The flooding that ravaged crops in New South Wales resulted to estimated harvest losses of up to $850 million, according to the projections issued by the NSW government on Thursday.

NSW Primary Industries Steve Whan said that as a direct result of heavy rains and flood damages on state crops, about 50 percent of 2.8 million hectare wheat harvests have been pushed down into mere feed quality, practically taking away millions of revenues from state farmers.

Many areas in the state, according to Whan, have suspended harvesting activities as paddocks are still too wet but he added that despite the grave situation, NSW's feed grain prices are showing signs of stability.

Whan said that such bit of a good news served as the saving grace for much of state's crop yields.

NSW has been producing an annual average of 3.13 tonnes of wheat per hectare for a state-wide output of 8.8 million tonnes as compared to the 2009 production level of 4.43 million tonnes that covered 2.77 million hectares.

Still, the state government said that considerable amount of barley and oats have been downgraded to feed status due to the floods, which also affected pulse crops across the state in December.

Amidst the wet weather conditions, the NSW government said that some 600,000 hectares of summer crops have been collected as against to the 240,000 hectares harvested from the previous season. The yield, the state noted, still excludes rice yields.

Yet NSW farmers have been hit too by higher production costs, according to the state government, as the unusually wet and humid summer conditions spawned an increase in insects feeding on the summer crops.