Dry winter a stress for NSW crops

The state's winter crop production is predicted to drop by almost 50 per cent after NSW suffered through a dry winter and severe frosts, the federal government's agriculture forecaster warns.

In Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) latest prediction for 2017-18, a lack of rain is being blamed for NSW's forecasted 43 per cent drop to 9.5 million tonnes in wheat, barley and canola production.

There is "severe moisture stress" in parts of the state where conditions were so dire some crops were "sprayed out" or grazed by cattle, the report released Tuesday said.

Farmers' confidence in the agricultural economy across the state has dropped to its lowest level since mid-2013 due to the harvest predictions, said Rural bank manager Peter Anderson.

"With many farmers hoping for an average wheat crop at best, it now all hinges on the next few weeks ... however, if forecasts for lower-than-average rainfall and higher-than-average temperatures play out, production prospects will be diminished further," Mr Anderson said.