Primary Industries Minister Ian Macdonald said recent figures indicate drought conditions exist in 65 percent of the state, marking a 2.3 percent increase from June, The Sydney Morning Herald reported in its Sunday edition.

Macdonald said in addition to the ongoing drought, at least 900 properties in the state have been found to be housing locust eggs.

The minister said those eggs could create a major locust swarm that could threaten regional crops in the spring, the Herald reported.

"Most of the locust action is expected in the central and southwest of NSW, where the drought is biting its hardest," Macdonald said.

"The NSW government is preparing a war plan to combat any potential plagues, with the support of Rural Lands Protection Boards."