The economic optimism among farmers for the month of July reaches 65%, the latest Federated Farmers’ Farm Confidence Survey has revealed.
The biannual survey also revealed that farmers’ views on current economic conditions have climbed to their highest level in eight years, with 33% rating conditions as good, a notable increase from a record low of -66% just one year prior.
Federated Farmers president Wayne Langford attributed the positive sentiment to stronger dairy and meat prices, reduced interest rates, and the easing of government regulations.
“It’s a really, really positive result for farmers, but also a really, really positive result for New Zealand. When New Zealand farmers are doing well, New Zealand is doing well,” Langford said.
The survey reported that farms across the country were experiencing profitability, with Otago-Southland farms leading at 72%, followed by the East Coast of the North Island at 69%, and Taranaki-Manawatu at 66%.
In terms of challenges faced, the survey identified regulation and compliance costs as farmers’ primary concerns, with climate change policy, the emissions trading scheme, and local government rates also ranking highly.
“Farmers will know that they are in it for the long game, and when they are looking at this survey and saying, Hey, do we have confidence in our businesses—in farming in general—in the future?- no doubt they will be looking at it with confidence to carry on.”
Furthermore, a large proportion of farmers intend to strengthen their financial position, with 43% planning to cut debt over the coming year. Hiring pressures have also lessened, and there has been ongoing progress in rural mental health.
“This survey really highlights the progress we’ve made in just 12 months. Arable growers are still doing it tough, but there’s a noticeable lift in confidence across the board. That’s something that needs to be celebrated and built upon,” Langford said.