Australia will offer farmers hurt by drought up to 1 billion Australian dollars ($690 million) in cheap loans, Prime Minister Scott Morrison said on Thursday, as the government seeks to curb rising discontent from rural voters.

Farmers across Australia's east coast have been battling drought conditions for more than three years, wilting agricultural production and leaving some towns on the brink of running out of drinking water supplies.

With growing anger amongst the conservative government's traditional voter base, Morrison offered new financial aid, including temporary interest free loans, designed to allow farmers to stave-off bankruptcy.