More rain, better growing conditions and improved livestock and commodity prices are behind a bump in the Rabobank Rural Confidence Survey, released on Tuesday, October 28.
The headline figure was farm sector confidence is at positive 14 per cent, up from the neutral zero score in the last quarter.
It is just the third time the score has been positive — with those optimistic outweighing those who are not — in the past three years.
Sheep farmers were at the top, with net confidence at 31 per cent, which Rabobank spokesman Marcel van Doremaele attributed to strong prices for their meat, as well as improving fine wool prices.
Beef farmers were just behind, at a net 27 per cent.
“Australia’s beef and sheep producers have been buoyed by relatively consistent and robust prices driven by strong international demand,” Mr van Doremaele said.
“Rain early in the year across key beef-producing regions in Queensland and northern NSW provided good pasture for beef producers in those areas.
“And with the potential of the herd rebuild in the United States reducing its beef supply — along with lower beef import volumes coming in from Brazil — US imported lean trim prices may continue to remain high, supporting Australian prices and sustaining producer confidence.”
The survey also ranks optimism by state, with Tasmanian farmers the brightest at a net 34 per cent, ahead of Victoria (net 21 per cent), and the most-improved: NSW, which jumped to 15 per cent from negative 10 per cent three months ago.
Queensland beef producers have driven a lift to 10 per cent in the Sunshine State, while South Australian farmers sit at eight per cent.
Western Australians are the most worried, with a neutral setting, up from negative six.
The sectors with the lowest sentiment were cotton, grain and sugarcane growers, which all boasted negative scores.
“Cotton prices continue to face downward pressure ... the overarching theme behind recent price action appears to be very strong global supply, namely from Brazil,” Mr van Doremaele said.
– with AAP
15°C