Farmer sentiment across New South Wales has rallied sharply as this year’s winter harvest gets into full swing, with growers in the New England among those reporting renewed optimism about business conditions.
Rabobank’s latest Rural Confidence Survey, released this week, shows NSW farmer confidence has bounced to a net reading of 15 per cent, up from -8 per cent in the previous quarter, while GrainCorp’s latest harvest data shows receivals rising strongly across northern NSW.
GrainCorp reported that as of 27 October, New South Wales sites had received 507,600 tonnes of grain, with 460,900 tonnes delivered in the past week. The Goondiwindi region recorded strong receival volumes of barley, wheat and some chickpeas, underpinned by consistently high quality. Deliveries of canola, barley and wheat have picked up around Moree and Burren Junction, with the broader region expected to move into full swing in the coming week.
Rabobank NSW state manager Toby Mendl said improving seasonal conditions and solid commodity prices were helping lift spirits in rural areas.
“Late winter and some early spring rain across much of the state had been welcomed by farmers and lifted spirits, particularly for agricultural producers through the Riverina, who had been managing dry seasonal conditions for much of the year,” Mr Mendl said.
The survey found almost a third of NSW farmers now expect conditions to improve over the next 12 months, with only 17 per cent expecting them to worsen. Confidence was strongest on the Northern Slopes and Plains – which includes much of the New England – where sentiment climbed to a net reading of 35 per cent, up from -3 per cent.
Beef producers continue to be the most optimistic, with confidence at 31 per cent compared with 13 per cent previously. “Strong international demand for Australian beef – particularly from the US – continues to drive robust local cattle prices,” Mr Mendl said.
The state’s sheep producers also recorded a rally in sentiment, lifting to a net confidence reading of 14 per cent, while confidence among grain producers improved to -4 per cent, from -25 per cent previously. Mr Mendl said strong crop yields were expected to help balance weaker market prices.
“Farmers, particularly in the southern parts of the state, have still been looking for some additional rain to fill crops, with harvest in the coming months, and to accelerate spring pasture growth,” he said.
Rabobank also found investment intentions were up, with 36 per cent of farmers planning to increase spending on their businesses. On-farm infrastructure remains the top priority, cited by 72 per cent of respondents, followed by new plant and machinery at 38 per cent and technology adoption at 44 per cent.
“For NSW grain growers, investing in on-farm grain storage continues to be a priority,” Mr Mendl said.
“Investing in additional grain bunkers and silos is improving general productivity by providing efficient management of grain and equipment throughout harvest whilst also providing growers with options around the marketing of their grain.”
The survey found NSW cotton grower sentiment remained relatively stable this quarter, although in “negative territory” with a net reading of -34 per cent. Over half the cotton growers surveyed cited soft commodity prices as cause for the pessimistic outlook.
Farmers are also planning to invest in their operations, with 15% looking to acquire more land, 38% considering machinery and plant investment, and 44% looking at new tech. 35% of livestock farmers are looking at increasing the size of their herds, up from 25%.
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