In NSW, the ACT and parts of Queensland, farmers are sourcing their hay interstate as the extreme dry conditions continue. In NSW alone, about 99 per cent of farmers are dealing with drought conditions.

NSW received just half its typical rain in the first half of 2018, making it the driest start to any year since 1986. It was also the state's hottest on record for the period for daytime temperatures.

Australian Fodder Industry Association chief executive John McKew said hay and fodder products were becoming increasingly more difficult to source.

"There has been exceedingly strong demand for four or five months leading out of autumn and a lack of a reasonable autumn break for many livestock producer so feed on farm have not been available because we haven’t had any rain leading into winter," Mr McKew said.

"We’re finding that hay stock right around the country at the moment are getting very light at the moment and that situation isn’t going to improve any time soon."

He said the increased demand was to the point that over the last few months, the oversupply of hay from the last two seasons had been "cleared out".

Farmers, like Mark Horan from Braidwood, are driving to Murra Warra in Victoria, 900 kilometre away to get hay. Mr Horan has made the trip 18 times.

"There is certainly hay around but some producers are holding onto their stock to feed their own livestock or they have contracts to supply to particular customers," he said.

"We are seeing a lot of hay being transported around the country."

Mr McKew said some hay producers were operating 24/7 to deliver their supply to NSW and Queensland.

He said the association had turned its attention to getting the stock back up, but says it would take a little while.

"There's already crops growing at the moment but some of the crops are behind where they should be at this time of year and that’s a result of the rain," he said.

"I’m not expecting the forthcoming hay production to be particularly strong unless there’s a turn around in weather conditions."