AUSTRALIAN farmers are riding a wave of confidence on the back of strong commodity prices and one of the wettest autumns in decades.

Widespread rain has prompted NAB to forecast a 9 per cent lift in farm production to $5.1 billion this year.

And the latest Rabobank survey has found Victorian farmers to be the nation's most optimistic, with the state's confidence levels rising for the fourth successive quarter.

NAB agribusiness economist Frank Drum said good rain and stable commodity prices would see farm incomes rising for the first time in several years.

"Incomes went down as drought spread across the country and haven't recovered due to below-average winter crop production, high input costs and poor returns," Mr Drum said.

"However, we finally have a turnaround."

In its latest rural commodities wrap, NAB has forecast young cattle prices to rise 7 per cent to 345c/kg, wheat production to rise 5 per cent and canola plantings to rise 8 per cent.

The confidence has also flowed through to the property market, with leading real estate agents tipping a bumper autumn property market this year.

"We'll see a lot of property presented this autumn for sale because it's in a very good condition to be presented with the wonderful early break," Elders Real Estate national manager Shane McIntyre said.

The outlook also remains bullish for sheepmeat producers, with no end in sight for global demand for Australian lamb.

"Prices are better than they have ever been," Sheepmeat Council of Australia president Kate Joseph said.

"The market has been red hot because demand has exceeded supply so dramatically."

However, Victorian Farmers Federation Grains Group president Russell Amery was less certain that grain production would rise this year.

"Grain prices have fallen substantially in the last few months and together with the fact that input costs have risen, I don't know if there will be a huge increase over last year," Mr Amery said.

VFF President Andrew Broad said a wet March had been a great start to the season but "farmers are always optimistic at this time of year".

"Does that translate into money in the pocket at the end of the year? I'll tell you later."

While the dairy industry is still recovering from the impact of the global financial crisis, United Dairyfarmers of Victoria president Chris Griffin said there was cause for "cautious optimism".

National Council of Wool Selling Brokers executive director Chris Wilcox said the outlook for wool was "looking pretty good".