Minister for Agriculture, Tony Burke, said the independent National Rural Advisory Council (NRAC) had reviewed the areas, which are due to expire next month.

The committee recommended Exceptional Circumstances assistance be extended for two-thirds of the areas and found it should not be extended for one-third of the areas.

Mr Burke acknowledged many farmers continued to face difficult conditions across Australia.

"The Government recognises that the drought continues to place extraordinary pressure on many farming families across Australia," Mr Burke said.

"We also acknowledge the current system is not working for farmers and are working to finalise details of the new drought support system.

"Under the current system, we wait until farmers are in crisis to step in an help them.

"We want to help farmers before the next crisis hits so they can better face the challenges of the future."

*NRAC’s recommendations on the 34 EC declared areas can also be found at www.daff.gov.au/agriculture-food/ drought/ec

Victorian areas in which EC will continue until 31 March 2011:

• Central Victoria North Revised area (including towns of Bendigo, Castlemaine and Maryborough)
• Central Victoria South Revised area (including towns of Bacchus Marsh, Daylesford, Geelong, Kyneton, Sunbury and Whittlesea)
• Mallee-Nor thern Wimmera Revised area (includes towns of Birchip, Meringur, Murrayville, Nhill, Ouyen, Rainbow, Warracknabeal and Wycheproof)
• North-East Victoria area (includes towns of Beechworth, Benalla, Corryong, Kilmore, Mansfield, Rutherglen, Seymour and Wangaratta)
• Northern Victoria Revised area (including towns of Kerang, Kyabram, Rochester, Rushworth, Shepparton, Stanhope and Tatura)

Victori an areas in which EC assistance will expire on March 31, 2010:

• South Western Victoria area (includes towns of Ararat, Balmoral, Colac, Coleraine, Goroke, Hamilton, Lake Bolac, Portland, Stawell and Warrnambool)