Brexit to add to gloom on farms

Downbeat farmers have little to cheer about as low dairy prices and political upheaval from Brexit put pressure on farming.

Farmer confidence remains weak, only picking up slightly since January in a survey by Federated Farmers. Their cheerless mood was tracked by the survey held immediately after Britain’s decision to exit from the European Union.

Federated Farmers president Dr William Rolleston said the Brexit decision appeared to have dampened farmer confidence in world markets on top of their existing concerns about the domestic situation.

‘‘The strength of the global economy, post Brexit, is weighing heavily on farmers’ expectations,’’ he said. ‘‘ So not surprisingly, 37.8 percent of respondents told us commodity and farmgate prices were their biggest single concern.’’

Market uncertainties were compounded by their concerns about regulation and compliance costs, health and safety requirements and resource management issues, particularly with freshwater management.

Farmers’ spending intentions for the year ahead remain in negative territory and they continue to need the ongoing support of banks.

Just over a quarter of farmers expected to increase their debt rather than reduce it, a slight improvement from survey results in January.

Rolleston said Federated Farmers would continue to track its members to gauge banking relationships and behaviour.

Monetary policy remained another priority for farmers, reflecting the high exchange rate, followed by regulation and compliance costs

Some farmers had found it difficult to attract skilled and motivated staff the past six months.