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Agribusiness may be in for a busy year as confidence among the nation’s farmers rises through the first quarter of 2025.
As revealed in Rabobank’s Rural Confidence Survey, 24 per cent of farmers are anticipating conditions in the agricultural economy to improve in the next 12 months, up from 18 per cent from last quarter.
Net national rural confidence is now at 5 per cent, up from negative 9 per cent in the December quarter.
This has resulted in a major boost to investment appetite, with 89 per cent planning to increase or maintain their level of on-farm investment in the coming year.
Rabobank group executive for Country Banking Australia, Marcel van Doremaele, said: “Encouraging market signals have pushed gross farm income expectations upwards to approach a three-year high this quarter and farmers’ confidence to invest back into their businesses to improve productivity and efficiency has strengthened.”
Heavy rains in the opening of 2025 have played into this confidence, said van Doremaele. This will “kickstart the winter cropping program,” some much-needed respite after dry conditions in 2024.
“With sub-soil moisture depleted after prolonged dry weather in parts of southern Australia in 2024, farmers in these regions are paying close attention to the rainfall outlook and hoping for a substantial autumn break to set up crops and bridge the feed gap, followed by better seasonal conditions throughout 2025,” he said.
Now, 38 per cent of farmers plan to invest in on-farm infrastructure, such as fences, siloes and yards. A third expect to update plant and machinery.
Meanwhile, 14 per cent are looking to purchase new property, up from 12 per cent in the previous quarter.
Western Australia led the charge with around 20 per cent of farmers looking to purchase real estate.
“Although confidence was up across the board except for Western Australia where it was essentially stable, the largest surges in positivity were in South Australia and Tasmania, where farmers really are looking for a turnaround in seasonal conditions after a challenging previous 12 months,” said van Doremaele.
“Farmers in Western Australia and NSW fared better last year and wrapped up 2024 with rock-solid harvests and, in some cases, well-above average results, but now they are also in the waiting game to see how the autumn break will set them up for the coming season.”
Despite the good news, there are still concerns that “market volatility” could persist in the wake of US President Donald Trump’s trade tariffs.
The impact on agriculture in Australia is still unknown but could stand to diminish some of the confidence built over the quarter.
[Related: Trump’s tariff trouble could mean ‘short lived’ business development]
