NSW Farmer expectations at 15-year high: Rabobank

The promise of a bumper spring has seen nearly half the state expect improved economic conditions, while nine in 10 NSW farmers expect conditions to at least remain on-par with the last 12 months.  

Meanwhile, beef and sheep graziers remain bullish and confidence lifted strongly in the cotton sector, although low farmgate milk prices continue to weigh on dairy sentiment. 

The Rabobank survey, completed last month, saw the net NSW Rural Confidence index more than double this quarter to 35 per cent, up from 16 per cent. 

Overall, 43 per cent of farmers expect conditions to improve over the coming 12 months (up from 30 per cent in the previous survey), while just eight per cent expect conditions to worsen, down from 14 per cent.

A total of 47 per cent had a stable outlook, expecting similar conditions to the last 12 months. 

Rabobank national manager Country Banking Australia Todd Charteris said rain was to thank for the positivity across the state’s rural sector. 

“Even the north-west of the state has had the break to get crops in, albeit late in the season – which for many, will be their first crop in four years,” Mr Charteris said.  

Mr Charteris said yields would underpin margins this season, with grain prices remaining under pressure from burgeoning global stocks of wheat, corn and soybeans – although returns remain strong for chickpeas, and to a lesser degree, canola. 

In some areas of southern NSW, there had been too much rain, Mr Charteris said, with reports of crop loss from water logging.

For most however, he said rainfall has been a blessing, with 60 per cent of farmers with a positive outlook citing seasonal conditions.