ABARE has issued a special update to its quarterly Australian Crop Report with this drought update, released today by Mr Phillip Glyde, Executive Director of ABARE.

Output of the three main winter grains – wheat, barley and canola – is now forecast at 12.1 million tonnes, 5 million tonnes and 900 000 tonnes respectively.

"Although a combined total of 18 million tonnes for the three major crops is around 42 per cent below the five year average, it is still around 4 million tonnes above 2006-07 production," Mr Glyde stated.

With the exception of Queensland, pockets of northern New South Wales and southern Western Australia, rainfall during the critical September – October period has been below to very much below average throughout the grains belt. New South Wales has been particularly dry, with many regions recording their lowest September – October rainfall on record.

"This lack of rainfall, combined with hotter than average daytime temperatures and strong winds has led to the rapid deterioration of crop yield potential and in many areas has resulted in total crop failure," Mr Glyde said.

A significant number of winter cereal crops have also been cut for hay in an attempt to recoup some planting costs.

Mr Glyde noted that livestock have also been affected by the deterioration in seasonal conditions, with farmers continuing to reduce stock numbers.