Australian Bureau of Agricultural and Resource Economics and Sciences quarterly commodities said in a report on Wednesday that the nation's farming sector is set to provide a cash haul in this financial year.

Floods in the eastern states and drought in the west are estimated to have cost 2.34 billion U.S. dollars in lost production and exports, and cyclone Yasi wiped out an estimated 229 million U.S. dollars of fruit and vegetables.

However, despite the destruction from floods and cyclone, the nation's farming sector has received some positive news.

Australian Bureau of Agricultural and Resource Economics and Sciences quarterly commodities report predicted global demand for commodities will boost Australia's agricultural, mineral and energy exports by 14 percent to more than 255 billion U.S. dollars in the 2011 financial year.

The report showed farm incomes are projected to rise in most New South Wales regions this year because more grain is being grown; sheep, lamb, wool and beef prices are up and cotton growers are forecast to get an average 140.5 U.S. dollars a bale more than they did last year.

"It's the biggest year we've had," Wallaby farmer Tim Gavin, whose record cotton crop covering 1,600 hectares of the property he manages at Gunnedah of New South Wales is now about 1.2 meter high and loaded with fruit, promising a marvelous May harvest, told The Australian newspaper on Wednesday.

"What I can't believe is with the high Australian dollar things are holding up as well as they can, so it is exciting if this can continue."

Meanwhile, the nation is predicted to produce a record of more than one million tons of cotton in 2011 financial year watered by brimming irrigation dams.

Sheep graziers nationwide are set to score their highest average incomes in 20 years.

The report also showed broader farmers who grow grains and livestock can expect an average 40 percent more income than last year, as exports of agricultural commodities are expected to rise by nine percent, to 31.6 billion U.S. dollars.

"Clearly rain is better than dust for farmers because despite what's happened from late November onwards in terms of the heavy rainfall and the cyclone, the outcome has been positive overall for farmers," the bureau's deputy executive director, Paul Morris said in the report.

He said even consumers were doing well compared with the rest of the world as the strong Australian dollar buffered them against globally soaring food prices.

Robert Armstrong, who runs sheep and cattle and grows crops 65 km north of Orange of New South Wales, told The Australian newspaper that he hoped a return to bounteous days would inspire younger people to enter the farming industry.

People's Daily