General News
4 January, 2023
Input costs hit confidence
FARMER sentiment across Victoria has broadly held steady over the recent quarter, after tracking downwards over most of the past year. Latest Rabobank confidence survey says input costs remain a concern for farmers, especially grain growers, who are...
FARMER sentiment across Victoria has broadly held steady over the recent quarter, after tracking downwards over most of the past year.
Latest Rabobank confidence survey says input costs remain a concern for farmers, especially grain growers, who are looking ahead to next year’s crops and crunching the numbers.
The survey found slightly fewer farmers expected business conditions to improve in the next 12 months (12 per cent, down from 14 per cent in the previous survey), 46 per cent expect conditions to stay the same (up from 38 per cent) and 38 per cent expect a deterioration (slightly down from 40 per cent last quarter).
Excessive rain (45 per cent) and rising input costs (43 per cent) topped the list for farmers who expect the agricultural economy to worsen.
On the other side of the ledger, good seasonal conditions (46 per cent) and rising commodity prices (56 per cent) were the main reasons for anticipated improvement. The blending of high input costs and some softening in the red meat markets – particularly lamb – has tightened margins.