The Drought Recovery Committee, established by Hepburn Shire Council, will consider long-term strategies to address the impact of drought in the community.

An information brochure that aims to help people investigate all options for assistance will be mailed to all farmers and be available at various outlets next month.

Mayor and local farmer David Smith said farmers and those with farm-related businesses were hardest hit by the drought.

He believed the effect would be widespread in the long-term

"Lack of income and employment can have a devastating economical and social flow-on affect in rural communities," he said.

"As a farmer I realise the importance of each and every one of our farms and farming-related businesses."

Cr Smith said the committee met for the first time last week and the alliance between agencies and organisations was expected to assist and provide opportunities for the wide range of people affected by the drought.

"Even if the season breaks later this year farming businesses can not expect to return a profit for at least another 12 months," he said.

"The council has also applied for drought-related funding from state and federal governments. This funding includes opportunities for capital works projects which will provide employment for people in the farming industry."

Cr Smith said assistance came in many forms and there were people available to visit farms, businesses or homes to provide advice on financial assistance.

The new committee will hold meetings every six weeks and will also run forums.

The shire has been declared an Exceptional Circumstances (EC) area.