Confidence in Tasmanian farmers highest in nation, Rabobank survey shows

Tasmanian farmers remain the most confident in the nation, according to a new Rabobank survey.

Its latest quarterly farmer survey results show that overall net rural confidence in the state is at 31 per cent.

In the previous quarter, net rural confidence in Tasmania was at 34 per cent.

But it remains well above the national average of 14 per cent.

Looking ahead, 37 per cent of Tasmanian farmers have an optimistic outlook on the agricultural sector.

Rabobank Tasmania area manager Stuart Whatling said the results in the latest survey for the state reflected “realistic expectations rather than deteriorating conditions”.

“Across sheep and beef sectors, producers are experiencing strong prices, with wool also improving,” Mr Whatling said.

“There’s a strong expectation this status quo will be maintained over the coming year.”

Mr Whatling said Tasmanian producers remain cautiously optimistic.

“What constitutes a ‘good’ season varies across our diverse mix of commodities.

“But overall, Tasmanian agriculture is in a strong position.

“Producers are benefiting from improved prices and relief from rain, driving their willingness to continue investing in the productivity and sustainability of their businesses.”

The survey results suggested that sheep producers had the most confidence in Tasmania, with around 57 per cent expecting conditions to improve.

“Demand for store lambs is expected to be intense over the summer, supported by feed 

availability, which remains better than average in many areas,” Mr Whatling said.

Most of Tasmania’s dairy farmers expect conditions to stay the same, while beef producer confidence also held steady, with half still expecting conditions to remain unchanged. 

"The high beef prices in recent times have also translated to increased income for the 

dairy sector, benefiting milk producers with cull cows or a beef component to their 

business,” Mr Whatling said.

Despite a colder-than-usual spring, which slowed pasture growth in many parts of the state, he said it did not dampen farmers’ seasonal outlook.

Only 20 per cent were worried about seasonal conditions, with 37 per cent citing it as a cause of optimism.

“What could have been a bumper spring has been held back by very cold conditions, but rainfall has been adequate in most regions,” Mr Whatling said. 

“The Bureau of Meteorology is not signalling a strong seasonal bias or imminent heat risk, underpinning producers’ cautious optimism about what summer has in store.”

Mr Whatling said rising input costs were the biggest concern for Tasmanian farmers.

“When we talk cost of production, it’s moved beyond high fertiliser, chemical and fuel 

prices.

“Producers now face increased costs across machinery, labour, insurance, repairs and other general operating expenses. 

“Every aspect of running a farm business has become more expensive.

“Producers are very aware that while prices are good, rising costs are absorbing a lot of that upside.”