The state’s widespread wet autumn has helped lift rural confidence, with most farmers expecting this year to either be a better year for the agricultural economy or as just as good as last year.
The state’s widespread wet autumn has helped lift rural confidence, with most farmers expecting this year to either be a better year for the agricultural economy or as just as good as last year.
About 36 per cent of Western Australian farmers expect conditions to improve this year, up 21 per cent on the previous quarter, while 48 per cent are anticipating similar conditions to last year, according to the latest quarterly Rabobank Rural Confidence Survey.
The survey found WA farmers to be the most positive in the nation and the only state to report an upswing in rural sentiment this quarter, with a net confidence level of 23 per cent, up from 15 per cent reported in the previous survey.
Only 13 per cent of farmers surveyed expected conditions to deteriorate this year.
Rabobank Australia acting state manager for WA, Steve Kelly, said widespread rain across the state had been a big contributor to farmer confidence.
“Over the past couple of months we’ve seen excellent falls across approximately 85 per cent of the state,” he said.
“The timing couldn’t be better and many grain producers are experiencing their best start in over a decade.”
The strong start to the season was a confidence boost for graingrowers with 33 per cent expecting conditions to improve (nearly tripling the results of the previous survey), while 46 expect conditions to remain stable.
Across WA livestock producers, the net confidence of beef producers has risen to 53 per cent, while confidence among sheep producers has surged to 38 per cent, up from 5 per cent reported in the previous quarter.
Mr Kelly said solid prices and seasonal conditions were encouraging for livestock producers in the South West agricultural zone, while the Pilbara and Gascoyne regions experienced drier-than-average conditions to date.
“Beef prices remain buoyant and are at very profitable levels and we’re seeing similar with sheep meat,” he said.
The survey also found livestock farmers in the South West were the most optimistic, while those in the areas to the north and north-east of Geraldton were less optimistic as they hadn’t received much rainfall so far this year.
Those in the Wheatbelt expected similar conditions to last year.
Along with seasonal conditions, commodity prices also drove confidence among those farmers who were bullish on the year, while others were feeling more confident as a result of the state of overseas markets.
However, despite a rise in overall confidence, the survey also found more farmers had lowered their farm income expectations for the coming year.
About 34 per cent of survey respondents anticipated an improved financial position, down 10 per cent on the previous quarter, while those expecting gross farm incomes similar to the past year increased by 4 per cent, to 44 per cent.
Mr Kelly said income expectations had moderated from a very high level, with uncertainty over grain prices a factor.
“Last year was a profitable one for many farmers in WA,” he said.
“That over a third of farmers are expecting an even better year shows how well this year has started.”
The survey also found 91 per cent of farmers intend to either increase or maintain their level of investment in their farm businesses.