Fruit growers across NSW will benefit from an extension of the Special Conservation Scheme to include hail netting, Minister for Primary Industries Ian Macdonald said today.

Minister Macdonald said it was estimated the new measure would provide annual loan advances of up to $1.5 million to the fruit growing industry to help them install hail netting as extra protection for damage to fruit crops caused by hail.

"The Iemma Government has listened to the concerns raised by producers through the NSW Farmers Association and provided assistance to help sustain our valuable fruit growing industry," he said.

"Horticulture growers have faced huge challenges in recent years to be in a position to erect hail netting, either due to the lack of availability or the prohibitive cost of insurance for hail damage.

"In addition, there has been a spate of serious hailstorm incidents which have resulted in millions of dollars damage to valuable fruit crops - coinciding with the worst drought on record in NSW.

"By extending the current Special Conservation Scheme to include hail netting, individual fruit growers will be able to apply for up to $150,000 in funding through the Rural Assistance Authority to install hail netting."

Minister Macdonald said the hail netting assistance program would improve both production levels and reduce the production risk where netting is installed.

He said it would also reduce the need for future assistance under the Natural Disaster Relief Scheme.

"This program is an example of the Iemma Government putting in place practical measures to help producers deal with the natural disasters," Mr Macdonald said.

"We will continue to liaise closely with industry and provide assistance measures where possible to help producers remain profitable."

The RAA can be contacted on 1800 678 593.

Media contact: Lyndall Derrig 0400 462 447