Drought-stricken farmers and rural communities will soon share in $333 million of Federal Government support.

More than 70 per cent of Queensland and parts of northern New South Wales are in severe drought, with some areas not seeing decent rainfall in three years.

The Government has announced a package that includes measures to boost regional economies along with $250 million to continue concessional loans.

"The concessional loans issue is important because it keeps the banks honest in the rates they're charging people," Agriculture Minister Barnaby Joyce said.

"[The package] rolls over $250 million in concessional loans, loans that otherwise would have stopped on the 30th of June," he said.

"This is incredibly important for people who have yet to apply for these loans.

"This assists the councils, and others in the area, apply for funds to make sure they get projects underway that are pertinent to their area and also get people employed in their area."

The Commonwealth Government will also provide:

$35 million for "shovel-ready, local infrastructure and employment projects" to stimulate local spending

$35 million for "shovel-ready, local infrastructure and employment projects" to stimulate local spending Nearly $26 million to manage feral animals and weeds, including rural contractors helping landowners

Nearly $26 million to manage feral animals and weeds, including rural contractors helping landowners $20 million to expand social and community programs, including mental health support and nearly $2 million for more financial counsellors.

Prime Minister Tony Abbott, who travelled to Longreach in Queensland to make the announcement, said it was vital farmers and regional communities stay afloat.

"It is crucial these communities remain viable and that people stay in jobs so that they can take advantage of better conditions when the drought breaks," Mr Abbott said in a statement.

"Helping farmers through times of drought is in our national interest.

"This Commonwealth Government investment is an acknowledgment of the difficulties being experienced by farmers and by the communities they help to sustain."

The Government said measures would also be announced in the Agricultural Competitiveness White Paper.

"This is not the end of what we're going to do to assist people with the drought," Mr Joyce said.

"There'll be further announcements that we have negotiated for and bargained for and they will be announced in the budget."