Minister for Agriculture, Fisheries and Forestry Tony Burke announced the extension late yesterday.

Mr Burke said the government had accepted National Rural Advisory Council advice to extend assistance in 32 areas across Australia where it was due to expire on September 30.

Farmers and small businesses in an area encompassing Horsham, Kaniva, Sea Lake and St Arnaud can continue to access EC assistance.

The government has also extended drought assistance in central Victoria, north-east Victoria and northern Victoria but has knocked back central and east Gippsland EC extensions.

Hindmarsh councillor Darryl Argall welcomed the extension.

He said many Wimmera farmers were worried about what was going to happen if EC assistance expired on September 30.

"EC is of extreme importance," Cr Argall said.

"We all know it doesn't rain money.

"I say a deep and genuine thank you to state and federal governments for their continued support to have this rolled over."

Victorian Farmers Federation president Simon Ramsay said EC extension would allow farmers to implement financial and social welfare plans.

"We've been advocating for the extension and we've been advocating for a quick announcement," Mr Ramsay said.

"We are pleased that it has been rolled over for six months and we are pleased it has been an early announcement.

"It's disappointing for East Gippsland but it's good news for the other areas."

Mr Ramsay said he would call the State Government today to ask whether it would continue drought support programs linked to Exceptional Circumstance funding.