SA farmers buoyed by growing confidence, Rabobank’s latest survey finds

Confidence in the state’s agricultural sector is growing, following a promising start to harvest and rainfall in some pastoral regions.

Rabobank’s Rural Confidence survey has found 31 per cent of farmers are optimistic about the agricultural sector’s outlook over the next year. Picture: Zoe Phillips

• SA grain prices soar to $380 a tonne amid drought demand
• Frost wipes out hundreds of tonnes of SA crops
• SA farmers’ outlook brighter in latest Rabobank survey
• Food prices to rise on back of drought

Confidence in the state’s agricultural sector is growing, following a promising start to harvest and rainfall in some pastoral regions, a rural survey has found.

Rabobank’s Rural Confidence survey, completed last month, showed 31 per cent of farmers were optimistic about the agricultural sector’s outlook over the next year, compared with just 13 per cent last quarter.

The organisation’s regional manager for SA, Roger Matthews, put the improved outlook down to good market conditions for sheep graziers and more certainty for grain growers as harvest was underway.

The survey results showed about 35 per cent expected agricultural economic conditions to improve, up from 24 per cent during the previous survey.

“At this time of year, we do tend to see sheepmeat prices pull back a bit with the abundance of spring lamb, but the drought seen in eastern states is keeping supply tight and … RaboResearch analysts are expecting prices to remain above five-year averages,” Mr Matthews said.

He said Chinese interest in the wool market had dampened slightly, causing a “price correction”.

“But it is coming back from such highs that South Australian sheep producers will unlikely be too concerned in the short term as most businesses here are now built to run on a far lower cost base,” Mr Matthews said.

With the grain season essentially completed, growers were also more confident because they knew where they stood. About 31 per cent of grain farmers surveyed had a positive outlook, up from 15 per cent.

The forecast for the state’s winter crop was forecast to be down about 16 per cent on last year, to 5.8 million tonnes, but Mr Matthews said some regions’ crop yields had been better than expected.

But falling prices and dry conditions were hampering the dairy and beef industries.

The survey found 65 per cent of dairy producers and 62 per cent of beef farmers expected worsening conditions.

About 96 per cent of SA producers reported they felt either somewhat, or very prepared, to handle drought.

The state’s agricultural sector had experienced a number of strong years, helping build its resilience, Mr Matthews said. Rabobank organises a survey of about 1000 primary producers across Australia four times a year.

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