The National Farmers' Federation welcomed the boost in national government funding as farmers wait for rain to break one of the nation's worst dry spells in 100 years.
Prime Minister Malcolm Turnbull announced the federal government's $190 million relief package on Sunday at a farm in central NSW.
National Farmers' Federation chief executive Tony Mahar said the aid is much needed.
"They'll (farmers) be welcoming it," Mr Mahar told SBS News.
"It will provide some immediate support and will really help with cash flow through the business if people are looking to feed stock or maintain their own family requirements."
He described some farmers' situations as 'tragic' as farmer’s battle dry conditions across eastern and southern Australia.
"Going forward, obviously, we're in for some pretty challenging times for a large proportion of farms in New South Wales and Queensland, parts of Victoria and also South Australia," he said.
Labor has welcomed the package but called on the government to introduce plans to tackle climate change's impact on drought.
Opposition Minister for Agriculture Joel Fitzgibbon said if the government is "serious" about responding to drought, it has to "recognise the impact of climate change".
"We must except the climate will continue to become challenging, if not more challenging and the best thing a government can do is help farmers embrace the best farming practices beyond the farm gate," Mr Fitzgibbon told reporters on Sunday.
See Labor's statement on #drought assistance here https://t.co/IyJyrHPCsO #climate #resilience #adaptation #sustainability #auspol pic.twitter.com/TajkWMSTLm
Last month was the driest July nationally since 2002, with about about 99 per cent of NSW and more than 58 per cent of Queensland now officially in drought.
On top of the dry conditions, there is a 50 per cent chance of an El Niño weather event developing this Spring, which is linked with below average rainfall in Australia’s south-east.
Up to $12,000 per household in extra aid
The additional emergency relief payments will allow couples to get up to $12,000, while singles will be able to access up to $7200 as part of the Farm Household Allowance.
Eligible farmers will receive the first payment on September 1, with another round of funding to flow on March 1 next year.
#NEWS NFF President @afsnsw welcomes Federal Government's immediate additional cash-injection of up to $12k for eligible farmers via the Farm Household Allowance & urges farmers to check their eligibility by calling 1800 686 175 https://t.co/gOJ0OmrfMJ https://t.co/LMLbFqCOPl
The funding, which includes a boost for mental health services, takes the federal government’s drought response to $576 million.
The announcement also includes $11.4 million in funding for other initiatives supporting the mental wellbeing of farming families and their communities.
Under the changes, instead of three out of 10 Medicare-supported psychological consultations needing to be in person, all of them will now be able to be held over the phone or through Skype.
But with no rain it sight, Mr Mahar questioned whether the drought relief measures will deliver meaningful change.
“Is it enough? Well it's really certainly a welcome step in the right direction and we’ll just have to keep monitoring how severe the impacts are."