The funding from the Government was announced following its extension of the Drought Communities Programme.

Kempsey Shire Council general manager Craig Milburn said council is working with the Government to determine how the funding will be used.

"Kempsey Council is extremely grateful for this additional funding for our ongoing drought relief and water security work," he said.

"At this stage, we are working with the Federal Government to determine the exact details of this funding and how the funding may be used."

Federal Member for Cowper Pat Conaghan said the extension came due to lower than average rainfall across the Kempsey Shire over summer.

"This is a good start to getting the Kempsey Shire further assistance as the area is still doing it tough due to the drought and Spring bushfires," he said.

The Coalition Government also announced today that farmers in the Macleay can now apply for drought loans of up to $2 million.

Mr Conaghan said the guidelines underpinning the concessional drought loans available through Regional Investment Corporation (RIC) have been expanded so all farmers affected by drought can apply.

Farmers in the Macleay who were previously deemed ineligible for the loans because of the certification map can now reapply.

"The available loans for our farmers weren't previously available under the RIC. They are now eligible for loans of up to $2 million. The loans are interest free for two years and will be 10 year loans," Mr Conaghan said.

"This is something I advocated strongly for as these drought loans can save farmers more than $200,000 in interest and repayments in the first two years, compared to bank loans."

Minister for Drought and Rural Finance David Littleproud said the loans and $1 million funding to Kempsey Shire Council will help the community get back on its feet following the drought and bushfires.

"These drought loans are an investment in hard-working Australians. Once it rains farmers will make a quid," he said.

"This won't be a Canberra led recovery, it will be locally led. That's why we've also empowered local government with the $1 million to stimulate their local economies."

Mayor Liz Campbell said the announcement of $1 million for council and the availability of loans for local farmers will be a boost to the region.

"Agriculture is an important part of our community and this will help our farmers get back on their feet,' she said.

Mr Milburn said the funding for council will help improve the impacts the drought has had on Macleay farmers.

"Certainly it will provide much-needed support for our community and council will be looking at infrastructure projects that contribute to the economic activity of the Valley and help address some of the impacts of the drought," he said.

For more information about the drought loan visit ric.gov.au or call 1800 875 675.

Local Rural Financial Councillor Terry Pearce can also be contacted on 6568 3888.

Landholders are able to use their property's inclusion in the NSW Government's Department of Primary Industries drought map as evidence of being drought affected. See https://edis.dpi.nsw.gov.au/ for more information.

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