Widespread winter rainfall has maintained the spirits of Australia’s farmers, with confidence in the agri-sector rebounding to early-year highs, Rabobank’s latest quarterly Rural Confidence Survey has found.
The survey reported that beef and sheep producers remained upbeat about their prospects, while sentiment lifted in grains, cotton and sugar. In contrast, confidence in the dairy sector slumped to one of its lowest levels in 15 years.
Queensland farmers reported the highest level of optimism. Overall, 37 per cent of the nation’s farmers expect conditions in the agricultural economy to improve over the coming 12 months. Seasonal conditions emerged as the biggest driver of farmers’ confidence this quarter.
Rabobank national manager, Country Banking Australia, Todd Charteris, said widespread and significant rainfall events in June and July had alleviated dry conditions across much of the country, underpinning strong production prospects for the season ahead.
“The grains sector has significantly benefited from the timely rain, with a bumper crop on the cards, particularly in Western Australia,” said Charteris.
“Good yields will be critical this season, as grain prices remain weighed down by burgeoning global stocks of wheat, corn and soybeans.
“While many graziers are coming out of a tough winter period, the good winter rainfall has set them up for fantastic pasture growth in coming weeks.”