The sparsely populated shire of 7513 people hopes its location in the "greater Bendigo hinterland" will allow it to capitalise on tourism and a growing services sector, according to a draft economic and tourism strategy the Loddon Shire has just released for public comment.

Expected job growth in agriculture "may well be offset by further rationalisations and impacts of automation in agricultural production and processing," the report states.

The shire's farmers will also continue to grapple with climate change's impact on agriculture and be forced to keep modifying practices, it notes.

The shire has found evidence it has stopped the population declining over the past 10 years and areas close to its southern neighbour Bendigo are "poised for growth", the draft strategy states.

Yet it is still early days.

"Fewer than 10 years of stability is not enough to prove that a long term trend of decline has been overcome but there are signs that further stabilisation, and some growth, can be expected," the report says.

Bringing in more tourists should be a key goal over the next five years, according to the strategy, the "underdeveloped" industry overshadowed by attractions in Bendigo as well as the Campaspe and Mount Alexander shires.

Story continues below draft strategy

Loddon could compliment Greater Bendigo's tourism strategies with welcoming towns, food and wine and natural environmental experiences, among other ideas, but needs to become "tourism ready."

Every small town in the shire has at least one popular cafe or bakery and these - along with the dining, accommodation and dining industries - should lead the charge, the strategy states.

The council has also proposed moving away from using specialists to bolster tourism, agribusiness and food processing, even if they have proven to have some success.

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"There are limits to the resources allocated to economic development and tourism, especially in a financially constrained environment with caps on staffing and organisational overhead," the draft strategy states.

Instead, the council suggests a limited dedicated staff in combination with other staff members with multiple rolls, as well as "selective outsourcing" to specific projects where it is working with an investor or government group."

The strategy is open for consultation until 4pm on 30 October and comments can be sent via the Loddon Shire's website.

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