Australia announces extra $140 mln aid package for drought-hit farmers

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About 690 SA farmers who already receive the Farm Household Allowance will also get up to $12,000 in additional payments, under a $576 million drought package unveiled by the Federal Government at the weekend.

Prime Minister Malcolm Turnbull announced the funding from a farm in the state of New South Wales which will give farmers in need lump sum payments and support mental health initiatives and community groups.

National Farmers Federation president Fiona Simson previously told the Australian that droughts were not only devastating regional NSW but has also affected parts of Queensland, South Australia's Eyre Peninsula, large parts of Victoria as well as South Australia's Mallee.

The latest aid will also provide more support for mental health services in the affected areas.

"We are, as we have all said, the land of droughts and flooding rains, but we haven't had a drought this bad for a very, very long time, since the Bureau of Meteorology says 1965".

Ninety-nine percent of New South Wales, which is the country's most populous state and provides around a quarter of the country's agricultural output, is now in drought.

Queensland has allocated more than $670 million to grants, loans, infrastructure projects and drought climate adaptation programs.

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Dry farmland across Australia isn't expected to get much reprieve as we head into spring and summer. Picture: 9NEWS The rain that did fall, was nothing to farmers, who would need downpours for it to make a difference.

Mr Turnbull said the drought was the worst in many decades, and the cash payments would help provide some relief to families.

McCormack echoed the prime minister and acknowledged the important role farmers have in the nation.

Teasing showers came a day after the Federal government dedicated a relief package to farmers.

"(But) we haven't got the same urban or town water shortage challenges we had in the millennium drought", he told the ABC.

He believes building more dams is key to preparing Australia for future droughts.