Australian State Needs Rain as Drought Spreads, Government Says

By Madelene Pearson

Aug. 18 (Bloomberg) -- Grain crops in New South Wales state, usually Australia's second-largest growing region, need ``good rain'' this month after drought conditions spread, the state's government said.

Drought covered 66.2 percent of the state, up from 65 percent a month earlier, according to the August report from the Primary Industries Minister Ian Macdonald. Only the eastern third of New South Wales got ``reasonable'' rain last month, the minister said.

``While farmers remained optimistic about this year's crop prospects, above average spring rainfall would be needed to see them through to a reasonable yield,'' Macdonald said. ``The good news is that our cropping sector is in a much better position than this time last year, however, we really need good rain before the end of August.''

To contact the reporter on this story: Madelene Pearson in Melbourne on mpearson1@bloomberg.net