Minister says rate help would offer immediate drought relief

Read more: Wind compounds Central Gippsland's woes

Mr Littleproud has also asked that drought affected farmers paying leasehold to state governments be forgiven those payments.

"One of the things farmers constantly raise with me is whether the state government can relieve them of their rates," Mr Littleproud said.

"This would provide immediate, practical relief to communities hurting from drought.

"Rates are often a huge expense for farmers, and with no income coming in, paying them can be very hard."

He called on state governments to pay the rates of farmers and small businesses to councils, who were also struggling with drought.

"The Federal Government is investing $7 billion into drought all up and it's time the states helped farmers with rates.

Meanwhile, Federal Nationals Gippsland MP Darren Chester says he's hopeful some of the eligibility criteria, around Farm Household Assistance, can be relaxed.

"My specific concern is around farmers who receive off farm income," Mr Chester said.

"It's a consistent message I've received from farmers in Gippsland that many people need to work off-farm to establish their business but then they find it very difficult to receive any government assistance."

Mr Chester said it was particularly difficult for young farmers, starting out, who were the future of the industry.

"They need the certainty of off farm income to secure loans and invest in their farms."

He said Mr Littleproud was well aware of his concerns and had discussed the issue, during, and after, recent visits to Gippsland.

"I'm hopeful that we can make some changes to FHA to reduce red tape and relax some of the eligibility criteria."