"It's still surprising every time I get an award!" the 16-year-old said.

"You go to Tamworth and there's always so many people who are so good and really great to watch."

The Folk Federation's accolade has given her $500 to put towards equipment or her career, and she will receive mentorship as well as a place on the line-up for next year's Sydney Folk Festival, which she described as "really exciting".

"I was meant to play at the festival this year, but it was cancelled this year," she said.

READ ALSO: Festivals face uncertain future under COVID-19 restrictions: 'There's no clarity'

For her submission, she entered a music video of her song Blue Skies.

"I wrote Blue Skies early in December last year, before the fires started," Felicity said.

"I was writing it about drought and incorporating natural disasters, then filmed the video during the fires when it was smokey."

At last year's Tamworth Country Music Festival, two of her songs were named as finalists in the youth category of the Tamworth Songwriting Association's (TSA) national annual awards, and the year before she was accepted into CMAA's Junior Academy of Country Music.

Her star has risen fast as she only started performing four years ago.

"It has been quick, and a bit of a shock because no-one in my family is really into music!" she said.

From this year's devastating bushfire season she has gone into the COVID-19 pandemic, which resulted in her losing some gigs, but she said she understood why the shutdown was necessary.

"I'm lucky I'm not full-time on music yet," she said.

"I imagine for people making their living off it that it would be hard these days."

READ MORE: 'Artists fall through the cracks': Musicians find new ways to survive during COVID-19

Instead of playing gigs she has been working on her skills, applying for festivals next year, preparing for when she can perform again and working out how to release Blue Skies as a single.

Felicity wanted to thank Cobargo Folk Festival for its support over the years.

"They've let me me play on their youth stage for the last few years and I think that's been a great help for my career," she said.