It is estimated a quarter of NSW moved out of drought in the past month.

Now a total of 39.8 per cent of NSW is drought declared.

This month’s figure is less than half what it was in December when a whopping 81pc of NSW was in drought.

It marks the biggest loosening of the dry’s grip since March, 2004.

Large financial debts remain and many farmers will continue to set their sights on fighting the cash drought.

The vast majority of northern NSW is either “satisfactory” or “marginal”, except for two pockets that reach to the Queensland border.

The first is a piece of the State located north of Armidale, east of Moree and west of Glen Innes, and the second is between Wanaaring and Milparinka.

The lucky NSW towns of Cobar, Dubbo, Goulburn and Wilcannia moved out of drought in the past month.

Almost a third of NSW is “satisfactory”, compared to 6.2pc last month, while 29.6pc is “marginal”, a small increase on a month ago.

Armidale, Coonabarabran, Coonamble, Mudgee, Narrabri, Nyngan, Tamworth and Walgett have moved from “marginal” to “satisfactory” since February.

Unfortunately, the vast majority of southern NSW – while making a small comeback recently – remains drought declared.

Meanwhile, the NSW Farmers Association has expressed its “extreme concern” at a decision made by the Federal Government not to grant the Bundarra area exceptional circumstances drought status.

NSW Farmers president, Charles Armstrong, said the area had contined to experience dry conditions since it had been removed from exceptional circumstances in April 2009.

It was difficult to understand how the Government could state rainfall had not fallen within the one in 20-to-25 year range of severely deficient when farmers’ records showed rainfall had been the lowest in 45 years, he said.

The Bundarra district remained drought declared in the latest monthly drought figures for NSW released this week.