NZ farmer confidence rebounds
New Zealand farmer confidence rebounded in the first quarter of this year, led by improved optimism among dairy farmers. A net 13 percent of farmers were confident in the outlook for the agricultural economy in the first quarter, from a net 15 percent who were negative about the outlook in the fourth quarter of last year, according to Rabobank’s latest rural confidence survey. The total number of farmers expecting the rural economy to improve lifted to 36 percent from 23 percent in the previous survey while those expecting it to worsen fell to 23 percent from 38 percent, Rabobank said. The swing to a more positive outlook in the latest survey was led by dairy farmers, with 45 percent reporting a confident outlook in the coming 12 months, up from just 21 percent in the previous survey. Only 19 percent of dairy farmers expected conditions to worsen, down from 45 percent in the previous survey. The survey of about 450 farmers completed earlier this month was taken after prices had jumped 22 percent from low levels in the GlobalDairyTrade auction, but before the most recent auction where average prices fell 8.8 percent. “The upswing in dairy farmer sentiment was likely to have been driven by the expectation that global dairy commodity prices had hit the bottom of the current trough through December and January and were showing signs of improvement,” said Rabobank New Zealand chief executive Ben Russell. “Our view is that prices will remain challenged as the global dairy market looks to deliver the signal to restrain production growth,” Russell said. “That said, as we progress further into 2015, we expect to see a tightening in the market which will generate modest upward price pressure in the second half of the year.” Of all New Zealand farmers expecting the agricultural economy to […]