ABARE says the value of farm exports is forecast to fall by 2.5 per cent to $31.1 billion in 2009-10, following a significant rise of 16 per cent to $31.9 billion in 2008-09.

The September issue of Australian commodities was released today by ABARE deputy executive director, Dr Terry Sheales, who said that although winter crop production was forecast to increase in 2009-10, "an assumed higher average value of the Australian dollar is expected to lead to lower farm export earnings in the short term".

The latest forecast of farm export earnings in 2009-10 is a downward revision from the $32.5 billion released by ABARE in the June issue of Australian commodities.

However, at a forecast $31.1 billion, farm export earnings in 2009-10 will still be around 13pc higher than the $27.5 billion recorded in 2007-08.

Agricultural commodities for which export earnings are forecast to rise in 2009-10 include barley, chickpeas, lupins, oats, peas, rice, sorghum, raw cotton and sugar.

However, the effects are more than offset by forecast lower export earnings for wheat, canola, wine, livestock and livestock products.

Total earnings from Australia’s commodity exports are forecast to fall by 20pc to $158 billion in 2009-10, following an estimated rise of 32pc to $197 billion in 2008-09.