FARMERS have called on the Victorian Government to insure half the state's 60,000km of crown land fencing bordering private land.

The Victorian Farmers Federation says it would cost the Government as little as $300,000 to insure its share of the fencing.

"It would give farmers some certainty their neighbour (the Government) was going to pay half the cost of fencing destroyed by fire," VFF Land Management committee chairman Gerald Leach said.

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Under the current Fences Act the Government is exempt from paying its half share of crown land fencing destroyed by fire or floods, leaving landholders to pick up the tab.

Mr Leach said insuring crown land fencing could save the Government money in the long term, given the millions of dollars spent on clearing and replacing fences.

In 2003, then Treasurer John Brumby announced a $5.75 million fencing assistance package that included $3.75 million to replace about 400km of dog-proof fencing and another $1.2 million for clearing, but not replacing up to 700km of normal fencing adjoining crown land.

Since Black Saturday the Government has spent $2 million co-ordinating volunteers to help landholders rebuild fences, some of which included boundary fences.

Landholders have also been given access to clean-up and restoration grants of $25,000 each since Black Saturday, part of which could be used for fencing.

The Government and Opposition have so far refused to support the VFF proposal.

The VFF wrote to Treasurer John Lenders in December calling on the Government to insure its share of fencing.

But Mr Lenders handballed the issue to Environment Minister Gavin Jennings whose spokesman said the Government had no plans to insure its crown land fencing.

Opposition bushfire response spokesman Peter Ryan said the Liberal-Nationals Coalition would release its fencing policy closer to the November State election.

The Government dumped a 1999 election promise to cover half the cost of farm fences destroyed by fire.

During the lead up to the 1999 election campaign, the then Labor Opposition gave its "in-principle support to the 1998 Victorian Law Reform Commission's recommendation that the Government contribute half the cost" of constructing or repairing fences adjoining crown and private land.

But the Government later decided not to agree with the recommendations.