CONFIDENCE among the nation's farmers has jumped to a four-year high as solid January rains, the falling Australian dollar and rising beef prices bolster sentiment in the bush.
Rural lender Rabobank's quarterly confidence survey, which questions 1000 primary producers across the nation, found that farmers started 2015 in high spirits following drought breaking rains in some regions at the start of the year.
"Good January rains over large parts of Qld and NSW saw the cattle market ignite, with prices across all categories lifting to record levels," Rabobank group executive for country banking Peter Knoblanche said.
"This saw a flurry of restocker activity, which has since waned with the lack of follow-up rains but prices have held up strongly."
The Eastern Young Cattle Indicator, a measure of beef prices based on 26 eastern saleyards, has waned in recent weeks but is still close to all-time highs.
At the same time, the $A has fallen from its 52-week high of US95 cents in July last year to about US77c, boosting the competitiveness of Australian farm exports.
The federal government has also won big concessions for agriculture in its free trade talks with China, Japan, and South Korea.
The Rabobank survey found farmer confidence at its highest level since March 2011.
Confidence improved in all states and across all commodities except for sugar, which is facing a slump in prices and a fight over how Australian sugar exports are marketed.
Almost half of the survey respondents said they expected conditions to improve in the coming 12 months and just 12pc expected a decline.
The strong boost to farmer sentiment comes as Australian-listed agribusinesses soar.
Crop protection group Nufarm has seen its shares surge 77pc to $7.16 in the past six months.
In the same period rural services group Elders is up 42pc and beef producer Australian Agricultural Company is up 18pc.
Rabobank state manager for SA James Robinson said commodity prices emerged as the biggest driver of SA farmer confidence.
"We have seen a big turnaround in confidence amongst the state's beef and sheep producers, with beef prices hitting record heights earlier this year and lamb prices trading at strong levels," Mr Robinson said.
"While seasonal conditions remain tough and many graziers are in a poor position from a feed point of view, they are offloading stock into a strong market."
SA farmers have strong investment intentions, with 93pc of those surveyed looking to increase or maintain their level of investment, up from 88pc.
"In general terms, broadacre farmers in SA have entered 2015 in a good position, demonstrated by farmers increasing their investment into on-farm capital as we have seen a record demand for equipment finance as they replace and upgrade plant and machinery," Mr Robinson said.
"The appetite is also there for purchasing more land which has been helped by interest rates remaining at low levels. And, with farmers paying back debt, their balance sheets are in a position to take advantage of opportunities as and when they arise."
Yorke Peninsula's Brenton Davey, Pine Point, is optimistic about the outlook for agriculture, particularly for cattle prices.
His optimism has led him to increase his cattle numbers in recent months.
"Looking into the future, I think prices are going to be even better again next year," he said.
"While cattle prices have eased back a little from where they were earlier in the year, I think they will rise again."
Mr Davey has increased his numbers to capitalise on strong commodity prices, and is now running about 200 breeders.
"I have about 30 breeders that will be first-time calving next year," he said.
On Monday morning Mr Davey sold 50 Angus-Murray Grey milk vealers, with his best line of steers making $2.16/kilogram.
"The week before was a better market and I averaged $2.24/kg," he said.
Mr Davey usually sells his cattle through the Dublin market, and sometimes sells through Mount Compass.