The committee issued a statement explaining the reason behind the difficult decision. "With current and ever-changing COVID-19 restrictions on numbers attending the event and numerous other restrictions, we could not proceed," it states.

However, the committee is planning to hold the event in 2022.

READ MORE: Binda Picnic Races cancelled due to wet weather, others cancelled over coronavirus fears

The annual event is usually attended by hundreds of people who travel interstate to attend the community event.

Binda Picnic Races was called off in 2020 as well shortly before horses were due to leave the starting gates, following Racing NSW's decision that the track was too wet and dangerous.

It was estimated that the committee would lose $10,000 from hiring toilets, generators, paramedics, police and staff last year.

Meanwhile, preparations are on for Goulburn Show with organisers keeping a close eye on the COVID-19 situation. Goulburn Show Society president Jacki Waugh confirmed the event is going ahead this year on March 6-7 pending COVID-19 restrictions at the time.

In Southern Highlands, the decision to cancel 2021 Bowral Show was announced this month.

Peter Howard, president of Bowral Show Inc, issued a statement on January 3, 2021, which read, "Due to the uncertainty of the current state of Covid 19 affecting the greater Sydney area/Wollongong and Canberra, which all surrounds Bowral, our committee has decided that the potential public health risk that this poses, is too much of a risk to the local community. Based on this we have regretfully resolved to cancel the Bowral Show for 2021."