Dry, splintering conditions in many parts of far west New South Wales are causing some graziers to de-stock paddocks, sell off livestock and cart in hay, as they wait for much-needed rain.
In parts of Queensland subsidies are already available for freight and emergency water infrastructure as 60 per cent of the state has been drought declared.
Graeme Thornton from the New South Wales Rural Financial Counselling Service says drought conditions don't stop at state borders.
"Certainly there's declarations being declared in parts of Queensland by the state government, and that's brought in measures such as freight subsidies on fodder, stock movement to agistment and water cartage.
"I think people are saying, well maybe Queensland's not that far away from Tibooburra, maybe we should be looking at some sort of assistance similar to what's being provided in other states.
"I think we're getting into unchartered waters with what's particularly normal these days, that seems to be an issue I think. I think what people are asking for, is what sort of assistance government's going to be able to provide in terms of, well if we said drought."
© ABC 2013
17:43 EDT The Federal Agriculture Minister says he's working hard to finalise arrangements for the new concessional loan scheme.