FARMERS expect improved prices for produce this year as key markets recover from the downturn, but the outlook for the largest exports - beef and wheat - is less certain due to strong competition from American beef and improved world grain stocks after a big global harvest.
By the end of last year, there were signs of growing demand for sheep meat, dairy products and wool - all markets that had been hit by a sharp drop in prices.
However, the dollar's strength remains a challenge for the export-oriented rural sector, The Australian Financial Review reports.
In the past year, many farmers had better seasonal conditions than in recent years and the rains over summer have primed pastures and soils for a promising season in key NSW cropping and grazing regions.
The stronger dollar means farmers, who export about 60 per cent of their produce and must be competitive on global markets, have not seen the full benefits of the price recovery.
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