Prices at the Midland sale yards are holding well. Many farmers appear to be holding off machinery repayements, downgrading their 'credit rating' and reducing the cash flow of lending institutions. Large amount of lupin, oat and feed-grade wheat and barley likely to be retained on farm, distorting crop yield figures. Fertiliser use next year is likely to be well down. More selective cropping is likely next year, with a large drop in total area.
Major crops are likely to be cereals with reduced amounts of higher risk canola and lupin crops.
Widespread concern over land values and flow on effects to equities and borrowing capacity of farmers.