In a note of caution, ABARE Executive Director Phillip Glyde indicated that continued dry conditions throughout Queensland and parts of Western Australia meant that winter crop prospects in those states are below average at this stage.

The total area sown to winter crops in Australia is forecast to increase by around 10 per cent to just over 20 million hectares in 2007-08. Assuming average yields, winter crop production is forecast to reach around 37 million tonnes in 2007-08, a 21 million tonne increase compared with the drought affected 2006-07 season.

"The area planted to wheat is forecast to rise by 11 per cent to 12.4 million hectares. Assuming a return to average yields, total wheat production is forecast to reach around 22.5 million tonnes in 2007-08, more than double what was produced last season," Mr Glyde noted.

Barley and canola areas are also forecast to increase, by 10 per cent and 7 per cent respectively.

Barley production is forecast to increase to around 9 million tonnes, and canola production is forecast to be around 1.4 million tonnes, almost triple the amount of canola produced in the previous season.

The OUTLOOK for winter crops after last year"s drought is in marked contrast to the outcomes from recently harvested summer crops. With drought conditions continuing through summer, total summer crop production is estimated to have declined by 57 per cent to around 1.89 million tonnes.

Of the major summer crops, grain sorghum production is estimated to have declined by around 52 per cent to 952 000 tonnes, and cotton production by around 54 per cent, to its lowest level in almost 20 years.

"The rice crop was severely depleted by lack of water. However, favourable growing conditions resulted in above average rice yields," Mr Glyde said.