Nigel, who farms with wife, Kate, has applied holistic management tools such as cell grazing, pasture cropping and small paddock structure to significantly boost productivity - in spite of drought.

NSW Primary Industries Minister Ian Macdonald said Nigel's ability to adapt from a traditional form of farming to a more regenerative approach was a great story to share.

"In addition to his environment initiatives, Nigel and his family adopted the production of high quality, wrinkle-free sheep that require less labour," he said.

Tally Matthews won the Young Farmer of the Year award.

NSW Farmers' Association President, Jock Laurie said Tally, a turf and vegetable producer at Ebenezer was an outstanding industry leader.

"Tally is an excellent example of what our young farmers are able to achieve today through gaining experience in a range of industries," he said.

Judges in this year's awards, the fifth to be held in NSW, also paid tribute to the three finalists:

- Kim and Stephen Roberts, who run a small piggery Bundawarrah Free Range Pork and produce saltbush lamb, with established markets in Sydney, Canberra and the South Coast;

- Chris Mirams, who together with wife Jacinta manages 'Woomargama Station' near Holbrook with a sheep, cattle and grass production and is heavily involved in Evergraze and Landcare; and

- Ben Watts (young farmer finalist) who with wife, Fiona, operates a sheep breeding operation near Molong, marketing their product as non mulesed EU-Eco label. Ben successfully led Australia's bid to host the 2010 World Sheep and Wool Congress.

"This year's finalists have impressive stories to tell about innovative ways to approach challenges like climate change, consumer demands and product marketing," judging panel chair and Cobar farmer, Marie Russell, said.

* For further coverage of the NSW Farmers Association annual general meeting, see The Land.