A likely drop in incomes for sheep and beef farmers is forecast for the coming year.
Meat & Wool New Zealand's economic service says the exchange rate will be the key factor influencing the size of the fall.
The service expects market prices for lamb and beef to remain solid. Market prices for wool may firm slightly after last year's big fall.
The agency warns that returns at the farm gate will hinge on the exchange rate.
Executive director Rob Davison says forecasting where the New Zealand dollar will go in the next year and its impact on farm incomes, is extremely difficult.