Optimism returns to Australian agriculture
Story Added : 09th June 2011
Forty-two per cent of those surveyed said strong commodity prices and autumn rainfall is reason for optimism, while 43 per cent expect conditions to stay the same.
“While devastating to some, the extreme weather events earlier in the year also meant that farmers in many areas of the country received an abundance of rain in summer with an additional top-up in autumn. As a result, conditions could not be better for the start of the winter cropping season in much of the country,” Rabobank general manager for rural Australia Peter Knoblanche said.
“That said, as we are at the beginning of the season, farmers are still exercising caution in their outlook as more rain will be needed in the coming month to produce high yields.”
According to Rabobank, a shortage in supply coupled with strong demand is keeping commodity prices firm for beef, sheep and grain.
“Commodity prices have tempered slightly from March’s record highs, but are still strong in comparison to the same period last year. However, the rise of the Australian dollar against the US currency is starting to cause some concern for exporters,” Mr Knoblanche said.
The survey said sugar producers had the lowest confidence levels of all farmers.