Farmer confidence in Tasmania drops amid Middle East tensions

Confidence amongst Tasmanian farmers has dropped over the last three months, according to a new survey conducted by Rabobank.

The latest Rabobank Rural Confidence Survey shows that the trend is occurring across Australia.

However, Tasmanian farmers remain the most confident in the nation.

In the first survey since the outbreak of hostilities in the Middle East, Tasmania’s 

net rural confidence index dropped from 21 per cent last quarter to now sit at -38 per cent.

Around 44 per cent of Tasmanian farmers surveyed expect business conditions to worsen over the coming year, with 6 per cent saying they will improve and 39 per cent believing they will remain the same.

Nearly half of the respondents cited rising input costs as a key reason for their concern.

Rabobank area manager for Tasmania, Stuart Whatling, said the state’s diversified 

enterprise mix contributed to the complexities of falling sentiment in the state.

“Rising input costs remain top of mind for Tasmanian farmers,” Mr Whatling said.

“Fertiliser in particular has been a major concern, as it’s a double-edged sword of both availability and cost.”

Mr Whatling said the impact of tensions in the Middle East is similar to a drought on the farm.

“However, while Tasmanian farmers have invested heavily in drought mitigation strategies and irrigation, there isn’t a corresponding mitigant to this input shock.

“The resilience we have seen in Tasmania is supported by their enterprise choice and 

flexibility.

“Although many sectors are exposed to increased prices for fuel, fertiliser and freight, the level of diversification on Tasmanian farms helps spread risk.”

The survey also found that  36 per cent of Tasmanian farmers continue to report worries about drought.

“Seasonal conditions remained very dry across much of Tasmania when the survey was 

conducted,” Mr Whatling said. 

“Pleasingly, there was statewide rain at the end of May, and farmers are hopeful this will 

continue through winter, although they remain mindful of the drier outlook ahead.”