The NSW Government are doing their part to ensure our state is as drought prepared as possible as we move into a hotter - and potentially drier - period.

While groups of councils and other regional bodies are looking to put programs in place, individual farming enterprises will also be eligible for extended support.

A $250 million Drought Ready and Resilient Fund (DRRF) will allow farmers to access loans of up to $250,000 dollars to be spent on "essential items."

In a new development, the loan money isn't limited to capital investment expenditure and can be spent on things like feed and livestock transport costs.

Feeding equipment and costs associated with veterinary and professional nutrition and welfare advice will also be eligible for support.

As for the interest rates on the borrowings, for the DRRF fund it is variable and referenced on the 5-10 year bond rate of the government which changes monthly.

However, the rate will be fixed for the term of the loan which can be paid back in either five or ten years.

Primary producers can continue to access loans of up to $1 million dollars for on-farm infrastructure, at a fixed interest rate of 2.5 per cent as part of the Drought Infrastructure Fund.

NSW Minister for Agriculture Tara Moriarty says the fund provides a common sense approach to helping farmers through dry times.

“The NSW Government is committed to supporting our agriculture sector and this is an important investment in the resilience of this vital industry throughout the emerging dry conditions," said Ms Moriarty.

“The aim of this government initiative is to give farmers access to operational funding so they can get assistance to work through a challenging period."

“This is a common sense approach to ensuring farmers and livestock producers across NSW have the resources they need in the event of drought."

The DRRF has been welcomed by NSW Farmers who are excited by the inclusion of operational costs into the funds guidelines.

“These loans, announced before drought hits hard, help farmers to make proactive decisions," said NSW Farmers president Xavier Martin.

“Farmers are always subject to climate variability, and having faced significant drought and disaster impacts in recent years, know that having a plan and some certainty as to how best to prepare for adverse conditions is critical."

“For the first time, farmers will be able to access the loans for operational activities, including purchasing fodder and stock transportation costs.”

Applications for the DRRF open on 1 December 2023.