The Victorian Farmers Federation is advertising the position of chief executive to "test the market".
Its current CEO has been encouraged to submit an expression of interest for the role.
The state's peak farmer lobby group advised its members of the board of director's decision on Thursday afternoon, saying it was appropriate and reflective of good corporate governance.
VFF chief executive Stephen Sheridan's contract is set to expire in December.
"Stephen has worked with the board on a range of issues including strategic considerations and implications as we look to adapt and grow the VFF as an organisation," VFF president David Jochinke said.
"While we test the market, Stephen will continue as CEO including responsibility for a number of significant reform initiatives and milestones."
Mr Jochinke said Mr Sheridan had done an "outstanding job in managing the affairs of the VFF for nearly three years" and hoped he would "submit an expression of interest for the CEO role moving forward".
The VFF appointed Mr Sheridan to the role in January 2018 after an extensive search of more than 50 candidates.
- Tell us your VP Day stories for the 75th anniversary
- 450 new cases reported, VCE students to be individually assessed
- PTSD, isolation and long nights- how Toby became homeless
- Punch in the guts': Rebels cancellation stings WImmera's youngsters
- 'Say goodbye to the kids': man allegedly threatened to kill ex-partner
Mr Jochinke said at the time, Mr Sheridan had "that unique combination of skills and attributes than can be difficult to find in the market".
"[It] includes extensive commercial expertise and experience developed in various senior management roles in a large corporate agribusiness, several years already with the VFF gaining experience across all levels of government and industry, and his own personal experience and empathy for the sector being raised on a mixed cropping, livestock and irrigation property."
It comes after the VFF in May postponed its board elections - when the terms of the president and vice-president will expire - to February 2021 due to COVID-19 restrictions around large gatherings.