There are fears the dumping of the state drought co-ordinator could hurt the Namoi region as it loses a sympathetic and experienced ear in Jock Laurie.
Namoi Unlimited says the NSW government "must explain why this role has been removed" and how it will tackle drought policy and assistance after Mr Laurie is made redundant from his position today.
The news has come as a shock to many, after Mr Laurie began in the role less than 12 months ago, tasked with identifying gaps in and barriers to accessing drought support.
Namoi Unlimited chairman Jamie Chaffey said it was "disappointing" and "confusing" for the move to be made during the worst drought on record.
The seven-council organisation has called for the position to be "reinstated and resourced".
"We have concerns it could damage the momentum we currently have in working with the government to identify solutions for the Namoi region, which is one of the worst-affected drought areas of Australia," Cr Chaffey said.
Mr Laurie, a livestock farmer near Walcha, was National Farmers Federation president from November 2010 until stepping down in April 2013 to run for National Party pre-selection in the Northern Tablelands.
Cr Chaffey said Namoi Unlimited worked hard "to let those in other tiers of government know the pain our communities are going through" and "to take a link out of that chain is a concern".
"It's vital to have an advocate that is from the land, who understands the pressures of farming, the pressure on smaller communities during the drought, and what potential incentives and initiatives that could help us to get through in the best shape we can be.
"It's disappointing that a person of that calibre is no longer there - a person who won't sugarcoat the message, who tells it as it is, who's lived it."
Mr Laurie would not comment on the issue yesterday, saying he was still a government employee.
However, Cr Chaffey said he'd spoken with Mr Laurie "and thanked him personally, and on behalf of the wider Namoi Unlimited community, for the outstanding job he has done".
NSW Deputy Premier John Barilaro said the government would, instead, set up an "office of drought response" in the Department of Planning, Industry and Environment.
"State drought co-ordinator Jock Laurie played an important role in helping to lead the immediate response to the drought on behalf of farmers," Mr Barilaro said.
"His contribution to regional NSW during the most severe drought on record has been outstanding."