Ag staff support a priority

"That package is very close to being put forward," he said.

He said it would propose further adjustments to the $420 million Farm Finance package announced by the previous Labor government last April and tweaked by Agriculture Minister Barnaby Joyce after his appointment to the Agriculture portfolio.

Mr Finlay said the NFF's response would also include support measures to retain agricultural workers, which was a regular theme raised during the weekend's talks.

"Often in a drought workers leave rural communities and once they leave, they don't come back," he said.

"In a lot of cases these are highly skilled farm employees operating sophisticated machinery with specific skills to handle livestock or cropping.

"You can't afford to lose that expertise."

Mr Finlay said there was growing "bewilderment" and "confusion" in NSW about government responsibility for drought support, given the current transition away from the federal Exceptional Circumstances program towards the new drought policy signed off by the previous Labor government.

"It appears we've landed right in the middle of a situation where there's no such thing as drought declaration and a process of transitioning from one mechanism to another - people are very confused," he said.

Mr Finlay said State governments were saying they had no money but they still had a major role to play supporting the agricultural sector's battle with drought, especially in key areas like water and fodder provision.

"It's not just the federal government that needs to play a significant role here - States need to pitch in as well," he said.

While the NFF praised Mr Joyce's response to the current drought crisis, Opposition agriculture spokesman Joel Fitzgibbon labelled it "confused and chaotic".

Mr Fitzgibbon said the minister's response left farmers "with little confidence the Abbott government is capable of addressing their needs".

"And today he has said more needs to be done to address drought issues but can't say what he will do, what proposals he will take to the federal cabinet and if the cabinet would even support it."

Mr Fitzgibbon also highlighted Treasurer Joe Hockey's response to the drought crisis on Monday, in telling struggling farmers "they should speak to the people that they owe the money to".

"Given the Treasurer's slap-down of Minster Joyce and in the wake of the Coalition's callous disregard for jobs at Holden, SPC or Qantas, Australian farmers won't be holding their breath for support from this government," he said.