WILD dogs are costing Victorian farmers $18 million a year, according to a report released today.

And the Victorian Coalition has promised to introduce aerial baiting to reduce wild dog numbers.

The Social Benefit Cost Analysis Wild Dog Management in Victoria report said dog attacks caused $18 million damage to livestock based on last year's prices. 

The report, completed before last November's state election but only released today, showed a further $4.4 million was spent on wild dog management by the previous State Government.

A spokesman for Victorian Agriculture Minister Peter Walsh said ``the Coalition has given a clear commitment to reinstate a true and proper fox and wild dog bounty and aerial baiting for wild dogs.

``The Government is working closely with the DPI and is seeking advice from doggers and Wild Dog Management Committees in developing and targeting the aerial baiting programme.

The spokesman said the government would ensure a smooth transition from the existing FoxStop program to the fox bounty.

Victorian Farmers Federation land management committee member Ian Lobban said any improvement in the state's wild dog control was welcomed.

``The Coalition seems more aware of the enormous cost facing farmers whose land is affected,'' he said. ``We cannot continue the way we were.''

He said aerial baiting would be effective in the areas trappers and shooters could not reach.

Mr Lobban said many farmers had been forced out of sheep because of the losses to wild dogs.

He said the $18 million cost was conservative.

Mr Lobban, who farms near Barnawartha in the North East, said high wool and livestock prices would push the cost up.

``A lot of the attacks happen in fine-wool country,'' Mr Lobban said.