The New South Wales Farmers' Association says a national drought package should be able to determine landholders' needs on an individual basis.
The scheme, which is being rolled out in 2014, is being discussed by federal, state and territory agriculture ministers at a Standing Council of Primary Industries meeting today.
The Association's president Fiona Simson is calling for the plan to be two-fold; to teach farmers how to prepare for drought and help them when times are tough.
She says the plan should consider unique circumstances, instead of taking a blanket approach like the previous Exceptional Circumstances program.
"The boundaries have been drawn on geographical areas and I think everybody has now acknowledged that that has not been the best way of assessing whether an area or whether a farmer is in actual need of financial help or drought relief or not," she said.
"So, there has been a focus, there's been quite a review over some months now about a better way to do it."
"The discussions have talked about first of all preparedness in terms of some measures that we might take to help farmers get into better financial positions when the times are good and also relief when you're actually in the grip of that very bad drought," Ms Simson said.
© ABC 2012
13:21 EST A hail storm barged through Sydney yesterday afternoon, bringing 1-2 cm sized pellets and heavy downpours.