Survey Reveals Growing Concerns Before Middle East Conflict
SYDNEY — New South Wales (NSW) farmer confidence has declined significantly due to rising input costs and dry weather conditions, according to the latest Rabobank Rural Confidence Survey. The survey, conducted prior to the ongoing Middle East conflict, revealed that the state’s rural confidence fell to a net reading of -20%, a steep drop from -3% in the previous quarter.
The survey highlighted that 39% of NSW farmers expect agricultural conditions to worsen in the next 12 months, compared to 25% in the previous quarter. Toby Mendl, Rabobank’s state manager for NSW, noted that the survey was completed before the onset of the Middle East conflict, which has since exacerbated concerns about cost and availability of farm inputs.
Regional and Commodity-Specific Sentiment
Confidence among Riverina-based producers plummeted, with sentiment dropping to a net -40%. Similarly, the Central West and North West regions reported significant declines, with confidence readings of -33% and -27% respectively. In contrast, North Coast farmers showed improved confidence, with a net reading of 5%, up from -8% previously.
By commodity, grain growers faced a sharp decline in confidence, down to -48%, while cotton growers reported a dramatic fall to -85%. Mendl cited poor global cotton prices and dry conditions as key factors impacting the outlook for cotton growers. Meanwhile, beef and sheep producers also saw declines in confidence, attributed to ongoing dry conditions despite strong livestock prices.
Despite the overall decline in confidence, investment intentions among NSW farmers remained stable. The survey found that 35% of farmers planned to increase investment, while 66% intended to invest in on-farm infrastructure, and 27% aimed to boost livestock numbers. Rabobank’s Rural Confidence Survey is a comprehensive assessment of the outlook and sentiment within Australia’s agricultural sector, providing crucial insights since 2000.
Source: newshub.medianet.com.au
Last updated: 30 March 2026, 3:47 pm
