Mr Butler has hit out at the NSW government, questioning if they're "actually listening and learning", in response to the NSW government's $310 million drought package.

The package will see the lifting of the cap for the Drought Assistance Fund to $100,000 per eligible primary producer and extending the Drought Transport Subsidy to cover the cost of transport for restocking.

Deputy Premier John Barilaro said the funding would "provide ongoing support to farmers still battling drought, while helping to accelerate recovery for producers who have seen conditions improve".

But Mr Butler is calling it a "debt trap".

"For over 12 months now, I have been talking about the need for cash based drought assistance, and the need for a cash based resowing and restocking grant," Mr Butler said.

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"I have used every avenue available to me to get the government to listen to what the farmers are telling me - loans are not the answer to our calls for help.

"I have been pushing for a resowing and restocking grant for months now to give agriculture the kick start it needed to get back going."

The Shooters, Fishers and Farmers developed a resowing and restocking grant policy.

Under the policy, grants up to $400,000 would be available for restocking livestock or sowing crops. Applicants would then repay 50 per cent of the grant.

"The Shooters Fishers and Farmers Party's policy, developed in partnership with farmers recognises that agriculture in NSW is a $13 billion industry that is one of the least subsidised in the world, and importantly it recognises that after years of drought loans are unattainable for many farmers," Mr Butler said.

"Importantly, considering many of our farmers have restocked, and sown crops, it would allow farmers to recoup the funds they've already sunk into recovery.

"Many farmers have been forced into low document loans, debt traps by any other name, 12 per cent through to 18 per cent interest. If we want a viable and locally owned agriculture sector government can't be negligently opening doors to debt traps."

Mr Marshall said the expansion of the support packages would help farmers who were in a position to look towards drought recovery.

"Many of the state's farmers are now emerging from drought conditions, and many more will come spring, and these changes to our support package create more flexibility, allowing that road to recovery to be much shorter."

More than 21,586 applications have been approved since 2018 through the DAF and DTS.