The New England and North West region is continuing it's slow recovery from the worst drought in history, according to the latest DPI statistics.
The Department of Primary Industry's Combined Drought Indicator shows for the first time that part of region is out of drought.
The vast region covers from Tamworth to the Queensland border.
For the first time in years, some 6.1 per cent of the area is marked as 'non-drought', the highest possible level, while 4.4 per cent is considered 'recovering', one level down, according to the DPI tool.
All told, 10.5 per cent of the area is in the top two DPI categories.
The recovery is strongest across the Liverpool Plains and in the Warrumbungle Shire Council local government areas.
Last month's statistics showed every inch of the region was 'drought affected', the middle category of five.
That was itself an improvement on earlier in 2020, and a massive improvement on 2019.
At the height of last year's historically low rainfall year, 100 per cent of our region was classed as in "intense drought", the worst category. As late as April over 10 per cent of the region was classed as in "drought".
But as some parts have improved in the July assessment, other areas in of the Tamworth region have slid back into drought.
Some 0.8 per cent of our region is currently considered in 'drought' with 0.4 per cent in 'intense drought'.
That's because part of the area on the Queensland border in the northern part of the Moree Plains and Gwydir local government areas has gone backwards in the last month.
DPI uses three indicators - rainfall, soil water and plant growth - to judge the severity of drought across NSW.
Chair of Tamworth's NSW Farmers' branch Kevin Tongue said farmers were a "mile in front" of where they were last year in terms of weather.
But he said market problems are now a plague on the industry, with wool prices dropping over 30 per cent due to the COVID-19 pandemic.
"I would say we're in recovery," he said.
"We still haven't got a great deal of water in our rivers, creeks and streams.
"If it doesn't rain we could go into Spring with a very limited amount of soil moisture reserve."
He said coming into Spring farmers would be hoping for a change in the weather back to the intensely wet conditions of early 2020.