Rabobank survey: Farmer confidence in Victoria lower than Tasmania, NSW

Farmers nationally are mostly buoyant about their prospects, but a new survey also finds it’s a different story in Victoria.

Dairy farmers feeling upbeat about strong opening farmgate milk prices. Picture: Zoe Phillips

Victorian farmer confidence levels have taken a hit, despite a year of record-breaking livestock prices and a stellar season across commodities.

That’s according to the latest Rabobank quarterly rural confidence survey.

It shows while overall farmer confidence levels have eased slightly when compared to the quarter prior, about 90 per cent of Australian farmers expect favourable farming conditions to either continue or improve for the remainder of the year.

Tasmania and NSW lead the charge when it comes to positive sentiment, according to the survey.

Boosted water allocations and a high-yield grain production year have given NSW farmers a lift in confidence, according to the survey, while Tasmanian farmer confidence levels reached six-year highs.

That was driven particularly by dairy farmers feeling upbeat in the face of good opening milk contracts.

But in Victoria, low rainfall and increased difficulty sourcing secure farm labour were concerns for producers, despite record prices in livestock and dairy.

Rabobank Australia chief executive Peter Knoblanche said the results showed the overall positive environment for Australian agriculture.

“There is certainly a view out there among many farmers that business conditions right now are excellent,” Mr Knoblanche said.

“Strong prices for grain and terrific growing conditions in most regions have driven another near-record winter crop planting program across the country, with early estimates for a second-straight year of bumper tonnages of wheat, barley and canola when harvested at the end of the year.

“Meanwhile commodity prices in the beef and lamb sectors are also supporting producer confidence, with low supply and high demand for protein pushing prices to levels not seen before. And dairy confidence is also strong on the back of favourable milk price contracts and improved water allocations.”

Gippsland farmers reported the most optimistic outlook for the dairy industry, while northwest grain growers were still looking skywards for rain to boost winter crop prospects before harvest.

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