A dry start to autumn in much of the country – coupled with challenges hanging over the dairy industry – have taken their toll on the nation’s rural confidence levels.
After starting the year on a strong note, the latest quarterly Rabobank Rural Confidence Survey has shown a decline in farmer sentiment.
Dairy, cotton and grain producers drove much of the downturn in confidence, while farmers across many parts of the nation expressed concerns around seasonal conditions – though recent rains in the south-east of the country have provided some good relief.
In terms of longer-term prospects though, Australian farmers expressed more optimism, with one in five looking to expand their business through property purchase over the next five years.
The survey, completed last month, found fewer farmers were optimistic about the coming 12 months this quarter – with 28 per cent reporting they expected the agricultural economy to improve (down from the 34 per cent with that view in the previous survey). The proportion expecting conditions to worsen had increased to 19 per cent (from 11 per cent previously).
This still saw net confidence remain in positive territory however, with more farmers having a positive, than negative, outlook.
Rabobank national manager Country Banking Australia Todd Charteris said the dry and unseasonably warm conditions throughout much of summer and autumn was behind the more subdued outlook, however recent widespread falls in Victoria, New South Wales, Tasmania and South Australia had alleviated a lot of the seasonal concerns in south-eastern Australia, while WA had received “great starting rains” for the cropping season.
“After very little rain to speak of since January, farmers were grappling with dry conditions until the rains fell in early May,” he said. “This has spurred winter crop plantings across the south-east of the country, with farmers now able to fulfil their planting intentions.
“While the south-east of the country has received the much-needed break in the season, some parts of South Australia have still been awaiting rains to get their crops in, and rainfall has been very patchy in Queensland – although there have been some good falls in the north-west, the Maranoa (or Western Downs) and parts of Central Queensland,” he said. “In contrast, the season has got off to an excellent start in Western Australia, with many grain producers reporting their best start to the season in over a decade.”
