Farmers’ confidence has fallen following drought and flood across Victoria and NSW.
Photo by
Megan Fisher
Sentiment in Australia’s agricultural sector softened over the winter months, as the nation’s farmers contend with higher input costs and mixed seasonal conditions, the latest Rabobank Rural Confidence Survey has found.
Farmers reported feeling most positive about seasonal conditions and commodity prices, although producers in Victoria and South Australia in particular remained concerned about weather.
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Input costs were the main reason for concern in Tasmania, Queensland and NSW, however seasonal factors outstripped costs in Victoria and South Australia, and farmers in Western Australia were most worried about government intervention and policies.
There was a marginal lift in farm sector confidence in Victoria (to reach a net measure of seven per cent, up from five per cent), supported by early-season rainfall that helped replenish soil moisture in some areas, along with high lamb and beef prices.
Despite rallying at the beginning of the year, NSW farmer confidence recorded a downturn, with the net index falling to -8 per cent from -1 per cent in the previous quarter.
NSW now has the lowest level of farmer confidence in the country.
Rabobank country banking Australia group executive Marcel van Doremaele said it was encouraging to see that a large proportion of farmers still expected conditions to remain stable or improve over the next 12 months.
“This highlights the resilience of Australian farm businesses — they are navigating rising input costs and ongoing seasonal variability, but are capitalising on the positive drivers of solid commodity prices, primarily in livestock sectors, and favourable seasonal conditions in key regions,” he said.
