A drought package worth more than $300 million will be unveiled today by the Federal Government.

Cabinet met last night to finalise and sign off on the package, which the ABC has been told is worth between $320 million and $330 million.

About $280 million will go towards increasing access to government-backed concessional loans, which can help farmers restructure their debt, deal with low cash flows and survive the drought.

Prime Minister Tony Abbott has already announced he will bring forward new welfare payments for struggling farmers from July.

The package is also likely to include help for people battling mental health issues and depression.

Senior ministers have also discussed providing additional money to farmers for water infrastructure and pest control.

Mr Abbott and Agriculture Minister Barnaby Joyce, who toured rural Queensland and New South Wales earlier this month, will announce the full details today.

Large swathes of both states have not had significant rain for two years.

Mr Joyce told AM the situation was completely different to the regular dry periods that farmers expect.

"Of course, only the good Lord and rain will ever fix the issue. But this helps along the process," he said.

"These are mums and dads - not multi-billion-dollar organisations - they're mums and dads who have tried to manage the situation for an extended period.

"If a person has been a year-and-a-half without any income, no solid rain at the moment, can't get a crop in, they're more than six months away from further income ... they have a right and an expectation the nation should assist."

The Opposition's agriculture spokesman, Joel Fitzgibbon, says the centrepiece of the package is "the very initiative Labor's been calling upon him to act on over the course of the last month".

"We'll hold our final judgment on the package until we've seen it today but we will welcome a significant investment in a very, very significant problem," he said.

Queensland Agriculture Minister John McVeigh says the Federal Government needs to ensure any funding package protects non-farm jobs and the wider rural communities.

"I'm hopeful that the Federal Government will heed the message to ensure that we are supporting the local communities," he said.

"[We need] assistance for local employees, not only those working on farms but in businesses in town."