PrimeAg, which owns premium value farmland spread from NSW's Liverpool Plains to Central Queensland, suffered difficult seasonal and market conditions in the past year which Mr Corish said did not a reflect the quality of the company's assets or operations.

He said the lower farming earnings were due to the flooding impact of cyclones Olga and Ului at Emerald; unseasonally hot dry weather in spring and early summer; limited irrigation water availability; and the grain price collapse last summer.

But after last fiscal year's (predicted) losses, the company now tipped a before tax profit of at least $11 million for FY11, with possible upside from further summer crop plantings and above average winter and summer crop yields.

"PrimeAg is well placed to grow in the current fiscal year, with 60,000 megalitres of irrigation water available for the 2010-11 cropping season, and 12,500 hectares of summer crop planned," Mr Corish said.

This compared with 44,000Ml and 10,200ha sown in 2009-10.

PrimeAg, formed in 2007 had a strong balance sheet, with no core debt and $13.8 million in cash reserves on June 30.

"Pleasingly, our portfolio of land and water assets has maintained value despite the adverse seasonal conditions and commodity prices, with a net asset backing per ordinary share of $1.89," he said.

This did not include an increase in water asset values of $0.07/share.

"While trading conditions were very challenging in the past 12 months, PrimeAg stayed focused on executing its strategy to position the company for sustainable long-term growth," Mr Corish said.

Operational initiatives undertaken over FY10 included productivity gains achieved through higher crop yields and lower production costs; completion of a number of capital projects, and commodity price outperformance, relative to the market, through a disciplined marketing and risk management strategy.

Further management refining was underway to integrate large scale farming and development projects.

PrimeAg was confident of improved operating returns and continued growth in its land and water asset values.