Rabobank Rural confidence Survey finds farmers optimistic about season

The latest Rabobank Rural Confidence Survey, released June 15, has revealed significant autumn rain was the biggest influence on the positive sentiment.

The survey found farmers in the North West NSW pastoral regions have been particularly buoyed by the improved seasonal conditions, and there was also strong sentiment among farmers in the Central NSW.

Rabobank regional manager for Central New South Wales Toby Mendl said while he was pleased with the results it was expected given the significant improvement in the state of the season across NSW.

"In saying that there are some pockets that do need rain across the state, but by and large it is a much improved position," he said.

"As far as the central west goes (for rain) we're looking pretty well. Most areas have received up to an inch on the weekend which was timely and topped up the crops and feed already in the ground."

ALSO MAKING NEWS: Upgrade works continue on construction of Binnaway horse sport yards

Mr Mendl added that the winter rain forecast is above average, which was boosting farmer sentiment going forward.

NSW grain growers were most upbeat about prospects for the coming year, with 81 per cent expecting agricultural economic conditions to improve over the next 12 months compared with 52 per cent earlier this year.

Seasonal conditions are behind the optimism for 95 per cent of growers.

Despite the global health pandemic, COVID-19 is a minor consideration compared to the bulk of producers getting back to almost full production, particular grain growers, Mr Mendl said.

"There's some good optimism around a good year this year and the graziers are optimistic in that while it's going to take them a bit longer to get to full stock numbers, they're feed costs and sourcing feed and managing that side of their business has significantly improved," he explained.

"Thankfully for us the coronavirus impact is, to-date, negligible...."

ALSO MAKING NEWS: Feral pig campaign appoints John Maher as joint steering group chair

NSW cotton growers have also recorded a dramatic turnaround in sentiment driven by a better season, with 52 per cent expecting conditions to improve, compared with just five per cent in the March quarter.

Improved commodity prices and seasonal conditions have helped drive up sentiment among NSW dairy farmers, with those expecting conditions to improve jumping from 19 per cent last quarter to 59 per cent now.

Sentiment is firm among beef producers, with 46 per cent expecting conditions to improve (was 49 per cent last quarter).

Mr Mendl said farmers just want to get back on tractors and sowing crops or actively looking to source stock.

"They're just busy managing their own businesses... I think there is some uncertainty out there around what coronavirus may mean for the supply chain in full, but to date we just haven't had those impacts so fingers crossed it stays like that," he said.

Despite a sharp fall in wool prices in recent months, sheep graziers remain optimistic about the year ahead with 47 per cent of those surveyed saying they expect conditions to improve (compared with 49 per cent at the start of the year).

ALSO MAKING NEWS: New trailer to boost Rescue Squad's ability to help large animals

The seasonal turnaround is boosting confidence about an improvement in incomes, with 45 per cent of NSW respondents expecting a higher gross farm incomes over the coming 12 months (up from 36 per cent last quarter).

Cotton farmers have expressed the biggest improvement in sentiment related to incomes, with 56 per cent expecting stronger gross farm incomes in the coming 12 months (compared to no respondents in March).

While 69 per cent of grain growers expect higher incomes (up from 55 per cent in March).