Drought transport subsidies for cattle farmers in Queensland will be scrapped after an independent review by the State Government.

Key points: Currently, drought-affected producers can get up to 50 per cent back on freight costs

Currently, drought-affected producers can get up to 50 per cent back on freight costs It will be phased out by 2021 or before, at the end of current drought declarations

It will be phased out by 2021 or before, at the end of current drought declarations Qld Agriculture Minister Mark Furner calls the scheme "outdated"

Will Wilson is one of many producers who have relied heavily on the freight subsidy to supplement food and water during severe drought periods.

He is worried the cut will take a further mental toll on already struggling graziers.

"When [farmers] have got their backs to the wall, any help they can get, they need," he said.

"[I'll be] quite disappointed if it's taken away."

"The people further west that have been in 8-10 years of drought, news like this is poking the bear," he said.

"Freight subsidies have probably been the biggest advantage, because you can get hay or molasses or move cattle to where you need to."

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Currently, drought-affected producers can get up to 50 per cent back on the freight costs of trucking in water and food to their properties.

The "vital" cash rebate will be scrapped at the end of a region's current drought declaration.

The subsidy has paid out about $4 million over the last five years.

Moving toward 'a new model'

Agriculture Minister Mark Furner said the subsidy did not align with national drought policy, but also hinted the change would force farmers to better plan for drought conditions.

"The fundamental issue is planning for drought," he said.

"We need to make sure that farmers, that businesses, pre-plan their arrangements in terms of dealing with drought.

"Most primary producers realise that drought is here forever, and they're allocating their time and efforts and planning, in dealing with drought into the future.

"The Department will assist primary producers in the transition to that over the next two years."

Farmers who receive the transport subsidies will continue to get that help until their properties are no longer drought declared. ( ABC Longreach: Melanie Groves )

The review was conducted by Charles Burke, the former chief executive of rural lobby group AgForce, and Ruth Wade, the former chief executive of Queensland Farmers Federation.

Mr Burke said the recommendations focused on drought preparedness rather than assistance measures that are reactive to drought.

"Our charter was to come up with recommendations that would assist Queensland's primary producers and the agricultural sector to become more resilient when it comes to dealing with drought and that's the prism we looked through to create the report," he said.

Despite backlash over the subsidy cut, Mr Burke maintained it was an outdated scheme.

"As part of the National Drought Agreement 2018 there is no other jurisdiction that utilises those transaction subsidies so the evidence all pointed towards moving to a new model," he said.

The review was handed to the State Government in January, but controversially was not released until today.

More than 65 per cent of Queensland is currently drought declared.

More than 65 per cent of Queensland is currently drought declared. ( ABC Longreach: Melanie Groves )

Chief executive of rural lobby group AgForce Mike Guerin said industry was concerned the popular scheme would end.

"These recommendations need some work in our view from the initial read of it, but the idea of investing more in an industry in a preparedness sense and allowing that industry to stand more on its own feet through the inevitable drought cycles is something that we welcome," he said.

The Government said it would adopt all but one of the 20 recommendations, committing to continue mental health and welfare support for struggling producers.