But complex issues point to a positive future for Australian farmers if input costs can be contained.

That's the opinion of Rabobank Rural WA manager Crawford Taylor who, as keynote speaker at WA's Farm Machinery Dealers Association (FMDA) annual general meeting, presented a paper cryptically titled The Soft Commodity Boom.

According to Mr Taylor, while commodity prices have exploded since 1998 and risen 135pc globally since January 2006, the price surge has been driven by a complex set of factors which include population growth, biofuels demand and a slowing global economy.

"But it doesn't look as bad as you might think," he said.

"The (focus is on) United States slowing but India and China are growing and world economic growth is predicted to track above the average."

The problem arising from this growth, however, is the ability to develop sufficient arable land to grow the grain needed.

"There is significant growth in meat consumption, for example, which impacts on feed grain, mainly wheat and corn," Mr Taylor said.

"But with emphasis on corn production for the biofuels industry, there won't be enough corn to grow beef.

"Biofuel production is expected to increase placing further demand pressure on agricultural commodities at a time when stocks-use-ratio is at its lowest level ever.

"And there's a reduction in arable land as the world population increases."