Farmer confidence survey shows slight gains

The latest Federated Farmers Farm Confidence survey indicates a slight improvement in the sector’s outlook, moving from the lowest confidence level in its 15-year history observed in the previous 2023 survey.

Federated Farmers president Wayne Langford described the shift as one from declining confidence to a state of being ‘less unconfident,’ highlighting that while confidence is not further deteriorating, it remains significantly low.

21 percent of farmers now expect their farm profitability to decline, a substantial decrease from 70 percent in the last survey. The cautious optimism arises amidst concerns over high interest rates, poor commodity prices, regulation and compliance costs, and ‘climate change’ policy, which ranks last among the identified issues despite the evolving discourse around it.

In terms of adjustments and future expectations, the survey reveals a more positive outlook with more farmers anticipating increases in production and spending, alongside a reduction in the number expecting debt increases over the next 12 months. This shift is attributed to better management of inflationary costs and a cautiously optimistic view on future improvements.

The recent change in government and its commitment to easing regulatory burdens is seen as a crucial factor in rebuilding farmer confidence by simplifying compliance processes and fostering growth in the primary sector.

Langford told legacy media outlet RNZ that he was hopeful for a genuine, steady rise in confidence, spurred by efforts to cut red tape and an appeal for an independent inquiry into rural banking to ensure fairness and transparency in lending rates, which have disproportionately affected the rural sector compared to residential lending.

Image credit: Christopher Burns