A Drought Recovery Alliance has been formed to deliver options to the Federal Government for a replanting assistance scheme in New South Wales, Victoria and Queensland in recognition of the unprecedented drought.

New South Wales Farmers Association President Jock Laurie hosted the Alliance when it met for the first time this week in Sydney, bringing together Victorian Farmers Federation, AgForce, Grain Growers Association, NSW Farmers Association and the National Farmers Federation.

Drought Recovery Alliance Spokesperson Alan Brown says a solution must be found to help farmers devastated by the ongoing drought to replant their crops.

The fact that all groups have come together on this issue is recognition of the magnitude of the drought, Mr Brown said.

We want to assure farmers in all three states that we are working together towards finding a solution to help them put in next year s crop.

This drought is the worst on record and the cropping sector is now heading into territory it hasn t seen before, Mr Brown said.

Agriculture is vital to the national economy and we must make sure everything is done to ensure the survival of the industry, Mr Brown said.

Many can t afford to put in next year s crop because of previous crop failures and the future for the industry is far too bright to ignore this immediate problem, Mr Brown said.

The outlook for the Grains Industry is positive with buoyant world prices, low world stock and an increase in demand.

Entire rural communities are affected by crop failures and through providing assistance at the farm gate level, these communities will be better placed in the long run, Alan Brown said.

The Drought Recovery Alliance will deliver a report to the Federal Government in early 2007.

The group will be approaching other states affected by this issue to join the Alliance.

The Alliance has also recognised the problem many farmers are now faced with the deterioration of their core breeding stock and the need for a way forward.