RICE, sheep and lamb numbers dropped to their lowest level since the 1920s last financial year, according to figures released today by the Australian Bureau of Statistics.

The ABS said a lack of water and other unfavourable conditions had hurt agricultural production in 2007-08.

"Rice plantings dropped to the lowest levels since 1927, from 20,000 hectares in 2006–07 to 3,000 hectares in 2007-08 while production was down 86 per cent to 23,000 tonnes," the ABS said.

"Sheep and lamb numbers - at 79 million head were also at their lowest levels since the 1920s.

"But plantings of grain sorghum came in at a record high of one million hectares, leading to a tripling in production to 4 million tonnes."

The ABS figures show that beef cattle numbers were on par with 2006-07 at 25.3 million head, but dairy cattle numbers dropped 6 per cent to 2.5 million head.

The number of pigs plummeted 16 per cent to 2.2 million.

Wheat production rose 28 per cent during the year to 13.8 million tonnes, Barley production jumped by 69 per cent to 7.2 million tonnes, which was still below the average production of the previous five years.

Oat production skyrocketed 107 per cent with 1.5 million tonnes harvested, while cotton lint production declined 44 per cent to158,000 tonnes, with the area planted to cotton the lowest since 1980-81.

"In 2007-08, 84 per cent of Australian agricultural businesses reported that they had experienced adverse seasonal conditions, such as drought, severe frosts, hail, severe storms, flood, or an increase in seasonal variability during the 2007-08 season," the ABS said.

"Estimates ranged from almost 90 per cent of agricultural businesses in New South Wales and Victoria, to just over half in Western Australia.

"Of those agricultural businesses reporting that they had experienced adverse seasonal conditions, de-stocking was the most commonly reported management response (57 per cent), followed by the purchase or use of on-farm fodder reserves (46 per cent)."

Almost a third of these agribusinesses reported using financial reserves and/or increasing debt in response to adverse seasonal conditions.