Environment Minister Mick Gentleman will unveil a 50 per cent freight subsidy scheme based on the one announced in NSW last week, with eligible farmers able to save up to $20,000 on the cost of transporting fodder, water or stock.

Drought-stricken farmers in the ACT and across the border have been forced to turn to feed suppliers as far afield as South Australia in an effort to keep their stock alive as the lack of grass creates an ever-increasing local demand for hay and grain.

The ACT subsidies, designed to relieve the financial strain on farmers who have had to fork out thousands of dollars extra to source feed from interstate, will be back-dated to July and made available for one year.

The NSW scheme also runs until July 2019 and is capped at $20,000 per farm, per year. However, it is back-dated to January 2018, meaning eligible farmers can save up to $30,000 on freight.

The ACT government will also announce $150,000 for what it calls rural resilience grants.

Eligible farmers can apply for up to $5000 to fund drought-related property management plans, and up to $10,000 for works and infrastructure designed to minimise the impact of continued dry weather on farms.

In a joint statement to be released on Tuesday, Mr Gentleman and Chief Minister Andrew Barr will admit that while the government has worked with farmers to deliver educational programs in recent years, the need for financial support can no longer be ignored.

The first six months of the year delivered 34 per cent less rainfall than the long-term average, while last month was the driest July in the ACT since 1982.

"It is clear ... that the current conditions require extra action," the statement says.

"The ACT government is confident these new measures will help our farmers to get through this difficult time and also prepare for the future."

The announcement comes on the back of a meeting last Wednesday between Mr Gentleman and the ACT Rural Landholders Association, in which association president Tom Allen pushed for subsidies in line with those available across the border.

While the territory is surrounded by a state that is officially 100 per cent in drought, there was, until now, no ACT-specific financial support on offer for farmers, who were only eligible to apply for up to $12,000 in emergency drought relief funding from the Commonwealth government.

Mr Allen said given that ACT farmers were battling the same transport-related cost pressures and relied on the same markets as farmers in NSW, it made sense for the territory government to introduce subsidies in line with NSW.

"I never had any thought that they wouldn't [provide financial assistance]," he said.

"We appreciate the government supporting farmers like they have done in the past."

Mr Allen stressed that the subsidies didn't mean farmers were out of the woods, saying it was crucial for them to be responsible and de-stock further if there wasn't significant rain before October.

"The farmers who aren't doing it as hard now are the ones who [de-stocked] before April, and October is when more big decisions will have to be made," he said.

John Starr, who has farmed at Gold Creek Station for nearly 50 years, also welcomed news of the financial leg-up for farmers.

He said he would have to look at the details before he could determine whether the subsidies were something he and son Craig could take advantage of, but said he had found freight subsidies helpful in the past.

"I'll certainly be looking at it," Mr Starr said, when told the ACT government would announce transport subsidies.

"The risk now is that we don't get spring [rain]."

The ACT government also plans to put together an inventory of unleased territory land that might be suitable for relief grazing.

ACT farmers interested in applying for financial assistance will be able to find the details at www.environment.act.gov.au from Tuesday.