Best drought figures in four years

AAP

THE recent deluge of rain has brought relief to struggling regional communities in NSW, with figures showing the area ravaged by drought has halved since the start of the year.

Forty per cent of the state is now in drought, compared to 81 per cent in January, Minister for Primary Industries Steve Whan said.

"The February drought figures show we are in the best situation we've been in for four years," he told reporters in Sydney on Wednesday.

"It's very good news for farmers ... for the rural economy overall."

Fodder growth was already underway and crops were showing positive signs for next season, he said.

The production of cotton and rice is also likely.

But consumers may still have a long wait ahead before they start feeling the effects.

"I would expect that we will see, particularly beef prices for a while, staying fairly high because you will see farmers trying to restock now," he said.

"One of the things people need to remember is it does take farmers a while to recover from a drought situation - they need to have time for the crops to grow, to restock their properties, before they can start to return an income."

The improved figures were due to the steady rain that fell across the state in recent months.

Areas that moved out of drought this month include Cobar, Dubbo, Goulburn and Wilcannia.

Farmers in those communities will lose some subsidies under the government's drought assistance program, but federal government exceptional circumstances grants will continue until next March, Mr Whan said.

"That continues to provide support while people get back on their feet."

Eight areas were lifted from a marginal to satisfactory drought rating, including Armidale, Coonabarabran, Coonamble, Mudgee, Narrabri, Nyngan, Tamworth and Walgett.

While challenges remain for parts of southeast NSW and the Riverina, which are still lacking water, the outlook appears to be good, Mr Whan said.

"I'd expect over the next month or so ... that we will see some more (figures) drop, particularly in the south where the rains in the last few weeks will have resulted in some pasture growth," he said.