Victorian barley farmers have welcomed the breakthrough in Chinese tariffs on the cereal but one said he hoped current markets would be maintained.
The Australian government has paused its World Trade Organisation dispute levelled against China for imposing the tariffs.
Beijing will review the tariffs in the next three to four months, after which the WTO case will resume if no agreement is reached.
"We believe there's no justification for the measures that China introduced in relation to barley," Foreign Minister Penny Wong said.
"We have also made clear that we believe it is in both countries' interests for these trade impediments to be removed."
A resolution could pave the way for the removal of trade barriers imposed against other Australian products.
Last month, ABARES predicted Victorian producers had 820,00 hectares under barley, in 2022-23.
The Mallee and Wimmera accounted for more than 60 per cent of area planted to wheat and barley across the state.
Yields in those regions were forecast to be the highest on record due to the favourable start to the season and timely rainfall throughout most of the growing period.
Barley grower John Watson, Berriwillock, welcomed the news.
"Last year, our best crop was barley - in the Mallee it is still a staple requirement," Mr Watson said.
"It would be a good move, with a bit of common sense coming into the place.
"I don't know what our trade-offs will be to allow it to happen - the main thing is there are not to many downsides for the rest of the country, you have to look at it from a national point of view."
He said the barley market had found other outlets - "if it happens its a bonus."
Mr Watson said he expected to put in about 1200 hectares of barley, or a third of his crops.
"We've probably had 20 millimetres of rain, in the last 10 days, which is a very nice start," he said.
"The barley grass is all coming through, we didn't think we would have a kill of weeds before we sow.
"We're getting the shearing out of the way, before we start to sow."
Last year's barley quality was very good "the crops didn't look good, but by gee, it yielded."
Mr Watson said barley was currently selling for around $300 a tonne.
The re-opening of the China market would result in more competition and could see prices increase.
Daniel Keam, Wallup, said there was still some time before the tariffs actually came off.
"I think it's been a positive outlook since the change of government, the new government have knocked down a few barriers, haven't they?
"We have opened dialogue with China, and not just for barley - the wine and lobster industries are looking at this as well so this could be a huge bonus for Australia's economy."
He said it would be interesting to see how the grains industry reacted.
In the meantime, grain groups had done "wonderful work" to open up new markets.
"I would hate to see us abandon those markets, all because China is back online," he said.
"There is going to be more competition and the Chinese do buy a substantial amount of barley, so the optimistic view would be that it will push prices up."
He said he wouldn't be changing his rotation, on the basis of the announcements.
"It will be interesting to see how it affects grain growers in their planning for the upcoming season as to just how much barley they are going to grow," he said.
Kyle Pearse, who has properties at Donald and Quambatook, said he didn't allow speculation on changing markets to influence agronomic decisions in the buiness.
"Markets come and go, commodity pricing moves, seasons are sometimes good and sometimes bad,: Mr Pearse said.
"Chasing markets never works long term.
"We'll just stick to our program, and hopefully we have enough diversity to ride out any bumps in the road."
Victorian Farmers Federation Grains Council president Craig Henderson said it was likely when the Chinese needed barley, they would come back to Australia to source supply.
"If they don't buy it off us they buy it from someone else, around the world," Mr Henderson said.
"There will always be a price lag.
"When they shut it down, that's a straight cliff edge - it affects you straight away.
"But if you are in a position where you can store it and wait until it levels out, it all starts to come good."
He said the basic fundamentals of business - supply and demand - would determine the price.
Barley would make up about one-third of this season's crops, which also included wheat, lentils, field peas and oats.
Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
