It’s a good time to be a Tassie farmer
TASMANIAN farmers are feeling upbeat, with a survey showing 100 per cent of those who work on the land are expecting bumper business conditions to either continue or improve over the year ahead.
The latest Rabobank Rural Confidence Survey shows strong agricultural commodity markets are behind the positive vibe.
Rabobank regional manager for Tasmania Stuart Whatling said seasonal and business conditions across the state were “very positive”.
“Commodity prices are still outstanding and farmers reaped bumper rewards from strong prices, which are forecast to continue,” Mr Whatling said.
On the downside, Covid-19 related labour restrictions due to border closures are troubling the horticulture industry and higher freight costs are biting those who export produce to overseas markets.
Tea Tree wool and prime lamb producer Chris Gunn said things were good across the agricultural sector with producers getting good prices.
“Wool prices are 50 per cent above what they were at this time last year and we are getting solid prices for red meat as well,” Mr Gunn said.
“The seasonal conditions have also been favourable over the past 18 months.
“There is a positive mood but there are some concerns. It is hard to get labour, especially shearers. Vegetable and fruit growers are also having a hard time finding workers. No-one wants to do manual labour any more.”
Don farmer Richard Bovill said the optimism among farmers was justified.
But he said the positive outlook was tempered by the reality of looming labour shortages and ongoing concerns
about getting produce off the island.
“Very low interest rates means producers are not worried about drowning in debt” Mr Bovill said.
“If lockdowns are over by summer, farmers will be really happy. Thousands of jobs are about to come on at once and we are dependent on backpackers and other seasonal workers.”
The survey, released this week, reveals for the second consecutive quarter, 100 per cent of the state’s farmers are optimistic. The survey was done in August and it found 39 per cent of the state’s farmers
expect business conditions to improve over the next 12 months. This was down from 45 per cent in the previous quarter, Mr Whatling said, but the remaining 61 per cent of farmers expected conditions to continue.
“No surveyed farmers this quarter are of the view that conditions are likely to worsen,” Mr Whatling said.
“These really are unprecedented times for Tasmanian livestock producers, with a sustained period of really good seasonal conditions and great prices, and the forecast that those conditions will be with them for a while.”