To understand my answer to that, you also need to have some knowledge of what my particular version of reality is. This area is semi-desert, sandy and rocky soils with an annual average rainfall of 280 mm, or about 11 inches. The dryland farmers predominantly grow cereals ..being wheat , barley and triticale, as well as a few playing with canola. I include myself in that few, but like nearly everybody else, without a high rate of success. A break -even crop of canola equates to wild success, and the benefits are in its rotational uses. There ARE some other crops grown close to me by those with access to irrigation water from the Murray river, but that is an over exploited resource with no more new licenses allowed, and the costs of pumping any distance get pretty serious. Those crops are mostly potatoes and onions and grapes. I know for a fact that the irrigation boys have been hurting pretty seriously in the last few years as well. So the options available to dryland farmers are extremely limited, and for that reason i see little change in the areas planted to cereals. Most farmers here run some sheep as well, but wool, which at one stage in the past was the economic backbone, is severely depressed and my personal opinion is it is unlikely to ever return to anything approaching its former significance. However, just as you have observed, the economics of grain farming also are not exactly filled with joy. I don't know where you are, or from what perspective you see things, but it may or may not surprise you to learn that our grain prices are set pretty much in Chicago. Australia is in the rather unique position that in terms of total world grain PRODUCTION we are close to insignificant, but because we export some 70-80% of what we do grow, then in terms of world grain TRADE, we are quite a major player. And this of course without the benefit of govt. subsidies. We are a large country but a small nation, and very much at the mercy of world markets, which has not been a comfortable place to be in recent times. Thanks for your interest, and i hope I've answered your questions. Ham