by postcode or region. "It's impacting farmers across Victoria, which is why we're expanding support statewide," she said.

The announcement comes as weather data confirms the worst-case scenario projected at the start of May, with most of the state receiving just 20% or less of average expected rainfall over the past fortnight. The Bureau of Meteorology indicates these conditions will likely continue into June, leaving paddocks and dams dry with fodder prices through the roof.

Local dairy farmers attending the recent Dairy Australia 'Tactics for Dry Times' session in Inverloch highlighted the severity of conditions. Middle Tarwin farmer Chris Drew, who milks 600 cows, told the Sentinel Times that he is down to his last 30 days of feed and sourcing hay from as far as New South Wales and South Australia.

Stony Creek farmer Fay Sinclair also spoke to the Sentinel, saying she has already purchased three 40-tonne loads of hay at $400 per tonne and reduced stock numbers, selling everything not essential as her dams run low. Foster-area farmer Kevin Jones, milking 800-900 cows, reported his cattle eating well into feed supplies that normally last 12 months, despite his proactive approach to feed management.

About 80 farmers heard Bureau of Meteorology representative Andrew McLean confirm green vegetation in Bass Coast, Baw Baw and South Gippsland is close to the lowest levels recorded since 2001, with no definitive rainfall forecasts available.

The government has established a Drought Response Taskforce chaired by the Premier, including ministers, opposition MPs, farming representatives and regional leaders, which will meet next week to develop additional support measures.

The expanded support builds on the government's existing $29.4 million drought investment, with Agriculture Minister Ros Spence emphasising that "no drought-impacted community will be left behind."