Agriculture, drought hitting the rural sector hard

The net value of farm production is forecast to fall by 63 per cent to $3.7 billion in 2002-03, reflecting a sharp fall in winter crop production and lower prices for most livestock products. Winter crop production in 2002-03 is forecast to decline to 22.2 million tonnes, 15.1 million tonnes below last season's crop and the lowest since 1994-95. Although grain prices have risen strongly in recent months as a result of poor crops in major exporting countries, lower prices for beef, sugar, and dairy products are forecast to contribute to a 5 per cent fall in the index of prices received by farmers in 2002-03.