The NSW government is doubling the amount of financial support on offer for drought-affected communities across the state.
Premier Gladys Berejiklian and her deputy John Barilaro on Wednesday visited a dry Dubbo farm, in NSW's central west, to announce the $284 million boost to its relief package for farmers and their families.
Most of the extra money - to be allocated in Tuesday's budget - will go towards the farm-innovation fund to help farmers build on-farm infrastructure and prepare for drought.
The program will be expanded to allow them to access $50,000 seven-year interest-free loans to buy feed, install key water infrastructure, as well as collect and store genetics of their herd or flock.
The budget will also include more than $4 million for mental health support and counselling for farming communities.
"We are determined to stand side-by-side with our farmers which is why we are providing both funding for drought resilience through our farm innovation fund and strong mental healthcare support to get people through this tough time," Ms Berejiklian said in a statement.
On top of that, more than $25 million has been set aside to build and operate three new radar weather stations in the state's west.
"The radars will provide real-time weather coverage for 30 per cent of the state," Mr Barilaro said.
The drought package also includes a new kangaroo management strategy to help cut back numbers in drought-hit areas.
NSW Farmers welcomed Wednesday's announcement, saying the expanded $500 million fund will help farmers as they face extended periods of low or no regular income.
"It's good to see the government has been listening to farmers' concerns," president Derek Schoen said in a statement.
The association also thanked the government for the additional mental health services and weather stations, as well as measures to manage kangaroos.
Mr Schoen said the kangaroo plague has been building for years and exacerbated drought conditions in many areas in NSW.
"The removal of tag requirements, along with allowing secondary use of kangaroo carcasses, will not only be a huge relief for farmers it makes complete sense environmentally," he said.