Farmers upbeat re prospects
Farmers are feeling more upbeat about their prospects, although the improvement in their confidence is fragile, according to Federated Farmers.
The farmer organisation has released its midseason Farm Confidence Survey, showing an improvement from the last survey carried out last July.
However, there was a gulf between dairy farmers and sheep and beef farmers. During the period of the survey, dairy prices increased 41 per cent, while the returns on meat and wool fell 6 per cent.
Highlights of the survey of 600 farmers were: * For the first time in three years, farmers’ net confidence in the profitability of their farms is positive;
* Farmers’ production expectations have increased slightly, reflecting dairy mainly;
* For the first time in two and a half years, farmers expect their on-farm spending to increase;
* For the first time in two and a half years, farmers expect to see a reduction in farm debt.
The greatest concern for farmers was farmgate and commodity prices (27.8 per cent of respondents) followed by regulation and compliance costs (17.2 per cent).
Their highest priorities for the Government were to reduce regulation and compliance costs (16 per cent of respondents) followed by general economy and business development (15.2 per cent).
The survey found farmers were finding it increasingly difficult to recruit skilled and motivated staff.
‘‘This is good news but the improvement in confidence is fragile,’’ Federated Farmers president Dr William Rolleston says.
The result was influenced heavily by dairy farmers who saw big increases in dairy commodity prices in the second half of 2016, which have since come back a bit.
‘‘The overall results mask differences between sectors. Dairy farmers are considerably more confident than their sheep and beef counterparts. This reflects the dramatic improvement in dairy commodity prices in the second half of 2016.’’