Farm profits to dive by 70 per cent as drought and costs bite

The winter wheat crop is forecast to drop 12 per cent as farmers struggle with high input costs as well as drought in some states. (ABC Rural: Emily Doak)

ABARES is forecasting a fall of 21 per cent in winter crop production across Australia.

Farm profits are likely to be significantly lower due to high prices for fuel and fertiliser

Welcome rain has fallen across some affected areas in recent days, and many farmers remain positive about the future.

The lingering drought and soaring input costs mean there are tough times ahead for the nation's farmers, according to the latest report from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

Its June quarterly report shows that winter crop production across the nation is forecast to fall by 21 per cent, as the value of agricultural exports shrinks by $7 billion.

ABARES executive director David Galeano said farmers would feel the impact.

"Due to cost pressures, [broadacre] farm-business profits will be down 70 per cent on last year to about $65,000 per farm, and in parts of NSW those falls in profit will be even larger," he said.

"That area of farms sown to crop in NSW looks like being down by a third."

While rain is improving the situation in NSW, it came too late for many growers to plant a winter crop, and the forecast for winter is for drier-than-average conditions.

But the crop in Queensland could be down as much as 35 per cent.

Brendan Taylor says it is not too late for some farmers to plant fast-growing wheat varieties or chickpeas. (ABC News: Brandon Long)

Brendan Taylor, president of farm lobby Agforce Queensland's grains board, said areas affected by drought in that state have had some rain, but it may have come too late for some to plant.

"Once you get east of Dalby and south of there ... they'll be wet enough to plant but questionable subsoil moisture, which will be influencing their decisions on maybe reducing their areas or sitting it out and targeting an early summer," he said.

The value of Australia's farming produce is tipped to reach its "ambitious" $100 billion target this financial year, but experts warn the value could dip again in the face of trying trade and seasonal conditions.

But Mr Taylor said it was not too late for some growers to plant fast-growing wheat varieties or chickpeas, particular in central Queensland.

"I know some guys up there that are planting more in the next week," he said.

While production is down in some regions, costs have been rising across the board, and this is expected to reduce profits significantly.

"But de