A planned burn-off that broke containment lines and went on to destroy homes near Lancefield in central Victoria was under-staffed and poorly planned, an independent report has found.

The investigation into last month's fire found "significant shortcomings" in the way Victoria's environment department carries out planned burn-offs and communicates with the community.

Department of Environment, Land, Water and Planning (DELWP) secretary Adam Fennessy repeatedly apologised for the failures at a community meeting in Lancefield this morning.

"I am very sorry and deeply sorry for the distress this fire has caused you and the disruption and enormous impacts it's had on your lives," Mr Fennessy said.

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"When this planned burn escaped containment lines it threatened you, it threatened your properties, it threatened you as a community, and we let you down."

The fire broke containment lines in warm and windy weather, destroying four homes and burning more than 3,000 hectares of farmland and state forest.

The report found DELWP staff did not adequately assess the risks of lighting the fire a few days before the AFL grand final, including consideration of the "broader forested environment", technical challenges and the potential social impacts.

"There is evidence resources were minimal and based on everything going according to plan," the report said.

"This was exacerbated over coming days by failing to adequately scale up when the situation deteriorated, breaches of boundaries occurred and fire weather forecasts indicated changing and unfavourable conditions.

"Interviews also revealed that there is a resignation by staff that district resources and budgets are tight and this may result in resources at a burn being 'thin'."

Victorian Environment Minister Lisa Neville said inadequate staffing during the burn-off was a consequence of the flawed risk assessment.

"Because the risk assessment was not done properly, the resources weren't put in place," she said.

"The fundamental error here was the risk assessment was wrong."

Ms Neville said the fire "probably should not have been lit, given the broader circumstances".

She denied staffing levels were influenced by the new grand final eve public holiday, or grand final day itself.

Scrapping annual burning target 'dangerous'

Lancefield property owner Verne Glenwright said he lost sheds in the fire, which burnt "every stick in the place", but his family home was saved.

Emergency Services Commissioner Craig Lapsley answers questions from angry locals at a community meeting in Lancefield today. ( ABC News: Alison Savage )

"We still struggle with water for animals and to the house. We've got babies crawling around in soot every day," he said.

But Mr Glenwright, who also lost a house on Ash Wednesday, said he supported Victoria's planned burn program.

"I believe planned burns are the way to go. They're a necessary evil," he said.

The State Government is also dumping its annual 5 per cent target for fuel reduction burns in favour of a new risk-based strategy.

Ms Neville said a strict hectare-based system, which was recommended by the royal commission into the Black Saturday Bushfires, did not necessarily reduce the risk.

"It's not about saying we're going to be doing less or more hectares, it's about making sure that where we are burning we're going to get the best benefits and the best reduction in risk to communities, to property and life," she said.

Retired bushfire scientist David Packham warned that scrapping the target was dangerous, saying the state should strive to burn at least 10 per cent of public land in Victoria.

The Lancefield investigation was led by West Australian bushfire expert Murray Carter.