President of the Victorian Farmers Federation grains group, Geoff Nalder, says farmers need to be increasingly aware of their risk exposure in the light of the massive collapse of US financial markets earlier this week.

The crash – which saw Wall Street haemorrhage close to 7pc of its total value on Tuesday - is likely to have an impact on the rural sector, both in terms of commodity prices and in terms of the health of the overall business sector.

Grain futures were first to feel the pinch from the fall-out from the worst day of trading since the Great Depression.

Chicago Board of Trade December '08 futures went limit down on Monday, dropping the maximum US50c/bu to US668c/bu, before rebounding slightly to US680c/bu this morning.

Australian producers have been insulated to some degree to the marked drop in world prices by the depreciation of the Aussie dollar.

Mr Nalder said that the financial crisis should have alarm bells ringing for growers in terms of making safe marketing decisions.

"We say it all the time, but the highest price is not always the best price – make sure you deal with a company you trust," he said.

"People need to be very aware of the increased likelihood of companies running into difficulties.

"It's risky enough in grain production without dealing with a company that doesn't have a proven track record.

"In this situation, more so now than ever, I'd be dealing with the tried and true companies that you have dealt with in the past."