Farmer confidence has reached its highest point in more than ten years, recovering from the lows experienced in recent times, the latest survey by Federated Farmers has revealed.
Decreasing interest rates, increasing incomes, and more favourable farming regulations were said to be the factors that have highly contributed to this positive shift.
The survey indicates a remarkable rebound in farmers’ confidence regarding current general economic conditions, which has surged from a deeply negative -66% in July 2024 to a net positive score of 2%.
Meanwhile, a net 23% of farmers now anticipate improved economic conditions over the next year, marking the highest level of confidence since January 2014.
Additionally, 54% of farmers are now reporting profits, which is double the percentage recorded in the previous survey conducted six months ago.
“The last few years have been bloody tough for a lot of our farming families, with falling incomes, rising interest rates, and unpaid bills starting to pile up on the kitchen bench,” Federated Farmers president Wayne Langford said.
“At the same time, we’ve also been struggling with an incredibly challenging regulatory environment and farming rules that haven’t always been practical, affordable, or fair,” he added.
For Langford, the survey results “paint a clear picture of a sector finally able to breathe a sigh of relief as some of that weight is lifted.”
Langford said while farmer confidence has risen to its highest level in over a decade, it remains only slightly positive.
“It’s been a remarkable recovery in farmer confidence over a short period of time, but I’m very conscious that we were coming off an extremely low base.”
“We’ve come a long way, but there’s a long way to go yet. Federated Farmers will keep pushing hard to cut costs out of farmers’ businesses and reduce some of that regulatory burden.”
The survey has also shown that interest rates and banking issues have consistently ranked as top concerns for farmers.
According to Langford, “Interest payments are a huge cost for most farming businesses, and farmers have been under massive pressure from their banks in recent years.”
Langford encourages the government to closely examine the banking system and assess whether farmers are receiving a fair deal from their lenders.