Drought hardship grants will be made available to eligible farmers statewide, Premier Jeremy Rockliff has said.
The hardship grants were first promised to King Island residents, then those on Flinders Island, but a decision has been made to make them available to all Tasmanian farmers
Grants of up to $5000 will be available to livestock producers who can demonstrate hardship as a result of increased feed costs, reduction in the value of livestock, recovery costs of pasture, restocking and other farm expenditure caused by drought.
Mr Rockliff said it was clear that many areas of Tasmania were experiencing unseasonably dry conditions.
"The government will also provide a grant to the Rural Relief Fund of $500,000 for them to administer grants of up to $2500 per household," he said
"This funding will be available more broadly across agricultural sectors, for rural families experiencing hardship due to drought or extreme unseasonably dry conditions.
Primary Industries Minister Jo Palmer, said that some parts of Tasmania had had the lowest February rainfall on record.
"Some parts of the east and north had less than 20 per cent of their typical February rainfall totals," she said.
Labor leader Rebecca White said waiting for an election campaign to announce drought relief was shameful.
"Jeremy Rockliff's announcement of extended drought relief for Tasmania's farmers is welcome, but the announcement four days before an election is a cynical exploitation of the hardship they've been experiencing for weeks," she said.
Guidelines for hardship grants will be made available on the State Growth Department's website soon.
Tasmania's peak body for farmers says the government's emergency drought relief announcement will lift farmer confidence and the morale of the broader agricultural sector.
TasFarmers president Ian Saur expressed gratitude for the decision by the government to extend hardship grants originally announced for King and Flinders islands to encompass entire the state.
"It's a pivotal moment where our united voice is being heard and acknowledged," Mr Sauer said.
"They have not only consulted with TasFarmers, but most importantly of all, they are listening to our farmers who are feeling it.
"They have reacted quickly with this announcement to make the grants scheme more widely available, and they have recognised the social side of the issue."
He said TasFarmers was working to identify the regions needing the most support and which were facing a significant impacted, so it could put forward the best options to the government for their consideration.
"TasFarmers has now redeployed a person in the office to be the first point of contact for members on the drought," he said.
"TasFarmers has been contacting members for the last two days to discuss their needs.
"With feedback from our members, will be reengaging with the government and the department next week."