New Zealand Farmer Confidence Rises in 2024, Yet Remains Cautious - Rabobank Survey
Source: The DairyNews
The latest Rabobank Rural Confidence Survey for 2024 reveals a notable uptick in New Zealand farmer sentiment for the second consecutive quarter, signaling an improvement in overall confidence within the agricultural sector.
Despite this positive trend, farmer confidence remains relatively subdued, with a greater proportion of farmers expressing pessimism about the broader agricultural economy's performance in the upcoming year compared to those anticipating improvement.
However, the survey shows a significant rebound in confidence compared to the historic low recorded in September of the previous year.
The recent survey, conducted this month, indicates an increase in farmer confidence in the agri-economy, with a net reading of -16 percent, up from -47 percent previously. While 38 percent of farmers anticipate a deterioration in agricultural conditions over the next 12 months (down from 58 percent in the previous quarter), 22 percent foresee improvement (up from 11 percent), and 39 percent expect conditions to remain unchanged (compared to 29 percent previously).
According to Rabobank's CEO Todd Charteris, the positive trajectory in farmer confidence is encouraging. Charteris notes that optimism among farmers is influenced significantly by government policy, with 28 percent citing it as a key factor. Although this percentage has decreased slightly from the previous quarter, it suggests a growing comfort with the direction of government policy under the new coalition government.
Other factors contributing to optimism include rising commodity prices (20 percent) and favorable overseas markets and economies (17 percent).
However, concerns persist among farmers expecting worsening conditions, with 63 percent citing rising input costs as the primary source of apprehension.
The survey underscores the nuanced landscape of farmer sentiment, reflecting both cautious optimism and ongoing concerns within the agricultural community despite the overall positive trend.
However, the survey shows a significant rebound in confidence compared to the historic low recorded in September of the previous year.
The recent survey, conducted this month, indicates an increase in farmer confidence in the agri-economy, with a net reading of -16 percent, up from -47 percent previously. While 38 percent of farmers anticipate a deterioration in agricultural conditions over the next 12 months (down from 58 percent in the previous quarter), 22 percent foresee improvement (up from 11 percent), and 39 percent expect conditions to remain unchanged (compared to 29 percent previously).
According to Rabobank's CEO Todd Charteris, the positive trajectory in farmer confidence is encouraging. Charteris notes that optimism among farmers is influenced significantly by government policy, with 28 percent citing it as a key factor. Although this percentage has decreased slightly from the previous quarter, it suggests a growing comfort with the direction of government policy under the new coalition government.
Other factors contributing to optimism include rising commodity prices (20 percent) and favorable overseas markets and economies (17 percent).
However, concerns persist among farmers expecting worsening conditions, with 63 percent citing rising input costs as the primary source of apprehension.
The survey underscores the nuanced landscape of farmer sentiment, reflecting both cautious optimism and ongoing concerns within the agricultural community despite the overall positive trend.
