Sens. Tom Udall and Martin Heinrich say the assistance is being expedited. Signups will begin in 60 days.
Across the West, livestock producers have been struggling with several years of drought. In New Mexico, conditions reached unprecedented levels last year.
The senators say New Mexico's statewide herd size has been reduced by 50 percent as a result of the last few years of drought.
The federal assistance is aimed at helping ranchers who had grazing and livestock losses due to drought.
The farm law makes assistance retroactive and renews the disaster aid program for another 10 years.