Australian farmers will make money instead of losing it this year as the agricultural sector bounces back from the worst of the drought, the nation's commodity forecaster says.
Farm incomes are tipped to soar - tripling in some cases - after a horror 2006-07.
The wool industry will lead the way in the farm resurgence, with incomes tipped to increase threefold to the highest level in 20 years, according to the latest farm survey results posted by the Australian Bureau of Agricultural and Resource Economics (ABARE).
The survey also contains good news for beef, dairy and grain farmers.
Across the sector, farm cash income is tipped to almost double in 2007-08 to an average $78,200 per farm.
Returns will be back in the black with an average $11,900 profit against an average loss of almost $50,000 last year.
"Farm financial performance is projected to strengthen markedly in 2007-08," the ABARE forecast said.
"Increased grain and livestock production, combined with favourable commodity prices, are projected to result in farm cash incomes on broadacre farms nearly doubling in 2007-08."
Agriculture is recovering from a drought-ravaged 2006-07 during which crops failed, yields tumbled, cattle herds were slashed and costs rose. Incomes in some sectors fell to their lowest point in 14 years.
Now the tide has turned. The drought has eased in some regions and prices for some soft commodities are high.
Cash incomes for sheep farmers will rise 300 per cent to more than $93,000 per farm, the survey found.
Better weather and pastures will mean higher quality wool at a time when wool prices are strong.
Dairy incomes will recover strongly this year due to relatively high milk prices, with cash receipts to increase by 26 per cent.
Herds are smaller and less milk is being produced because of the drought, but the milk is worth more.
Beef farmers lost money last year, but in 2007-08 they will make almost $30,000 in average profit.
Better conditions mean farmers will hold on to their cattle instead of selling them, but declining sales will be more than offset by an increase in the value of stocks.
Grain grower incomes will rise by 31 per cent as improved weather boosts production, especially wheat.
© 2008 AAP
