All our wheat is anchored off the Iraqi coast with the Yanks trying to gazump us.
Farmers in Western Australia may sue the Federal Government for millions of dollars in compensation for lost wheat trade with Iraq.
Wheat exports to Iraq have been suspended because of the war.
The Western Australian Farmers Federation says farmers in WA and South Australia will be hit especially hard because of their high proportion of wheat exports.
President Colin Nichol says the grain marketer Australian Wheat Board will be forced to find alternative markets to continue exporting wheat, and may only be able to do that by cutting prices.
"The trade to Iraq totally is worth $800 million," he said.
"If we were to lose that completely, if we were to sell it for, the grain, say for two-thirds of the price, or three quarters of the price, there's a loss of $200 million to Australia."
