Farmers have welcomed the Federal Government's increased drought assistance package, despite acknowledging its measures will not suit every individual.

Merrigum dairy farmer and recently returned Nuffield scholar Jamie Snell said while the new package would not suit everyone, he hoped it would be more wide-reaching than previously.

"Obviously the federal package won't satisfy certain individuals . . . but I think as a drought package as whole it's fairly substantial and wide reaching," Mr Snell said.

He said it was important some forward thinking was employed by the government during the drought to assess the best way for farming to take place in the future.

"Some thinking needs to be directed to what our options and alternatives and visions for the future are," he said.

"Should we be trying to survive this drought by going forward as per usual or should we be changing our farming practices?"

Waaia dairy farmer Dudley Bryant said the increase in drought assistance measures was a positive step, but he questioned aspects of the package, including the $20 000 irrigator's grant.

"It appears to me that it (the grant) is to increase infrastructure in the future and is aimed at the long-term rather than today," Mr Bryant said.

He said farmers faced immediate problems including having to borrow money to buy in feed and he suggested measures to provide better access to money including no or low-interest loans.

"A lot of people want to continue on and it would be a shame if people exited the industry, if (they couldn't) get a $100 000 low-interest loan, which would allow them to keep their cows alive," he said.

"The fact that they've come out with a package acknowledging our situation has to be applauded, but it's getting it to go to the right place that is important."

For more information, phone the Drought Assistance Hotline on 132 316 or visit www.daff.gov.au/droughtassist