DRY seasonal conditions have caused an 18 per cent drop in Wimmera farmers' annual income, a new report has found.
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New figures from the Australian Bureau of Agricultural and Resource Economics and Sciences showed broadacre farmer's average cash income would decrease to $173,000 for this financial year.
Last year's average cash income was $201,300.
The report stated that across Australia, the crop production had declined by 11 per cent.
Rupanyup farmer and Grain Producers Australia chairman Andrew Weidemann said while some farmers were lucky with crop production last year, not everybody had a good season.
"Overall, people would have gone backwards because of the season," he said.
"How far back depends on how much rain they received in spring."
Mr Weidemann said farmers would now weigh up options ahead of this season, with many growers in the region looking to start cropping this month.
"There is the expectation that the year will be on the dry side again," he said.
Mr Weidemann said many farmers in the region would choose to only grow barley and wheat this year, because it was a safer option.
"Pulses and canola will definitely decline based on the discussions I've had with people.
"We will need well above average rain this year to produce an average crop - everything is so dry."
The report also found that the sheep industry is benefiting from high prices for meat and wool.
Average farm cash income for sheep farmers is projected to increase from $131,600 per farm in 2017-18 to $142,000 per farm in 2018-19.
"The sheep industry is in a pretty good situation, the only downside is there is a lot of hand feeding going on now because of the dry year and the cost of that is taking the edge off," Mr Weidemann said.
"Sheep are a lower risk option - more farmers are starting to diversify and are runmomg sheep."
Wimmera Development Association executive director Mark Fletcher said fluctuations in farm income had a direct effect on the region's economy. "All sectors are affected when it's not a good year for farmers," he said.
"We are starting to see the impact of last season across the region and as we move further into the year we will see what effect that has on businesses," Mr Fletcher said.
"Up until Christmas, retail trade was fairly steady, but things have slowed down."
Mr Weidemann said the region was highly dependent on agriculture.
"It's important to support local businesses as much as we can and keep every dollar in the region," he said.
Mr Fletcher said he hoped growers had a better outcome next season.
The Bureau of Meteorology's climate outlook for March to May 2019 indicates an equal chance of above average or below average rainfall across Australia's cropping regions.
Mr Fletcher encouraged growers to seek help managing their cash flow if they were struggling.
"For farmers, there is a lot of information out there about drought assistance packages and rural financial counselling," he said.
"I would urge people to be aware of what is available to them."