Improved rainfall across much of Australia has boosted farmers’ confidence in the agricultural economy, according to the Q3 Rabobank survey completed in August.

Earlier in the year, confidence fell due to low rainfall threatening crops and pastures. However, widespread rain has improved cropping prospects, and strong export demand has increased livestock prices, improving confidence. The Q3 survey found 23% of farmers expect the agricultural economy to improve, up from 15% in Q2, while concerns over drought and rising input costs have lessened.

Confidence improved among surveyed dairy producers, reflecting the continuing recovery of Australia’s milk production and modest global supply growth forecast for the year ahead.

NSW milk production has been supported by favourable seasonal conditions, while severe rainfall deficiencies in western Victoria and South Australia have impacted milk supply in these areas. However, the outlook among dairy farmers is brighter, driven by expectations of an improved season and domestic market conditions.