Tassie’s big dry hits farmers’ confidence

TASMANIAN farmers have downgraded their expectations for the next 12 months because of recent dry conditions across the Midlands and the state’s South, a national survey shows.

The national rural confidence survey by agribusiness banker Rabobank shows Tasmanian producer confidence has fallen from recent highs to a four-year low. The dairy sec- tor bucked the trend, with the state’s dairy farmers the only surveyed sector to report net positive sentiment.

More than half of the state’s farmers (59 per cent) expect conditions in the agricultural economy to remain similar to the past 12 months.

Rabobank regional manager for Tasmania and Southern Victoria Hamish McAlpin said while rural confidence had come off its recent highs, this didn’t signify a downturn in the outlook for the agri-sector, but was a reflection that “conditions in the sheep and beef sectors, in particular, can’t re- main as good been forever”.

“Many of the state’s farmers have benefited from last year’s good season and high prices for beef, mutton, lamb and wool so the retraction in livestock prices — which still remain well above their five-year average — has seen confidence come off a bit,” Mr McAlpin said.

This outlook was reflected in the survey, with 53 per cent of farmers nominating com- as they have modity prices as a key reason they expected conditions to worsen. In addition, dry conditions were a concern for 40 per cent of the state’s farmers.

“June was an exceptionally dry month for most of Tasmania, with the east of the state reporting its driest June on record,” Mr McAlpin said.

“Good rain has ... been largely confined to the North, with conditions remaining dry in the South and across the Midlands.”