Animal activists, conservationists and First Nations people have welcomed the recent changes by the Victorian government to list dingoes as a protected species on private and public land in north-west Victoria.

However, sheep breeders and wool producers have labelled the decision their "worst fear" come true.

VSMSBA president and Koole Vale Merinos stud principal Alan Harris, Costerfield, said the decision had blindsided the sheep and wool industry in Victoria.

"I'm very disappointed in this decision," he said.

"Our livestock producers are going to be the ones who bear the brunt of this, and ultimately rural and regional communities.

"We've had no consultation with the government over this, yet our industry is going to be most affected by this decision."

Farmers in other parts of the state fear they could be next, with an unprotection order allowing dingoes to be killed without a permit across the rest of Victoria up for renewal on October 1.

"Farmers will exit out of livestock and make that decision based on how they are affected," Mr Harris said.

"If farmers are dealing with mauled animals, and many of us do, then it will leave producers with not many options."

Victoria Valley farmer Rhonda Crawford, Rock-Bank Merino stud, said she was shocked by the decision.

"As woolgrowers and sheep breeders, this is our worst fear come true," she said.

Mrs Crawford and her husband John have long lobbied the government to prevent the release of dingoes into the Grampians National Park.

"It just seems animal activists are being listened to and the farmers have been ignored," she said.

The repealed unprotection order means farmers will now need to apply for a permit if they wish to kill dingoes.

Previously, farmers were given $120 per dingo pelt under the Fox and Wild Dog Bounty Program, but now even with a permit, the bounty will cease.

Dingoes can still be killed on private land across the rest of the state.

The government said the decision was made because of the important ecological roles dingoes played and research from the Arthur Rylah Institute which showed the dingo population in the north-west was at risk of extinction, with as few as 40 dingoes left.

The Humane Society of Australia, who campaigns to save apex predators, said it brought an end to "callous and outdated" dingo measures.

"Now we need to see an end to the unprotection order in the rest of the state," HSI Australia head of campaigns Nicola Beynon said.

"Dingoes are an important apex predator in the landscape and are of high conservation value due to their cultural significance and evolutionary role in regulating ecosystems.

"They are intrinsically linked to the health of many ecosystems, and by suppressing cat and fox activity can have a much-needed positive impact on the survival of many other Australian species."

Agriculture Minister Ros Spence said the the government was supporting farmers in the area by providing $550,000 to adopt alternative non-lethal control methods, such as exclusion fencing and guardian animals.