Drought to slash farm income

CANBERRA - The drought will slash Australia's agricultural income by more than 70 per cent this year, wiping almost A$7 billion ($8.1 billion) off the sector's pay packet, the Australian Bureau of Statistics (ABS) says.

A bone-dry spring has kept inflows to the parched Murray Darling Basin at record lows.

Farm income is expected to fall to A$2.6 billion in 2006-07, down 72.4 per cent from the A$9.3 billion recorded in the previous year and the lowest level since 1994-95.

Snowy Hydro advised that its system inflows also were at record lows - 67 per cent below the previous minimum.

- AAP