Landholders in north west NSW are in dire financial straits and urgently need government assistance, according to a local farm finance advisor.
Despite recent rain in central and southern NSW, the drought situation in the north west is worsening and financial pressure is growing.
Sharon Knight, the executive officer of the Bourke Rural Financial Counselling Service, advising clients across an area of over 70,000 square kilometres, says with very little stock feed and water, the situation is desperate.
"Up until recently they've been able to source cotton seed locally; unfortunately that's all exhausted now and they're having to get it from further afield," she said.
"So (it's) not only the cost of the cotton seed, which has gone from $190 up to $350 a tonne, it's the cost of the freight to get it here, because now they're having to source it from 600 kilometres away"
© ABC 2013
15:09 EDT Towns and cities across Australia's southeast have shivered through a very cool and cloudy Australia Day.