Victorian agriculture minister Jaala Pulford said it appeared the pool would provide finance for less than two per cent – 70 of 4300 – of the state’s farmers.

“While welcome, it is a far cry from what Victorian farmers deserve,” Ms Pulford said.

“Under the arrangements, only farmers supplying Murray Goulburn and Fonterra during the 2015/16 milk season will be able to access the scheme.”

United Dairyfarmers of Victoria (UDV) president Adam Jenkins said the loans would give another avenue, to farmers who could not take on more bank debt or were receiving assistance from a processor.

He said the UDV had been assured it would not be a “bureaucratic process” to get the loans.

“From the UDV perspective, if they are having real difficulty in accessing loans, we would like to know about it.”

He said it appeared inequitable that the loans would only be available to Fonterra and Murray Goulburn suppliers, and not leaseholders, sharefarmers or those with other processors.

“We need to be advocating how we support those people through this particular situation, they may be very good farmers and have been caught in a situation not of their making.”

Ms Pulford agreed the scheme appeared to disadvantage the 20pc of producers who were sharefarmers or lessees, many of whom were young and may not meet the loan requirements.

“The Coalition needs to explain why it has removed the financial hardship test for the Dairy Recovery Concessional Loans, which prioritises loans towards those who are in greatest financial need,” Ms Pulford said.

“They should also reconsider the interest rate they are offering and confirm what funds will be available after 31 October.”

Colac sharefarmer Brett Craig, a Fonterra supplier through Bonlac, said he’d been told very few producers would be eligible for the loans, as property values would be taken into account.

“The land is worth too much, on paper, and if you are a landholder, you can get access to finance anyway and are only going to save one percent at best.”

Mr Craig, who has a 220 strong herd, said his income had dropped by 75 per cent

“It’s a political stunt,” he said.

Sharefarmers, or young people starting out in the industry, didn’t have access to secure capital

“No-one can apply for concessional loans with out income estimates either and we can’t do that without an opening price,” he said.

Another farmer, who declined to be named, said the scheme was “pretty pathetic.

“National Dairy Products suppliers have missed out, they haven’t had the clawbacks, but sharefarmers are missing out, lessees are missing out and Kiwis are missing out – it’s a very narrow focus.”

Nerenna, Gippsland MG supplier Montana Carew said she was still trying to find out the details of the package.

“Everyone wants to know now, so they can plan for the year ahead,” Ms Carew said.