Cabinet is expected to sign off on the plan on February 24, informed by the visit of Prime Minister Tony Abbott to drought-hit areas.

The heavens opened just 10 minutes after Mr Abbott arrived at a cattle-feeding point on Jandra - the 40,000 hectare family farm owned by Phil and Di Ridge outside Bourke in western NSW.

“It's very important to see and feel how you guys live,” Mr Abbott said, having given up a seat in an air-conditioned four-wheel-drive.

Mr Abbott later told a community gathering at a woolshed, as the rain drummed on the tin roof, that the government’s response to the drought would cover three areas: income, finance and social support.

“It will be fair and responsible,” he said.

Sheep and cattle farmer Mr Ridge said if the government did not address rural debt, estimated at $70 billion and rising, then “Australian rural industry has had it”.

He said more funding for weed and pest animal control as well as education allowances would ease the burden.

“We need money to fight a drought,” he said.

“We just can’t get ahead." 

The farm received only 120mm of rain in 2013 and Sunday's rain during the PM’s visit was the first for the year.

A typical year brings 350mm of rain.

Seventy per cent of Queensland and more than half of NSW is in drought.

Mr Abbott said despite the best intentions, sometimes it was impossible for farmers to prepare for drought.

“Drought is for farmers what flood and fire are for people in other parts of the economy. It’s a natural disaster,” he said.

“If you are a good farmer you factor a certain amount of drought into your ordinary business plan but occasionally you get hit by a drought which is not routine, it’s something that happens every 20 or 50 years, in the same way you get a once in 20 or 50 years flood.”

“The important thing is that we get an intelligent response to the problem of drought which is fair and responsible and that is what the government intends to put in place fairly swiftly.”

Agriculture Minister Barnaby Joyce said he believed people in city areas would back a “significant” government support package.

The government has in recent times rejected funds for Holden and SPC Ardmona, despite Mr Abbott after the election declaring Australia was “open for business”.

Opposition Leader Bill Shorten said Labor would back appropriate measures for farmers and rural communities.

“We are certainly ‘open for business’ when it comes to assisting our farmers,” Mr Shorten said.