Australian primary producers are becoming increasingly negative in the face of fallout from the global financial crisis, according to the latest research undertaken by Rabobank.
The Rabobank Rural Confidence Survey has seen sentiment among Australia’s primary producers fall to a two-year low but well short of the extreme lows in confidence experienced during the difficult drought years of 2002 and 2006.
The survey revealed that 48 per cent of farmers now expected conditions to worsen in the coming year, up from 39 per cent in the previous quarter, while only 16 per cent of farmers expected conditions to improve.
Commenting on the survey results, Rabobank general manager, rural Australia, Peter Knoblanche said the survey, undertaken only a month ago, showed farmers’ worries about the future were overshadowing currently favourable seasonable conditions across much of Australia and other positive factors such as lower input costs, a weaker currency and reduced interest rates.
He said the decline in confidence appeared to be more indicative of farmers’ concern about the future negative impact of the global financial crisis, rather than a reflection of anything that had actually been experienced to date.
