Federated Farmers survey shows 'a significant shift in the mood of rural New Zealand'

Confidence levels among the country's farmers have hit the highest level in more than a decade, according to a Federated Farmers survey.

Federated Farmers’ latest twice-yearly Farm Confidence Survey shows farmers’ confidence in current general economic conditions has surged from "a deeply negative" -66% in the last survey in July 2024 to a net positive score of 2%. This marks the largest one-off improvement since the question was introduced in 2016.

And a net 23% of farmers now expect better economic conditions over the next year - the highest confidence level since January 2014.

This comes amid falling interest rates and rising commodity prices, with dairy farmers, for example likely heading for a record farmgate milk price of around $10 per kilogram of milk solids this season.

Federated Farmers has been conducting this survey of its farmer members since 2009. The latest one had 784 online respondents in late January-early February, across the various farming sectors and in 24 provinces.

The survey has recorded a sharp lift in profitability, with 54% of farmers now reporting making a profit - double the number in the last survey six months ago.

Federated Farmers president Wayne Langford says he's definitely noticed "a significant shift in the mood" of rural New Zealand, with farmers feeling a lot more positive,"

"The last few years have been bloody tough for a lot of our farming families, with falling incomes, rising interest rates and unpaid bills starting to pile up on the kitchen bench.

"At the same time, we’ve also been struggling with an incredibly challenging regulatory environment and farming rules that haven’t always been practical, affordable or fair.

"These survey results paint a clear picture of a sector finally able to breathe a sigh of relief as some of that weight is lifted," Langford said.

He noted that while farmer confidence  is at its highest point in more than a decade, "it’s still only just in the positive".

"It’s been a remarkable recovery in farmer confidence over a short period of time, but I’m very conscious that we were coming off an extremely low base.

"We’ve come a long way, but there’s a long way to go yet. Federated Farmers will keep pushing hard to cut costs out of farmers’ businesses and reduce some of that regulatory burden."

The survey results show regulation and compliance costs remains the greatest concern for farmers, followed by interest rates and banks, and input costs.

"When it comes to farmer confidence, a lot of it comes down to what’s coming into our bank account, and what’s going out the other side. It’s a simple equation," Langford said.