The NSW Environment Protection Authority (EPA) issued the fine after finding that pesticides had drifted more than 200m onto a neighbouring farmer's property, including an olive grove plantation.

EPA northern regional director Adam Gilligan said pesticides must be used as instructed on the product label and conditions to protect the environment and human health.

"When spraying pesticides, operators should be aware of any potential impact on their neighbours and the environment," Mr Gilligan said.

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"Using pesticides in windy conditions can cause unintended impacts on the environment and others."

A member of the public contacted the EPA on March 22, saying pesticides had been used on a property with a spray boom in high wind conditions.

Penalty notices are some of the tools the EPA can use to achieve compliance.

It can also issue formal warnings, notices and directions, enforceable undertakings, legally binding pollution reduction programs, mandatory audits and prosecutions.

The EPA said it was "actively working in partnership with a number of farming communities throughout NSW to raise awareness in best-practice use of pesticides".