Gilmore MP Fiona Phillips has criticised the Federal Government for taking six months to amend criteria for the Special Disaster Grant to enable more farmers to access it.
Previously to be eligible for the grant farmers had to earn 50 per cent of their income from the farm.
Mrs Phillips argued this meant some farmers who suffered through drought and had divested would miss out.
The Special Disaster Grant Bushfires is funded jointly by the NSW and Federal Government, and gives up to $75,000 to primary producers impacted by summer bushfires to assist with the costs of immediate clean-up and repairs, where those costs are not covered by other assistance measures or existing insurance policies
The Gilmore MP questioned why it took so long to change the criteria.
"Our farmers have been suffering under a drought the government denied they were in for years - but when the bushfires came, many were again left out in the cold by this government," she Phillips said.
"Farmers have told me how having their requests for help denied felt like another huge blow from a government that had let them down."
Federal Minister for Agriculture, Drought and Emergency Management David Littleproud said the government will continue to be "agile".
"Both Federal and state governments have continually demonstrated since this year's Black Summer commenced to adjust long established disaster support programs to meet the sheer scale of this disaster," Minister Littleproud said.
"We will continue to be agile if and when required in partnership with the states as we have consistently demonstrated in addressing one of the biggest natural disasters in our countries history."
Mrs Phillips said on the same day the Minister made this announcement, a decision was made to reject a local farmer's application which didn't meet the threshold.
"Now we know that all they needed was a small change from the Ministers - so why have local farmers had to fight for it for months?
"The Morrison Government has once again inflicted unnecessary pain on local farmers because they refused to listen."
The government have since extended the deadline for applications until December 15, 2020 and those who have applied for the grant but been rejected will be reassessed.