Up to 144,000 landholders could benefit from the NSW Government decision to waive Local Land Services (LLS) rates for the second year running.
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It could mean a saving of $4000 for the average farm in the north, and a saving of $6000 over two years for smaller farms in the south and central areas.
Minister for Agriculture Adam Marshall said that waiving LLS rates would help reduce the burden on farmers.
"My top priority is to make sure farmers are getting the support they need during this difficult period, and waiving LLS rates is just one thing we can do to help," Mr Marshall said.
"For example, a farmer on 2500 hectares could save at least $3000 a year by not having to pay their LLS rates, meaning with this year's waiver, in addition to the 2019 waiver, they will have saved upwards of $6000 over two years.
"Ratepayers will receive their notice informing them that all LLS rates will be waived over the coming weeks."
He said waiving LLS rates was one aspect of the Government's $3.9 billion drought assistance package.
"While primary producers have welcomed rain recently, this drought is by no means broken," he said.
Meanwhile NSW Farmers vice president Chris Groves, who runs a mixed farming enterprise between Cowra and Canowindra admits last year's weather pattern took a toll on farmers across the region, who suffered back-to-back years of the same hot, dry conditions but he remains optimistic.
Despite the "extreme conditions" Mr Groves says farmers should not be demonised over climate change and need to maintain faith that the weather will improve.
One thing that gives Mr Grove faith for the future is that you need to go back to an entirely different world in 1902 to find Australia's next biggest rainfall deficit.
"Yes we've had a rainfall deficit like we've never seen before but previously to that the next biggest rainfall deficit was 1902," Mr Groves said.
"Yes there is climate change, we have to be very careful with our climate and our emissions but you cannot blame this drought entirely on climate change because the previous worst deficit of rainfall was 1902.
"The severity of this drought may be affected by climate change but we've had droughts before, and farmers, the younger generations, the kids of today, they'll have droughts into the future."
As for what the farming community can do to prevent future droughts Mr Groves pointed out "We'll see this again no matter what we do with regards to the climate".
"This is an extreme, this is a drought, let's just manage with what we have at the moment."
