Premier Gladys Berejiklian and Deputy Premier John Barilaro announced the new spending on Monday morning following a week of pressure from Nationals MPs to do more.

About $190 million will be spent on the introduction of ‘Drought Transport Subsidies’.

The subsidies will be able to cover up to 50 per cent of the full cost of transporting fodder, water for stock and livestock to pasture, slaughter or sale.

Package will offer a transport subsidy of up to $20,000 per farm business.

Downside cattle, sheep, horse and Kelpie stud farmer Steve Condell said the expanded assistance was welcome, especially in the Riverina’s northern areas.

“People have been crying out for it. There has been more activity within our own ranks than from the government with farmers helping other farmers,” he said.

“The government has come to the table, which its great. There’s no doubt in the world it will help.”

Mr Condell has been trucking in feed to sustain his cattle and has seen other farmers with their paddocks turned to dust.

Mr Condell questioned the decision to cap the subsidies, saying the drought dictated when farmers would stop needing assistance.

“Every family that leaves the land is a big knock to smaller towns and their businesses,” he said.  

The relief measure will also be back-dated so farmers can access additional subsidies for freight expenses incurred since January 1.

The NSW Rural Assistance Authority will begin processing applications from Monday August 6.

The Department of Primary Industries’ combined drought indicator this month showed 70.6 per cent of the region is “drought affected” and a further 28.6 per cent has been declared as officially in drought.

Drought affected is one the category below that of “drought” and reflects a worsening of conditions for farmers, with low rainfall and only modest ground cover growth.

A tiny 0.1 per cent of the Riverina is shown to be in the “recovering” category, the opposite end of the spectrum to “severe drought”.

Currently there is no area in the Riverina to have been classified as being in “severe drought”.

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Mr Barilaro said this drought has quickly worsened across the state because June and July were drier than expected, and farmers have been forced to source fodder from interstate.

“We said we would constantly reassess the conditions and relief measures, and the fact we’ve now increased our drought-relief package to over $1 billion is a reflection of how serious this drought is, and how much we value the health and wellbeing of our farming and regional communities,” Mr Barilaro said.

“Importantly, we have backdated this relief measure to the start of the year when the drought intensified, especially in the Upper Hunter and Western NSW.

“This means eligible farmers who made the decision to destock earlier this year will still benefit from this new relief package.”

Riverina MP and federal Nationals leader Michael McCormack welcomed the new drought assistance.

“Well done to the NSW Government on their additional drought support announcement,” Mr McCormack stated on social media. 

“We all look forward to continuing to work with farmers and communities during this difficult time.”

Labor candidate for the pending Wagga by-election, Dan Hayes said drought assistance should be a “bi-partisan issue”.

“It has taken the government a bit of time to act but it is something that is much-needed in the community and it is good that they are acting,” he said,

“At the end of the day, we want it to rain. What we need to be doing while the drought is here is provide as much assistance as possible to get people through a difficult time.

“When rain does happen, that doesn’t mean that everything then is good; we need to support those on the farm and farming communities with the consequences and impacts of the drought.”

NSW Farmers has also been contacted for comment.

The new spending included $100 million for cutting the cost of farming fees and charges by waiving Local Land Services rates, waiving fixed water charges in rural and regional areas, and waiving class one agricultural vehicle registration costs, among other initiatives.

There was also $150 million in additional money for the Farm Innovation Fund infrastructure program and funding for counselling and mental health; Critical services in regional communities including transporting water and drought related road upgrades and repairs; and animal welfare and stock disposal.