Australia's NSW drought area falls; wheat crop outlook ideal

The area in drought in New South Wales (NSW), which typically accounts for 30% of Australia wheat production, has contracted to its lowest level in four years following widespread rain this year, the state's Primary Industries Minister Steve Whan said.

In January, more than 81% of the state was drought-declared, but that figure has now halved, Whan said.

He said the rainfall helped increase yield potential for summer crops and set the state up in an ideal position for a good winter crop season, which is long overdue.

So far this year, all of the state has received at least 100 millimetres of rainfall, while large areas in the northeast third, along the east coast and the western slopes of the Great Dividing Range, has received at least 200 millimetres, according to figures supplied by the Bureau of Meteorology.

Already winter crops, such as oats, have been planted in northern and central areas of NSW, with plantings expected in 2010-11 crop year in a range of 5.0-5.3 million hectares, the minister said. Winter crops generally are planted in the state April through June.

The state's peak production of winter crops in recent years was in 2005-06 when 11.9 million tonnes was grown, most of it wheat, compared with output of 7.5 million tonnes of winter crops this crop year ending March 31, according to official figures.

But while the latest drought figures are the best for some years, parts of the state's South East and Riverina districts are still low on water, have poor pastures and need more rain, Whan said.

The level of water in state dams rose only a little in February and stands now at 28.2% capacity, he said.