Ruralco Holdings managing director John Maher said that low spring rainfall is hurting farmers in Australia's drought-stricken north as the rural services group reported an 86 per cent jump in full-year profit to $10.6 million.
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Mr Maher said the fundamentals underpinning Australian agriculture remain attractive, with growing demand for the nation's grain, meat and breeding stock and increased buyer interest in rural properties.
But rain is desperately need in the north.
"The immediate priority is a genuine northern season to relieve drought-affected regions of Queensland and northern New South Wales given the depleted cattle herd and reduced summer cropping in recent seasons," he said.
Ruralco on Tuesday reported a 21 per cent rise in revenue for the year ended September 30 to $1.4 billion.
The result was buoyed by earnings from newly acquired water services business Total Eden and a stronger performance from agency services, particularly livestock.
Mr Maher said he is pleased with the result given the difficult, dry conditions.
Underscoring the difficulties posed by weather, grains giant GrainCorp last week reported a 64 per cent drop in full-year profit to $50.3 million as dry weather hammered the Australian grain crop.
Ruralco declared a final dividend, full-franked, of 8¢ per share.
