The Fixing Country Rail program aims to improve freight movements across NSW.

Hilltops Council general manager Anthony McMahon said the Council has been working with Weddin, Cowra and Blayney Councils to try and get the rail line reopened from Blayney in the north right through to Demondrille in the south. 

"The NSW Government has previously allocated $5m to reopen the southern section between Maimuru and Demondrille. However, they have not yet released those funds for the works to occur," he said.

"We will now be considering whether a submission is put forward for the full or further parts of the line to the latest funding round announced by the Government.

"Some industry buy-in to leverage the Government's investment would assist with the business case for the Blayney to Demondrille project."

Member for Cootamundra Katrina Hodgkinson said applications are now open for the first round of Fixing Country Rail funding. 

"The $150 million provided for this first round is part of the $400 million Fixing Country Rail initiative, which will deliver a highly functional transport network across the state for moving freight in and out of regional areas, and will ease pressure on our local roads," she said.

"I encourage producers, councils, transporters, intermodal terminal operators and infrastructure managers to apply for funding.

"While Fixing Country Rail funding will only be allocated to rail asset owners and managers, input from the people who produce and move freight will be critical for ensuring we get the best 'bang for buck' with any upgrades."

Ms Hodgkinson said the program is all about improving transportation movements between farms, key freight hubs like grain silos, sale yards, rail heads, supermarket distribution centres and depots.