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NSW sees lowest drought levels for 4 years

Wednesday March 17, 2010 - 07:44 EDT

The area of New South Wales officially in drought has dropped to 39.8 per cent, the lowest level in four years.

The figure is down significantly from January when 81 per cent of the state was in drought.

The Primary Industries Minister Steve Whan says farmers are finally starting to see real benefits from recent rain.

"We've had some fabulous rain across large areas of the state since just before Christmas and that has been reflected in these drought figures," he said.

"It does take a couple of months for that to come through."

Mr Whan says while it is good news for farmers, the price of some produce may temporarily increase.

"It's mixed news for consumers in the short term because it is likely that, as people re-stock, you will see a bit of an increase in the price of things like beef because there will be less stock going to abattoirs," he said.

"But it is very good news for crops like rice where we will actually likely to see a reasonable harvest in the next year or so and obviously people will be able to plant winter crops as well."

The opposition's Duncan Gay says farmers will still face financial hardship for some time.

"The problems for many people remain for at least a couple of seasons to allow them to get out of it," he said.

The areas which have moved out of drought include Cobar, Dubbo, Goulburn and Wilcannia.

Areas that have moved from marginal to satisfactory include Armidale, Coonabarabran, Coonamble, Mudgee, Narrabri, Nyngan, Tamworth and Walgett.

- ABC

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