THE rise and rise of commodity prices continue to underpin strong business sentiment among Victorian farmers, the latest quarterly Rabobank Rural Confidence Survey has shown.
Record-breaking prices in the livestock sector and sustained high milk prices ahead of the 2021/22 season are helping temper concern about low rainfall in some regions over autumn and the increasing difficulty in securing farm labour.
The latest survey results, released today, reveal that while the number of Victorian farmers expecting agricultural business conditions to improve further in the year ahead was down on the March quarter, almost two thirds expect the current very positive conditions to continue.
Farmers have seen a positive opinion of agricultural business and investments are booming, the survey found, with more than one third of respondents looking to increase investment from already high levels, to hold the strongest investment intentions since mid-2008.
The ideal combination of positive seasonal conditions, good water allocations, low water and fodder prices and excellent prices for milk and beef are underpinning an extremely positive outlook for the year ahead.
The survey, completed last month, found 25 percent of surveyed Victorian farmers expected an uptick in business conditions in the coming 12 months. While this was down on the 31 percent with that view last quarter, a further 63 percent were still expecting the overall very good conditions experienced last year to continue, and just nine percent had a pessimistic outlook on the year ahead.
Ms Maskell-Davies said sheep and lamb prices were still very high and improvements in the wool market would be helping stabilise sentiment.
Fences, silos and yards were identified as the main area for investment, followed by new plant and machinery, increasing livestock numbers and adopting new technology.
Those farmers who are planning to increase their investment, nearly a quarter were looking at property purchases to expand their existing farm enterprises.
