Looking forward beyond the dry

IT HAS been tough on the land for farmers who are dependant on the weather, it has been dry, way beyond a normal season, and its eating into farmers bottom line, big time.

There has been some rain, but the country sucked it up and is in need of more to gain some pick before the chill of winter sets in.

Despite this setback, a recent survey has found that farmers are more positive about the future, especially those who were

prepared, and destocked before the big dry set in.

According to Rabobank’s recent Rural Confidence Survey, Victorian farmers have risen above a “dry summer” to post a solid turnaround in sentiment, with the state’s rural confidence now at a 12-month high.

The survey revealed that expectations of good seasonal conditions, along with positive commodity prices and international markets, are shown to be driving increased positivity in the sector.

The quarter one survey found net farmer confidence in Victoria had climbed into “positive territory” in the new year, with a reading of 5 per cent, up from -9 per cent in the December survey.

A quarter of Victorian farmers surveyed now expect agricultural economic conditions to improve over the coming year while the proportion expecting agribusiness conditions to worsen also fell.

Completed last month, the latest survey found Victorian farmers credited better seasonal conditions, along with commodity prices and global markets/economies, as having a positive impact on their business.

By region, the Rabobank survey found confidence levels were up in the Victorian High Country, with sentiment now the highest in the state, while the Goulburn Valley, Gippsland and South-West Victoria also posted a rebound in sentiment.

Rabobank state manager for Victoria and Tasmania Sally Bull said that while many Victorian farmers had dealt with a challenging year in 2024 with well below-average rainfall across much of the state negatively impacting production, farmers are approaching the new year with a sense of optimism.

“Farmers are holding expectations for a better season, improving commodity prices and international market opportunities that will have a positive impact on their businesses in the year ahead.

“As always, there is a lot of anticipation around the autumn break as farmers are waiting impatiently for that first significant rainfall event to get the growing season started.

“It has continued to be exceptionally dry across much of western Victoria, as well as pockets in east Gippsland.”

Ms Bull said many Victorian farmers were taking the opportunity to really look ahead and plan for future needs.

“Looking in the rear-view mirror, many farmers can see they have come through a pretty good period in recent years, with reasonable seasons, reasonable prices and rising asset values, and are now taking the time to consider how to best prepare their businesses for the next cycle.”