Water shortages were looming as a critical issue for many regional graziers, he said.

“When you compare this year, to last year, we are just possibly a tick in front of last year, for paddock feed,” Mr McKenzie said.

“With water, we are 12 months down the track without any run off – it’s going to be  quite a challenge.”

He said the cereal crops, grown for sheep feed, had been cut for hay and the property had a carryover of grain from last year.

“That should be enough to get us through and we had a little bit of left over hay.”

Montrose Hill had been pumping water since the first week in July but had recently stopped, because the supply had dwindled to the point where no more could taken.

“We have two springs on the property, still ticking over quite well, but water wise the house dam is a bit of a challenge,” Mr McKenzie said.

Meat and wool prices would help some graziers, through the dry times.

“This year, the stock are still selling reasonably well and if you have to offload an extra mob of ewes, or wethers, you can buy some grain that way,” he said.

“I would like to see a big rise in the wool market, but they are not give away prices - we are still making reasonably good money out of wool.”

Mr McKenzie said he had no plans to destock Montrose Hill.

Graziers and croppers had to structure their businesses around the season “that is sent to challenge you.

“If it challenges you, that’s fine, but you have to roll with the punches,” he said.

“We will not be selling sheep off, unless we have to - it’s a long time between October and April next year and it can rain in that time.

“In 1988 I saw this same scenario. We bought grain from the southern Mallee, and it was three years before we fed it out because it started to rain about November 20 and it rained until the end of March.

“It’s not over, until it’s over, so you have to structure your business for profit.”