The decision was prompted by requests from Gov. Mike Easley. Before the announcement, 54 counties in the state had emergency status.
Farmers now can request monetary help from the federal government, said John Johnson, USDA deputy administrator for farm programs.
About 90 percent of the state's approximately 56,000 farmers were affected by the drought, said N.C. Deputy State Statistician Craig Hayes.
He said some farmers who apply will be eligible for federal emergency loans and the Livestock Compensation Program, which gives livestock producers set payments for their cattle.
"The Livestock Compensation Program is a very valuable form of assistance for producers in these counties," Hayes said.
State officials said the aid will be beneficial to farmers because of the extent of damage from the drought.
"We've had a horrendous year for farming," said Peter Daniel, assistant to the president of the N.C. Farm Bureau.
The Farm Bureau worked with the USDA and the N.C. Department of Agriculture to secure the emergency relief funds.
Farmers, their crops and their livestock suffered greatly from recent weather extremes and now are facing financial ruin, Daniel said. Farmers often are forced to compete with the needs of small towns for things like water, resulting in the spreading of resources at a time when few are available.