In Short

• Expanded Financial Support: The loan cap for the Drought Ready and Resilient Fund has doubled to $500,000, alongside a new $100,000 "Small Drought Relief Loan" featuring no property security requirements.
• Critical Pest Management: $3.2 million has been allocated to combat grazing pressure from kangaroos, feral pigs, and deer, specifically targeting areas where pests compete with livestock for dwindling feed.
• March 10 Rollout: Applications for new and expanded financial products open on March 10, 2026, targeting the 48% of NSW currently in drought before autumn conditions deteriorate further.

This week, the NSW Government has rolled out several drought funding measures designed to hit the ground by March 10, 2026

With roughly 48% of the state currently categorised as being in drought, and conditions expected to worsen by autumn, NSW Minister for Agriculture Tara Moriarty announced an expansion of the state’s drought plan.

The new measures focus heavily on immediate cash flow, pest management, and technical support.

Ms Moriarty said the strategy is about "practical, cost-effective support." She said that the doubling of the loan cap was a direct response to feedback from farmers who needed more capital to bridge the gap between preparedness and survival.

"Our government is focused on cost-effective measures that deliver real benefits... helping those in need immediately."

“Our innovative and practical approach is shown by the new range of low-cost financial products so farmers can get funds faster, easier and cheaper. This is what they wanted and we are delivering.

“Our Government has been implementing new drought initiatives over the last six months following meetings I’ve had with farmers, mayors and local MPs.”

“There have been some calls for transport and feed subsidies, but expert advice from the previous Nationals-Liberal Government’s 2021 evaluation report into drought relief measures, showed they provide very low value for money. We also know they can drive up prices of transport and feed.”

“Our Government is focused on cost effective measures that deliver real benefits for farmers and communities. This enables us to direct funding in times of drought to the practical, cost-effective support that makes a real difference,” Ms Moriarty said.

New and Expanded Measures

Drought Ready and Resilient Fund: The loan cap has been doubled from $250,000 to $500,000 to allow farmers to invest in larger infrastructure (like fodder storage or water systems) while covering rising operational costs.

New Small Drought Relief Loan: A new low-cost loan of up to $100,000 has been established with reduced paperwork and no property security required, intended for rapid cash-flow needs.

Pest and Grazing Pressure Control: $1.2 million to reduce kangaroo populations in the Far West (who compete for dwindling feed). $2 million for targeted control of feral pigs and deer.

Drought Adoption Officer Program: Funding extended $1.2 million funding – this initiative that started in late 2023 has been extended to December 2026, due to the success delivered - 2,000 one-on-one landholder consultations, and 880 events and farm visits, according to the Minister.

Term of the Southern NSW Drought Coordinator extended: Initial six months now extended to end of 2026 and expanded to western NSW where dry conditions are challenging farmers.

Technical & Mental Health Support:

• Free Feed and Water Testing: $250,000 for statewide kits to help farmers budget feed and manage livestock health.
• Drought Coordinator Extension: The Southern NSW Drought Coordinator role has been extended to the end of 2026 and expanded into Western NSW.
• Rural Financial Counselling: An additional $1.8 million in funding.