27 Jan 2011

Farmers now more optimistic - survey

1:00 pm on 27 January 2011

Latest reports on the agriculture sector are reinforcing the trend in other surveys of a more optimistic outlook among farmers over the next 12 months.

A mid-season farm confidence survey for Federated Farmers shows that farmers are considerably more positive about the profitability of their own farms.

But it says that confidence remains patchy with South Island farmers emerging a lot more optimistic than their counterparts hit by La Nina in the North Island.

Another report issued on Thursday shows that the outlook for farmers is positive. However, it will be challenging for them to turn it into a profitable year.

The Rabobank Food and Agribusiness report says farmers will have to deal with higher commodity prices, as well as a strong New Zealand dollar and ongoing volatility in global markets.

It says tightness in global markets suggests that agri-commodity prices will remain at elevated levels well into 2011.