THE falling Australian dollar is lifting the spirits of Victorian wheat farmers, who are now looking at their best season in years. Expected prices have been revised.
Hopes for a bumper season were boosted by wheat production falls in Europe and the US, raising demand for Australian product.
Drought-weary Horsham farmer Geoff Rethus said while the prospect of a good season was heartening, crop growers weren't counting their chickens yet.
"I'm cautiously optimistic . . . it's the next two to three months that are really going to tell," Mr Rethus said.
Wimmera and Mallee farmers had good rains during sowing time in April and May, but there hadn't been much more than a few sprinklings of rain since, Mr Rethus said.
However if rain falls in the next six weeks, farmers are looking at an above-average season and even record prices.
This month, the drop in the Australian dollar meant the Australian Wheat Board revised expected wheat prices.
Mr Rethus said the move took wheat from $250 to $258 a tonne at port, and he said prices could still go higher.
"Considering last year prices were down at $150 or $160, we're already pretty happy with this year's prospects," he said.
Mr Rethus said that the best wheat price he had seen in 37 years of farming was $300 a tonne, almost seven years ago.
"If the Australian dollar stays around US80c and we get a bit lucky with the season, I'd expect the AWB will revise the price up again, and we could be getting near that record figure," he said.
And some luck certainly wouldn't go astray for Victoria's farmers.
"Last year was a pretty tough year for us, and we lost money," Mr Rethus said.
"It would be nice to have a good season to have a bit of a catch-up."
