The forecasts are contained in the June issue of Australian Commodities released today by Karen Schneider, acting executive director of ABARE.

"Export earnings from the farm sector are forecast to be around $30 billion in 2008-09, a rise of 12pc on 2007-08," Ms Schneider said.

Although prospects are encouraging, Ms Schneider cautioned that "seasonal conditions will be a critical factor in achieving those estimates".

Agricultural commodities for which export earnings are forecast to increase in 2008-09 include wheat, barley, canola, pulses, grain sorghum, cotton lint and seed, sugar and wine.

With winter crop production in Australia forecast to increase by 65pc in 2008-09 to 37 million tonnes, export earnings from these crops are forecast to increase by 66pc.

"While the forecast recovery in farm sector performance is very encouraging, the strength of Australia's minerals and energy exports continues to underpin commodity sector performance," she said.

The value of Australia's minerals and energy exports is forecast to be around $178b in 2008-09, compared with an estimated $120b in 2007-08.

Following significant rises in 2007-08, further price increases in 2008-09 are forecast for many minerals and energy commodities, including iron ore, coal, crude oil, gold and aluminium.