The latest Federated Farmers bi-annual farm confidence survey indicates the rural sector is in a good frame of mind half-way through the farming year, with confidence back up to pre-covid levels in the 1100 farmers surveyed.
A net of 5.5% of farmers maintained current economic conditions were “good,” a 34-point leap from last July’s survey, which reported the lowest level of farmer confidence in the survey’s 12-year history.
Similarly, a Lincoln University survey has found the positive attitude here has been shared by farming counterparts in Australia, well on the road to recovery post-drought and the devastating bushfires.
The co-operative study, co-authored between Lincoln, Plant & Food, University of Queensland, AgResearch and NZ Institute of Economic Research, measured the impacts of covid-control measures, ended June, on the two countries’ food systems’ resilience.
It found a high level of ingenuity in Australian and NZ rural communities, with a strong “can do” attitude and rapid adoption to rules and restrictions.
The report identified the resilience came from a combination of good technology, strong networks and experience with prior events and good logistical support from governments.
The report authors noted producers in both Australia and NZ were well-organised, business-orientated and had the right structures and financial backing to manage through the pandemic. Both domestic and export demand for products had also been constant.
One of the important lessons learnt by the sector was the need to upskill young people in rural areas, reverse negative rural migration and diversify export markets.
The survey had twice as many respondents from NZ than Australia.
The Feds survey has found that 43.8% farmers expect the economic conditions to worsen over the next 12 months.
“That may sound a bit grim, but just six months ago, 58.7% of survey respondents expected a deteriorating economy,” Feds president Andrew Hoggard said.
He says farmers were feeling buoyed by the way they had handled the pandemic, despite tourism being torpedoed.
“The agricultural sector is willing and able to maintain production, so long as regulatory and other stumbling blocks don’t trip us up.”
Regulation and compliance remains the single greatest concern for farmers, with 18% naming it. While freshwater policy was singled out by 16.7% and climate change policy by 13.6%.
Staffing remains a major headache, with 36% of respondents reporting greater difficulty in getting skilled, motivated staff, a 28% jump in numbers since last July.
Overall, a net 14% of respondents are confident they will increase production over the next 12 months and this is also being reflected in budgetary intentions.
A net 11% expect farm spending will increase, up from July’s 13% net expecting it to fall. Waikato-Bay of Plenty farmers were most confident.
The upbeat survey results echo expectations from Rabobank last week that cited this season being the fifth consecutive year primary sector producers will have experienced general profitability.
