Recent rain is likely to have boosted the confidence of Queensland’s rural sector further, after local primary producers were shown to be the most optimistic in the country in a recent survey.
Rabobank acting Queensland manager Brad James said the state’s producers bucked the national trend in the latest quarterly Rural Confidence Survey.
Mr James said the survey showed Queensland rural sentiment had edged up to now hover around “neutral” and was tracking well above the levels reported in the latter half of 2022 and throughout 2023.
“Recent significant rainfall since the survey was in the field is likely to have boosted rural sector confidence further,” he said.
Mr James said the survey, completed last month, found while the proportion of the state’s producers that expected the agricultural economy to improve remained relatively steady, a smaller number expected conditions to worsen (19 percent, down from 22 percent).
He said the survey found Queensland producers were most bullish about seasonal conditions – nominated as a cause for optimism by 43 percent (up from 37 percent) – and rising commodity prices (32 percent, up from 30 percent).
“Queensland and WA were the only states to record a lift in rural confidence this quarter, with sentiment taking a hit in all other states.”
He said across the regions the survey found confidence picked everywhere, except the Darling Downs where it posted a small drop-off.
Mr James said producers were still waiting to see what sort of summer would unfold across the state.
“Traditionally producers are looking for a break in the season in late spring, and dry seasonal conditions across much of the state this spring will have weighed on producers’ minds,” he said.
“The early signs are good for a wet summer, with promising forecasts, which will be giving producers hope for the coming months.
“In the latter part of November – after the survey’s completion – there was significant rain across Queensland, to the point that the month of November had average to above-average rainfall for most of the state.”
Mr James said producers were holding concerns about a number of geopolitical situations.
“Many Queensland agricultural products – including sugar, grain and beef – are destined for international markets,” he said.
“Producers are keenly aware that political unrest in overseas markets can have direct impacts on local prices and access to farm inputs.”
