SENTIMENT has lifted among SA farmers due to strong commodity prices and good seasonal conditions across much of the state, according to the recently-released quarterly Rabobank Rural Confidence Survey.
The survey, which questions an average of 1000 primary producers across a wide range of commodities and geographical areas throughout Australia on a quarterly basis, found SA farmer confidence had 'stabilised' after a significant softening at the end of 2021, with 25 per cent of those surveyed expecting agribusiness conditions to improve in the coming 12 months.
A further 51pc are expecting conditions to remain stable, while 20pc are concerned they will decline. This compares with 26pc of SA farmers who had a positive outlook last quarter and 15pc with a pessimistic view.
Rising commodity prices were cited by 91pc as the reason for their optimism, while 38pc credited good seasonal conditions for their positive view.
Rabobank SA regional manager Roger Matthews said the stabilised confidence levels were "understandable" given the current strong commodity prices and good seasonal conditions across much of SA.
But the ongoing impact of the state missing out on solid spring rainfall in grain-growing regions, such as the Mallee, had tempered confidence going into the new year.
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The latest survey found confidence within the state's beef sector remains strong with 68pc of beef producers expecting agribusiness conditions to improve or stay the same in the year ahead.
SA sheep producers are also upbeat, with 86pc of the sector expecting conditions to improve or remain the same.
"A strong sheep market, combined with a good season, has given sheep producers a very positive outlook," Mr Matthews said.
However the drier-than-usual summer in the South East will have impacted livestock producers, he said.
The state's graingrowers were less optimistic. While a combined 51pc expecting conditions to improve or remain the same in the coming 12 months, 41pc are anticipating agribusiness conditions will worsen.
Mr Matthews said the cost and availability of farm inputs was driving concern among graingrowers, with 76pc citing rising input prices for their negative outlook.
"We have already seen graingrowers making significant investments in inputs last November/December for the season ahead," he said.
"Growers are paying up front to ensure they can secure access for key inputs, particularly fertiliser."
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