International prices for key inputs such as fertiliser have fallen recently and, although domestic prices are taking time to follow, Rabobank believes there will be some relief for Australian farmers as input prices are set to remain below historical highs during 2009.

The report said that the international market has seen US dollar prices for major inputs such as fertilisers fall by between 60pc and 75pc since their record highs in mid-2008.

However, according to report author and Rabobank analyst Adam Tomlinson, over the same period the Australian dollar has depreciated by more than 30pc, effectively offsetting a large portion of the declining international prices.

The report says it is expected that relatively low global stocks of the major grains and oilseeds will see prices for these commodities remain at higher than historical average levels for the next few seasons, although it is unlikely there will be a return of the 2008 commodity price highs in the near future.

"The strong prices for major grains and oilseeds will result in a large area planted to crops throughout 2009, maintaining reasonable demand for farm inputs and keeping farm input prices at relatively high levels, albeit well below recent record prices," Mr Tomlinson says.

"International prices for fertilisers are expected to remain low for the next few years in view of increased fertiliser production capacity at lower price levels flowing through to the supply chain."

Agrochemical prices are also predicted to drop from record highs in line with wider commodity prices, although demand in 2009 remains unclear due to the uncertainty in the global economy.