Latest figures announced by NSW Primary Industries Minister Ian Macdonald today show 65pc of NSW is now in drought, up 2.3pc on last month.

Mr Macdonald said locust eggs had been laid at about 900 properties in autumn and urged farmers to report locusts to the Department of Primary Industries.

"Most of the locust action is expected in the central and south-west of NSW, where the drought is biting its hardest," he said.

"The NSW Government is preparing a war plan to combat any potential plagues, with the support of Rural Lands Protection Boards."