To be eligible for funding, a rural council must have at least 17 per cent of its population employed by the agriculture industry — Moira Shire has 16.9 per cent.
Funding was also determined by Australian Bureau of Statistics figures and rainfall data provided by the Bureau of Meteorology.
It was revealed by Labor senator Murray Watt during a senate estimates inquiry on Monday, when he asked Federal Agriculture Minister Bridget McKenzie why a region such as Moira was not funded.
The decision has angered Moira Shire farmers.
Cobram and District Fruit Growing Association president Tony Siciliano said it was "bulls**t".
“The Moira Shire is all based on agriculture and they're saying 16.9 per cent.”
Katunga dairy farmer Bridget Goulding said it was a slap in the face to all Moira Shire farmers.
“Look at what's happening around the place,” she said.
“Yarrawonga is the big town and not that farming dependent, but when you bring in Nathalia, Numurkah, Cobram and all the little towns like Strathmerton and Wunghnu they're incredibly dependent on farming.
“What they're (Federal Government) not getting is every primary production is reliant on the other. I need the grain and hay growers out there and they need the dairy farmers to be able to buy the product.
“It's a huge kick in the guts.”
Strathmerton dairy farmer Malcolm Johns was not surprised by the number employed in agriculture, considering many farmers had sold their properties.
“There's a number of farmers disappearing and we've had bugger-all rainfall,” he said.
“I live on the Numurkah road and since I arrived in 1982, between Katunga and Strathmerton there where 14 dairy farms on this road.
“There's one farm up the road that finishes this month and I'll be the last one left.”
The news comes off the back of south-west coast Victorian council Moyne Shire receiving $1 million despite Mayor Mick Wolfe publicly saying his shire was not in drought.
Moira Shire is now alone in the immediate region with its NSW neighbours Berrigan Shire and Federation Shire both receiving $1 million drought funding.
Shire chief executive Mark Henderson said it was difficult to swallow.
“Our farmers are going no better than the surrounding areas,” he said.
“It doesn't matter if they're a dry land cropper or dairy, they're all having a really difficult time.
“Monday was the first I heard about why we didn't receive the funding; they usually write to you if successful.
“I've been following it for a while because the funding news first came up about a month ago when there was speculation there might have been a slight error by allocating the money to Moyne Shire and not us.
“So I've been talking to Damian Drum about it since the start of October and we've already contacted his office.”
Federal Member for Nicholls Damian Drum was unavailable for comment yesterday.
Mr Henderson questioned the 16.9 per cent figure supplied by Senator McKenzie.
“In my research I couldn't find that 16.9 per cent with the ABS.
“I checked our Remplan (economic consultant) figures and it's saying our agriculture industry is 19.5 per cent, so I think there is bit of mismatch in data. I've sent a note to her office asking about that.
“I understand there are procedures involved with this process but on this occasion some common sense has to prevail.
“I'm optimistic it will happen in due course.”
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