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Grain producers cop income hit as dairy farmers thrive

Broadacre farmers in large parts of the country are bracing for a financial blow, just as dairy producers prepare for a cash injection.

Income from broadacre farms is forecast to drop by about seven per cent this financial year, driven by lower commodity prices and high input costs.

Heavy rains and damaging floods have also delivered an additional hit to farmers on the east coast.

Despite the setback, cash incomes will remain well above the 10-year average.

Figures from the Australian Bureau of Agricultural and Resource Economics and Sciences figures (ABARES) show broadacre and dairy farmers received record incomes over the last two years.

And the good times are set to continue for dairy producers.

The bureau's Peter Gooday said incomes for dairy farms were projected to increase by about 20 per cent this year, mainly because of higher farmgate milk prices.

"This represents record average farm income for dairy producers despite the rising input costs," he said.