Farmers on Australia's east coast are being driven to the brink by devastating drought, with some regions experiencing the driest start to the year ever recorded.

In its monthly drought report released yesterday, the Bureau of Meteorology said June rainfall was below average for the Kimberley, south-western Western Australia, most of the Northern Territory and much of South Australia and Queensland.

But it's farmers in NSW – especially the far west and north-western areas – that are feeling the effects of drought the most.

The first six months of 2018 have been the driest on record for some parts of the country. Picture: Bureau of Meteorology (Bureau of Meteorology)

While NSW has been hardest hit, some parts of the rest of Australia have been crippled by the dry spell. Picture: Bureau of Meteorology (Bureau of Meteorology)

"While the dry spell is affecting all inland districts across the state, some of the most notable rainfall deficiencies during the last six months have occurred in the far west," Weatherzone's Ben Domensino said.

"Broken Hill collected just 18.2mm of rain during the last six months, which makes this their driest first half of a year in records dating back to the late 1800s.

"Further east, Cobar hasn't fared much better.

"The Cobar Meteorological Office's 24.4mm during the first half of 2018 was the town's lowest January to June total since 1902 and the second lowest on record."

Farmers want subsidies instead of loans as part of government relief packages. Picture: 9NEWS (9NEWS)

Conditions in some areas have been described as "third world". Picture: 9NEWS (9NEWS)

Brian Egan, the co-founder of rural support charity Aussie Helpers , said farmers were being forced to sell their breeding stock just to cover their day-to-day costs.

"Our main job at the time is trying to keep breeding stock alive," Mr Egan told Weekend TODAY on Saturday.

"Unfortunately, we're having a big problem with breeding stock.

"Farmers are having to sell, and have sold, 52 percent of the breeding stock in New South Wales because they can't feed the damn things.

"So they have to sell them for slaughter for meat so they can pay hay bills and other bills.

"It's becoming a natural disaster."

Beef prices in cities could be forced even higher. Picture: 9NEWS (9NEWS)

Aussie Helpers co-founder Brian Egan's charity provides support to struggling farmers. Picture: Weekend TODAY (9NEWS)

But Mr Egan warned an influx of rain wouldn't cure the issues plaguing the industry.

"When the rains do come – and they will come – because there's hardly any breeding stock left it's going to take years to grow more calves to get back in the market again," Mr Egan said.

"So you guys in the city are going to be paying exceptionally high prices for beef."

In last month's NSW Budget, Premier Gladys Berejiklian's government unveiled a boosted drought relief package of nearly $600 million.

The scheme includes loans of $50,000, interest-free for seven years, to be used to buy grain, fodder and install water infrastructure.

Weather experts warn conditions could get worse with the arrival of El Nino. Picture: 9NEWS (9NEWS)

But some farmers are wary of going further into debt and are instead calling for subsidies to put cash where it's needed.

"At the moment it's a tragic nightmare," Mr Egan said.

"We've got farmers living in poverty for God's sake, we've got farmers living in third world conditions.

"There's no water … some of them are having to go to the servos to have a shower."

MORE HEARTACHE ON THE WAY

The dry start to the year may not be the end of the heartache for farmers, with a possibility of El Nino developing in Australia this year.

El Nino is a Pacific Ocean climate driver that occurs when sea surface temperatures become significantly warmer and the heavy rain northern Australia usually receives is instead pushed elsewhere into the Pacific.

El Nino can be particularly damaging to eastern Australia, bringing reduced rainfall, warmer temperatures and increased fire risk.

Global effects of the 2015-16 El Nino. Picture: Bureau of Meteorology (Bureau of Meteorology)

The BoM's latest outlook, also released this week, suggested a strong chance of another El Nino period.

"Five of eight models indicate this warming will reach El Nino levels in the southern hemisphere spring, while a sixth model falls just short," the BoM said.