Community leaders are being warned another year of drought could cost north-west Victoria 3,000 jobs and hundreds of millions of dollars worth of trees and vines.

A report to the Mildura council paints a grim picture of the likely fallout in the Swan Hill and Sunraysia regions.

If water allocations are again at 42 per cent, as they were this season, the reports show production would be cut by more than a third, at a direct cost of $170 million in the Nyah to the South Australian border region.

It estimates indirect losses of $280 million and an estimated 3,000 to 4,000 jobs.

It costs an estimated $20,000 to replant every hectare of trees and vines allowed to die - potentially $800 million across the region.