Producers with permanent plantings can now access the On-Farm Emergency Water Infrastructure Rebate.
Federal Member for Lyne Dr David Gillespie said the rebate will help save valuable trees and vines.
Horticulture is a valuable industry for our region and this will help protect it during the drought," Dr Gillespie said.
"Trees and vines can take years to produce fruit. Growers shouldn't have to start over once the drought breaks.
"This will let eligible growers claim the rebate on installing new bores or desilting dams.
"This will both make better use of water and make water more available across valuable permanent plantings."
Minister for Drought David Littleproud said the federal government had taken steps to make sure there was enough money to expand the scheme.
"An additional $13.2 million in funding is being made available to make sure demand for the scheme is met," Minister Littleproud said.
"Growers in drought affected areas can claim 25 percent of expenses, up to $25,000 on eligible projects started after June 30, 2019."
The scheme can be accessed through the NSW Department of Primary Industries.