Rural exports are expected to fall two per cent this financial year as farmers rebuild livestock numbers during the weakening drought.
The Morrison government's budget update released on Thursday gives an insight into the outlook for agriculture in 2020/21.
Increased rainfall is forecast to generate an above-average winter crop this financial year, but rural exports are still expected to fall.
That's because producers are gradually rebuilding livestock herds and flocks, which fell to historically low levels at the height of the crippling drought.
The two per cent drop in exports follows a 6.5 per cent fall in 2019/20 when the dry spell continued to weigh on crop and livestock production.
Rain in the first half of 2020 has eased conditions across large parts of regional Australia hammered in recent years.
However, many farmers are still grappling with financial pain after several tough years.