Third-generation farmers Graham and Neil Privett are storing as much feed as possible on Glenleigh, their 950-hectare grazing property near Yass, in case substantial rain does not fall in autumn, leaving them facing a grim winter.

Pasture has already been eaten down to bare earth on many sections of the property which their grandfather settled in the 1800s.

The 1981 drought sticks in Graham Privett's mind as the worst in his lifetime, when all the family's cattle and many of the sheep were sold.

Northern Australia's drought and collapsing export markets in Indonesia have forced farmers to de-stock, and many hungry cattle have come onto the markets in NSW, depressing prices throughout the state.

''I was talking to an agent the other day and he said they sold 200-kilo calves a fortnight ago, they only brought $120 [a head],'' Mr Privett said.

Phil Graham, NSW Department of Primary Industries technical specialist in grazing, said feed and water were becoming scarce in the Yass district.

''Things are looking fairly negative,'' Mr Graham said. ''About drought? Who knows with [drought] declarations these days. Overall it is not looking too good at all.''

The Privetts run 3500 sheep and 160 Angus cattle. They are feeding the cattle three days a week with hay they baled last year from clover and rye grass.

''We have never had to feed them this early,'' Mr Privett said.

The brothers expect feed to become scarce and prices for it throughout southern NSW to rise as the long dry stretch continues.

''All up through Holbrook, right through the back of Wagga, Temora, right through that area, late frosts buggered most of their grain. They didn't get near as much grain as they thought they would,'' Mr Privett said.

''That's a big loss to this area because we source all our grain from up that way. One chap who I normally buy off didn't have a truckload even that he could let us have this time.

''Feed is so dear to buy. We got 32 tonne of lupins the other day, they are $400 a tonne. I ordered 40 tonne of corn - whether that comes or not depends on how they go when they strip it, I suppose.''

That was just to get the ewes and lambs through winter, he said.

The dams in Glenleigh's paddocks are half full. Mud on the dam bottoms is regularly excavated, maximising storage for dry periods.

Manton Creek, a permanent stream from the hills, also helps keep water up to the Privetts' stock.

The creek runs for about 500 metres before disappearing and continuing underground between two sets of railway lines, then returning to the surface.

Reliance on it will become more critical unless rain arrives.