Vicki Conrad, the area's NDP member of the legislature, says the money is needed to help woodlots that are struggling after the closure earlier this year of the Bowater Mersey paper mill near Liverpool.
Conrad says the money will be used to build and upgrade forest access roads.
The funding is being managed and distributed by the Forest Products Association of Nova Scotia.
The new money will be added to a $1-million fund announced by the province in July for woodlot owners.
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