Summer conditions hit rural confidence

Australia's volatile weather system is leading to a continued decline in farmer optimism, as the latest Rabobank Rural Confidence Survey has sunk to its lowest level for the past 12 months. As the summer gets off to a hot, dry start, the first of the season's treacherous major bushfires has begun to hit producers hard.

Confidence across the majority of sectors of Australian agriculture was weaker, with just 28 per cent of those farmers surveyed now expecting conditions to improve over the next year, down from 47 per cent in the previous survey. Meanwhile, those believing conditions to worsen leapt from 13 to 23 per cent.

When asked what was behind the sliding confidence, Rabobank Australia deputy CEO Peter Knoblanche said the recent bushfires in Western and South Australia had reminded people of just how delicate the country's conditions were for farmers.

"These fires also bring home to farmers everywhere just how exposed agricultural regions are to bushfires at this time of year," he said.

Tough conditions set to continue

The Bureau of Meteorology reports that rainfall is continuing to decline in eastern states, meaning the risks of bushfires aren't likely to disappear anytime soon. However, research from The Conversation has found that augmentation of city water supplies, as well as modernised bush irrigation systems, mean the stocks and usage of the nation's most precious agricultural resource are being managed more effectively than ever.

Farmers across the nation are encouraged to ensure they haveadequate farm and crop insurance in place to protect their livelihoods.