An examination of the decline in net farm income between 1966-67 and 1969-70 indicates that in the three major zones the following size groups will be non-viable (l) In the High Rainfall Zone, farms with less than 2,000 and more than 10,000 sheep, comprising 85 per cent of farms in the Zone. (2) In the Wheat Sheep Zone, farms with less than 1,000 sheep, comprising 56 per cent of farms. (3) In the Pastoral Zone, farms with less than 20,000 sheep, comprising 98 per cent of farms. This situation could be alleviated to some extent by extending the period of debt repayment from the present average period of 7 years to a period of 20 to 30 years.