The government of Victoria will spend AU$1.5 Million to help dairy farmers struggling because of destructive cuts to the farm gate price of milk paid by Murray Goulburn and Fonterra.

"This is a real kick in the guts for our dairy farmers and we expect industry to do the right thing and to partner with us to provide the structural support, the transition support, to help our dairy farmer families move through what is a very, very difficult period," said VIC Premier Daniel Andrews.

The state government has already established a task force to find ways to support those in the industry.  But today, officials announced the $1.5 Million assistance package.  More than $900,000 will go towards extra counseling services and Lifeline funding.  Another $300,000 will be used in teh form of grants to communities to help farmers through emotional and financial difficulties.  And up to 750 people will get mental health and first aid training.

Some Australian banks are putting together short-term relief packages to help farmers.  ANZ will allow dairy farmers to apply for a number of measures such as a three-month suspension of loan repayments, waived loan restructuring fees, and allowing some dairy producers to put more on their business credit cards.  WestPac is delaying potential foreclosures; National Australia Bank, Commonwealth Bank, and Rabobank say they'll work with hard-hit dairy farmers on a case-by-case basis.