Sheep and beef behind rise in farmer sentiment
Farmers became a confident group again; The optimism indicator among primary producers is at its highest level in the last 18 months.
More rain, better growing conditions and improving animal and commodity prices are behind the global rise. Rabobank Rural Confidence SurveyIt comes out on Tuesday.
The headline figure was that farm sector confidence was at a positive 14 percent last quarter, down from a neutral score of zero in the survey.
This is the third time in the last three years that there has been a positive result (those who are optimistic outweigh those who are not).
Sheep farmers topped the rankings with net confidence of 31 percent, Rabobank spokesman Marcel van Doremaele said, attributing it to strong meat prices and recovery in fine wool prices.
Beef producers are right behind with a net 27 percent.
“Australia’s cattle and sheep producers have been buoyed by relatively stable and strong prices driven by strong international demand,” Mr van Doremaele said.
“Rain earlier in the year in the key beef producing regions of Queensland and northern New South Wales has provided good pasture for beef producers in these regions.
“And with the potential for herd rebuilding reducing beef supplies in the United States and reduced beef import volumes from Brazil, fine cut prices for US imports may remain elevated, supporting Australian prices and maintaining producer confidence.”
The survey also ranks optimism by state; Tasmanian farmers are the brightest, with a net 34 per cent, ahead of Victoria (21 per cent net), and NSW is the most improved, jumping from -10 per cent to 15 per cent three months ago.
Queensland beef producers are at 10 per cent in the Sunshine State, while South Australian farmers are at 8 per cent.
Western Australians, who have a negative six to neutral environment, are the most worried.
The sectors with the lowest sensitivity were cotton, grain and sugarcane growers, all with negative scores.
“Cotton prices continue to face downward pressure… the main theme behind the recent price movement appears to be very strong global supply from Brazil,” Mr van Doremaele said.
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