“Export earnings from the farm sector are forecast to be around $30 billion in 2008-09, a rise of 12 per cent on 2007-08,” Ms Schneider said.

Although prospects are encouraging, Ms Schneider cautioned that “seasonal conditions will be a critical factor in achieving those estimates.”

Agricultural commodities for which export earnings are forecast to increase in 2008-09 include wheat, barley, canola, pulses, grain sorghum, cotton lint and seed, sugar and wine.

With winter crop production in Australia forecast to increase by 65 per cent in 2008-09 to 37 million tonnes, export earnings from these crops are forecast to increase by 66 per cent.

However, Ms Schneider noted that: “While the forecast recovery in farm sector performance is very encouraging, the strength of Australia’s minerals and energy exports continues to underpin commodity sector performance”.

The value of Australia’s minerals and energy exports is forecast to be around $178 billion in 2008-09, compared with an estimated $120 billion in 2007-08.

“The price outlook across minerals and energy commodities remains positive, reflecting continued strong demand and only modest world supply growth,” Ms Schneider said.