Lower interest rates, stronger dairy and meat prices, and reduced regulations have lifted farmer confidence to its highest level in nearly a decade, according to Federated Farmers’ latest six-monthly Farm Confidence Survey.
Federated Farmers president Wayne Langford said, “Farming families have been through some really tough years recently and that’s weighed heavily on our rural communities.” He noted that lower on-farm costs, easing inflation, and a government willing to scrap unworkable rules have helped turn things around.
Langford emphasised that boosting farmer confidence has been his main goal since becoming president. “We took a long hard look at what was concerning farmers the most back in 2023 and came out with 12 key policy changes for the next government to implement. We called it a ‘roadmap for restoring farmer confidence’ and we’ve been absolutely relentless in pursuing the changes we knew would make the biggest difference behind the farm gate.”
He said that 11 of the 12 proposed reforms have been achieved, including fixing freshwater rules, reviewing methane targets, and rethinking carbon forestry regulations. These changes have helped create a more positive outlook in rural areas.
The survey showed a dramatic shift in farmer sentiment, with a net 33% rating current economic conditions as good – up from a record low of -66% a year ago. Profitability confidence has also surged, with a record 65% of farmers feeling positive about their financial performance. However, Langford pointed out that arable farmers continue to struggle, and regions like Nelson Tasman are still recovering from flooding.
Looking ahead, optimism about future conditions has softened. Only a net 6% of farmers expect the economy to improve over the next year, down from 23% earlier this year. Dairy farmers, in particular, have become more cautious due to concerns about milk prices. Meat and wool producers remain more upbeat.
Despite uncertainty, many farmers plan to strengthen their finances, with 43% aiming to reduce debt in the next 12 months. Hiring pressures have also eased, and rural mental health has shown continuous improvement.
Langford said, “This survey really highlights the progress we’ve made in just 12 months. Arable growers are still doing it tough, but there’s a noticeable lift in confidence across the board. That’s something that needs to be celebrated and built upon.”