AUSTRALIA'S rice growers are gearing up for bumper yields at a time of record prices.

Ideal growing conditions over summer have growers tipping 10 tonne/ha yields on a guaranteed base minimum price of $550/tonne.

Improved water allocations mean grower numbers have tripled from last year when the national crop of 18,000 tonnes was the lowest since 1928.

Rice has been planted across 7700ha using surface and bore water, with the 70,000-tonne harvest expected to begin within weeks.

In the Murray Valley, where general-security irrigation allocations are at 9 per cent, less than a dozen growers have planted rice using surface and bore water.

Jerilderie, NSW grower Ian Mason said the majority of rice growers were struggling after two years of zero allocations.

"Most are selling their temporary water to pay (fixed water charges)," he said.

"If my rice doesn't reach yield potential, I will cut it for hay."

NSW Department of Primary Industries' John Lacy said most crops had escaped damage from cold nights following the summer heatwave.

Irrigators without rice in the ground this year are selling temporary water to generate cash flow or saving their small allocations for pre-watering winter cereals.

In line with the downsized crop, rice research and development has fallen dramatically.

Yanco Agricultural Institute rice breeder Dr Russell Reinke said breeding field trials had been reduced from 18ha to 8ha this year.

He said research had begun into cold tolerance in early and late-sown varieties and genetic markers in temperate rice.

Meanwhile, Sunrice remained tight-lipped on crop prices for next year in the face of the global financial crisis and falling fertiliser prices.

Sunrice director Gillian Kirkup said the industry remained confident with prices at a premium of $1100 a tonne for finished product.

"Rice prices are holding as good as ever and holding better than other grain markets," Mrs Kirkup said.

"(The board) debated long and hard to come out with a (2010 crop) price . . . but we are completely open to world trade, fertiliser prices going down and the global financial crisis."

Leeton, NSW grower Randall Williams is expecting an average yield of 10 tonnes/ha from his 17ha of the medium-grain variety, reiziq.

"I didn't grow rice last year but this year I saved my carryover water and had a better allocation," he said.

"With prices in the high $400s and $500s, rice is still a competitive crop to grow.

"Nearly everyone (in the district) with water available has got a small acreage of rice in to keep the industry ticking over."