Speaking in Gunnedah, NSW, Rabobank International board member Sander Pruijs said that while the current world financial situation was unprecedented, Australia was comparatively well-placed to manage market conditions.

"The current state of financial markets is not having a very significant effect on farmers around the north west of New South Wales at the moment," he said.

And he said the world's growing population and need for food meany there was a good outlook for the agricultural sector.

However, Rabobank general manager for food and agribusiness research and advisory, Bill Cordingley, said there would be volatility in the market place, as evidenced by the recent "correction" in wheat prices.

"Essentially the fundamentals remain strong for the next few years due to low global grain stocks, rising protein and calorie consumption in developing countries and the developing biofuels market in the US and Europe," he said.

"The global financial crisis is creating uncertainty about future demand strength for grains and meats and the lower oil prices are pressuring biofuel producers.

"We expect some short term volatility and weakness until the broader situation becomes clearer.

"In the future, these productivity gains will be necessary to mitigate the costs of emissions trading where the response is looking expensive."