The funding shortfall follows years drought and failed crops, which is limiting farmers' ability to finance the expense of planting this season.

The Grain Growers Association conducted the survey of its members in October 2007 and found 68pc believe their financial situation is worse than five years ago.

But GGA chairman, Dan Mangelsdorf, says it is surprising just how committed eastern Australia's grain growers have remained in the face of extreme financial hardship.

"Our members are rolling up their sleeves to make the best of what the coming season brings with hopes of a profitable crop so as to start rebuilding after the last five years of drought," he said.

"This can occur provided banks and governments continue to take an equally long-term view in relation to the grains industry's profitability."

The GGA says wheat growers will be investing around $300 per hectare in input costs to establish the 2008/09 winter crop.

The average area of wheat planted in Australia over the past three years was 12 million hectares.

If seasonal conditions allow, farmers will be investing $3.6 billion into their wheat crops alone.

"This investment is so significant that one in three farmers surveyed believe they will need to downgrade their level of input this coming year in order to plant a crop," Mr Mangelsdorf said.