An agricultural economist says there's a light at the end of the tunnel for farmers facing high inflation rates

Beef Lamb New Zealand reports a 40 year high at 16.3 percent -- that's two-and-a-half times consumer price inflation.

The most recent March figures follow a 10.2 percent increase over the previous 12-month period.

Westpac's Nathan Penny says prices are expected to fall over the coming years.

He says fertiliser and fuel prices have started to fall and interest rates are reaching a peak.