Agriculture Minister David Littleproud has urged farmers to tell Westpac and ANZ to "jam it" over their refusal to help producers save for tough times.
It comes after Rabobank became the latest lender to let farmers offset money put away for the good times against loan interest.
Agriculture Minister David Littleproud welcomed the decision by foreign-owned Rabobank, before ramping up the heat on two of Australia's big four banks.
He wants Westpac and ANZ to fall in line and offer farmers the option to use their farm management deposits as an offset against their loans.
"Farmers banking with Westpac and ANZ should be telling them to jam it and go somewhere else if they don't offer FMD offset," Mr Littleproud said on Monday.
He said Westpac and ANZ's donation to drought causes were too small to be calculated as a percentage of their multi-billion dollar profits.
"It's all very well giving a relatively small amount of money and getting your mug on the telly, but what would really make a difference to our farmers is an FMD offset product," Mr Littleproud said.
Rabobank Australia chief executive Peter Knoblanche said the bank had reviewed its offering in light of the drought sweeping large parts of Australia.
Commonwealth Bank announced last week it will offer a credit adjustment for customers with eligible farm management deposits and business loans.
NAB started to offer the mechanism last month, while Rural Bank was the first lender to allow offsets of farm management deposits.
Australian farmers have more than $6 billion in farm management deposits, with individuals allowed up to $800,000 in an FMD.
They could potentially save up to $24,000 a year if their bank offers an offset of three per cent interest.
Prime Minister Malcolm Turnbull said the measure provided support for farmers' resilience.
Rabobank last week confirmed it would not charge drought-stricken farmers penalty interest on loan repayments, along with CBA, ANZ and Westpac.
