Mr Hutchinson said there was no doubt that the state was in the grip of a dry season and the impacts of the dry winter and spring were having an effect on the state's farmers.

However, he said that it was not going to change things if the federal government declared a drought situation.

"We can't make it rain, but what we really need is for it to rain in like three or four weeks," he said.

Under an agreement signed in 2013 between the Labor state government, headed then by Bryan Green, and the federal government, the decision on whether to declare emergency situations such as drought was taken away from the state.

Mr Hutchinson said the agreement was signed to avoid a "lines on map" situation whereby some properties would be considered in drought but their neighbour wouldn't because they got an extra miniscule amount of rain.

"We don't want to get into semantics here," Mr Hutchinson said.

"There are a set of national guidelines and they are measured by rain deficiencies ... September and October were the driest months on record and there's no doubt they are having an impact now but we need to remember we are in the middle of summer, that is when it is usually dry."

Despite mounting pressure from the opposition the state government has been reluctant to call a drought situation.

Primary Industries Minister Jeremy Rockliff announced some aid measures in November, that included funding for a feed and fodder register, subsidies for irrigation connections and mental health support services.

Water levels have been recorded as well below their previous lowest water records with Lake Leake, the state's man-made water storage reservoir hitting 1.51ml.

Its previous lowest ever recorded level was 1.57ml.

Mr Hutchinson said federal funding had been allocated to financial counselling organisation Rural Business Tasmania recently that was the best way the federal government could assist during these difficult times.

"My view is that resourcing, properly resourcing, organisations like Rural Alive and Well and Rural Business Tasmania will provide the support in terms of financial advice or counselling that will help farmers and families make the best decisions they can for the circumstances," Mr Hutchinson said.

"Resourcing the human capital though these organisations is the most efficient support we can provide at this time."

Mr Hutchinson said there was no doubt that it was a stressful time for primary producers and that the only real way to fix the situation was for it to rain.

He said there was funding available for people to access concessional loans, that are funded by the federal government but the decision to allow farmers to access that funding rested with the state, according to Mr Hutchinson.