Bounceback in Australian farmer confidence

Positivity is returning to the Australian agricultural industry, as sentiment levels are now at their highest point in the past three years.

The latest Rabobank Rural Confidence Survey showed how strong yields throughout the autumn months have improved agricultural workers' outlook, which was made possible by strong rainfall across major cropping regions.

Farmers have high hopes for commodity markets, with dairy farmers emerging as being the most upbeat about what the future has in store.

Of those polled, 40 per cent of farmers said they expect conditions in the agricultural economy to improve in the coming months, which marks a rise from the 29 per cent who said the same in the previous survey. However, 15 per cent still believe conditions are likely to worsen.

Sentiment improved across all states but reached a three-year high in New South Wales, Queensland, Victoria and South Australia.

This is now the seventh consecutive quarter in which Victoria has emerged as having the highest confidence levels in the country.

Peter Knoblanche, Rabobank group executive for Country Banking Australia, said the main influencing factor on confidence this autumn has been the strong rainfall in certain regions.

"The rains couldn't have come at a better time, with much of the winter crop planted on an excellent sub-soil moisture profile.

"Graziers in many parts of Australia also have had more reason to smile, with the markets responding in March and April to the improved climatic conditions," he commented.

There are some parts of the country that are still affected by a lack of rainfall, emphasising the need to take out crop insurance should the worst ever happen.

Central Queensland is one of the worst affected areas, especially as nearly three-quarters of the state remains in drought conditions. Concerns are also growing over north-west and western parts of New South Wales.