New South Wales is getting ready to sign up to the Commonwealth's Farm Finance Package.
Queensland and Victoria have already signed up, and the Northern Territory is also preparing to.
The Federal Opposition claims the package is unfair, because larger states, like NSW, get the same funding, $60 million, as smaller states.
Premier Barry O'Farrell made the announcement while opening the NSW Farmers' Association annual conference in Sydney this morning.
He says the state hasn't signed up just yet.
"New South Wales will sign up to the Federal Government's Farm Finance Package," he said.
"The Department of Primary Industries is working through the final details this week, with a view to making concessional loans of up to $650,000 available by the end of this month."
NSW Agriculture Minister Katrina Hodgkinson says the state won't be putting funding towards the package.
"It's a Commonwealth program, they've made it quite clear that they're funding this particular project," she said.
"It's their idea, they wanted the states to sign up to it."
She says there are fewer than 50 people in New South Wales who are likely to be eligible for the loans.
"I know that there's a couple of dozen people in New South Wales that are affected and that will benefit from the scheme.
"So it's not a huge number, but the consequences for these people if they don't get this assistance, for them, will be quite significant."
© ABC 2013
19:11 EDT Farmers from Tasmania's south-east corner are warning the region could be pushed to the brink of drought unless there is extra rainfall over summer.