FARM households and rural businesses across Kempsey are encouraged to apply for $3000 in cash payments from mid-March.
The move follows Kempsey Shire Council being allocated $1 million from the Drought Communities Program in late January.
"I am pleased today to be able to say farmers, farm workers and farm contractors and suppliers in the Kempsey area can soon apply for up to $3000 in cash payments," local Federal MP and Kempsey raised Pat Conaghan said.
"It is only fair that our farmers and farm-reliant businesses get this extra assistance because they have been doing it tough and it is additional support I have advocated strongly for.
"The payments will either be administered by the Salvation Army or the St Vincent de Paul Society in Kempsey.
"Details of which non-profit organisation will be providing the payments are still being worked out by Minister for Drought David Littleproud's office. As soon as I know who is distributing the payments and precisely when it starts in March, I will let the community know.
"I thank Minister Littleproud for extending this support to the Kempsey community."
The decision to extend the Drought Community Support Initiative takes the Coalition Government's commitment to drought-affected farming households to over $180 million since 2018.
Mr Littleproud also announced this week a new Drought Community Outreach program whereby the Country Women's Association and Rotary Australia World Community Service will conduct outreach programs in drought-affected areas and provide vouchers of up to $500 to eligible farmers attending.
A total of $5 million has been allocated for this program. The new outreach program will be led by the National Drought and North Queensland Flood Response and Recovery Agency.
The Federal Government is also providing additional support for people and families coming off the four-year Farm Household Allowance (FHA). Those who are finishing up their time on FHA will receive a one-off relief payment which is equivalent to a further six months on FHA.