The entire state of NSW has been declared in drought after a drier-than-expected June and July.

According to the NSW Department of Primary Industries, 61 per cent of NSW is either in drought or intense drought, while nearly 39 per cent is drought affected.

June and July have been much drier than expected, resulting in failing crops, water shortages and a diminishing supply of fodder to sustain stock, Primary Industries Minister Niall Blair said in a statement on Wednesday.

Only 0-10mm of rain have been recorded over the past month in the Western, North West and Central areas of NSW, he said, adding: "This is tough, there isn't a person in the state that isn't hoping to see some rain for our farmers and regional communities.