Rabobank farm survey shows optimism among dairy, beef, grain farmers

Victorian farmers are feeling optimistic about the new season ahead after a year of strong prices and solid rain, a new survey has revealed.

Victoria’s dairy farmers are optimistic about the coming season. Picture: Zoe Phillips

GOOD summer rain and strong commodity prices have boosted optimism for a good season ahead for Victorian farmers.

According to the latest Rabobank rural confidence survey, 31 per cent of Victorian farmers were expecting business conditions to improve this year, while 50 per cent were anticipating the good conditions experienced last year to continue for the next 12 months.

The survey found little difference between dairy, grain and beef producers in their optimism for the new year.

About 35 per cent of the state’s dairy farmers, 34 per cent of grain growers and 33 per cent of beef producers expecting business conditions to improve.

About 29 per cent of sheep producers expected an improved business environment.

Sixty per cent of grain growers and 54 per cent of dairy farmers surveyed expected business conditions to remain similar to last year.

Strong commodity prices were the biggest driver of the optimism among the 260 Victorian farmers surveyed from late January to mid-February while seasonal conditions were second.

The Rabobank survey of Victorian farmers found those in the Gippsland region with the most positive outlook for the year ahead, with 44 per cent expecting the agricultural economy to improve.

Rabobank southern Victoria regional manager Deborah Maskell-Davies said it had been “a cracking summer” for the state.

“With summer now over, we look through March and April to the autumn break and there always remains some uncertainty that weighs on farmers at this time of the year,” Ms Maskell-Davies said.

She said seasonal conditions were “near perfect”.

She said pasture growth had been sustained through the summer and water supplies had held up well in nearly all regions.

“Irrigation allocations in the Macalister irrigation district and Goulburn Murray irrigation district are both good and farmers in those areas look forward to what is hoped will be a positive traditional winter in-flow in coming months,” she said.

Ms Maskell-Davies said overall, all areas were faring extraordinarily well seasonally, and land prices in all regions — and especially where rainfall is reliable — had been escalating quickly,

“The Wimmera region is almost turbocharged at the moment and farmers there are on an absolute high,” she said.

“Crops were formidable, potentially better than many may had seen before.

“Rainfall in the Mallee had been patchy, but those who received rain had good results.

“Overall the crop was above average in that region.”

Nationally, some areas of Western Australia and Queensland had experienced dry conditions over summer but the mood was still positive among those states’ farmers.

Overall, more than 1000 farmers were surveyed nationally.

Rabobank Australia chief executive officer Peter Knoblanche said Australian agriculture had been spared much of the devastation from COVID-19 felt throughout the global economy, but workforce constraints, especially in the wool and horticulture sectors, were still a concern for some farmers this year, while market volatility, particularly in export markets dependent on China, was also behind nervousness in some sectors.

Mr Knoblanche said one of the most exciting developments unfolding in the sector was the record levels of investment, with farmers capitalising on high returns, excellent seasons and

favourable business conditions to build greater productivity and profitability into their enterprises.

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