Farmers’ confidence levels soar
Farmers are entering 2017 in an upbeat mood with their confidence levels on a high.
The final Rabobank Rural Confidence Survey for the year has found Australian farmer confidence has been sitting at historically high levels throughout the past quarter.
Cotton and sugar producers are particularly bullish about the coming year, and sentiment remains strong in the sheep and beef sectors.
And there has been a big turnaround for dairy farmers with global commodity markets continuing to recover.
The survey found that a larger proportion of farmers expect agricultural economic conditions to improve (36 per cent) rather than worsen (15 per cent) over the coming 12 months.
It showed that 40 per cent of beef and 35 per cent of sheep producers expect conditions to be better next year.
Rabobank national manager Country Banking Australia Todd Charteris says the confidence has been underpinned by good seasonal conditions and positive market fundamentals for beef, sheep, cotton and sugar and, increasingly, dairy.
“Much of the country is experiencing a good season, following the second wettest winter on record, and a wet start to spring,” Mr Charteris said.
He said the rains had been particularly good for grain growers and had given the cotton industry a considerable boost, with 62 per cent of cotton producers expecting conditions to improve over the coming 12 months.
“The rain has not only spurred a large dryland plant this year, it has also shored up water availability for irrigators, which has facilitated the largest planting in five years – nearly double that of last year,” he said. “The market is also looking favourable, with domestic prices now trading up around $500 a bale.”
by Leon Gettler, November 29th 2016
