“Earnings from both farm and mineral resources exports are forecast to increase in 2008-09,” Mr Glyde said.

Farm export earnings are forecast to be $30 billion in 2008-09, a 9 per cent increase from $27.5 billion in 2007-08. Agricultural commodities for which export earnings are forecast to rise in 2008-09 include wheat, barley, canola, pulses, sorghum, sugar and wine.

Crop export earnings are forecast to increase by 24 per cent, to $16 billion in 2008-09. In contrast, export earnings from livestock and livestock products are forecast to decline in 2008-09, by 3 per cent to around $14 billion.

Further spring rainfall will be critical to secure forecast production levels.

If seasonal conditions permit, farmers are expected to reduce slaughterings as they commence rebuilding herd and flock numbers. As a result, exports of livestock and livestock products are forecast to decline.

The value of Australia’s minerals and energy exports is forecast to be around $180 billion in 2008-09, a rise of 53 per cent on the previous year.

“The short-term prospects for energy and mineral commodities remain positive, supported by continued demand growth and supply-side constraints,” Mr Glyde said.

Earnings from iron ore, coal, oil and LNG are forecast to account for almost 98 per cent of the growth in total energy and mineral export earnings.

For energy commodities, export earnings are forecast to increase by 98 per cent to $90 billion in 2008-09. For metals and other minerals, export earnings are also forecast to be around $90 billion, an increase of 25 per cent on the previous year.