NSW Farmers' Association President Jock Laurie says this blunder by WorkCover must be rectified immediately and the farmer should not be forced to wear the costly mistake.

"This is an outrageous abuse of power by WorkCover bureaucrats in attacking an innocent farmer. WorkCover was forced to withdraw the allegation through a lack of evidence and now refuses to pay for its mistake," Mr Laurie said.

The farmer had been charged for using an unsafe 'as new' piece of equipment - a 2388 International Harvester.

WorkCover maintained that the farmer should have made numerous technical modifications - despite the fact that the machine had been made by the world's biggest manufacturer, Case New Holland and cost more than $350,000.

After evidence was presented to the Court that this was not possible, WorkCover had to withdraw that part of the case.

However, a loophole in the Criminal Procedure Act 2006 prevented the presiding Judge from awarding costs.

"The Judge said that she would have considered costs if she was able to," Mr Laurie said.

"Accordingly the Association calls upon WorkCover to follow Her Honour's fair advice and pay for its costly mistake," Mr Laurie concluded.

The Association believes that this case has significantly damaged WorkCover's standing and reputation amongst the rural community who cannot afford to fight unjust legal action during the worst drought on record.