Rural Confidence Lower - Rabobank21 December 2012
AUSTRALIA - A survey for the last quarter indicates Australian farming sentiment has deteriorated.
Producers' forecast for 2013 are pessimistic with 35 per cent of farmers expecting conditions to worsen – up from 31 per cent from the previous survey, reports Meat and Livestock Australia.
The dry weather conditions underpinned the lack of confidence during the quarter, with grain producers in Western Australi particularly negative due to crop downgrades. Commodity prices, the high A$, input costs and uncertainties in overseas markets were also key contributors to the weaker survey results.
The dairy sector was the most optimistic industry, due to strengthening global fundamentals, as production growth slows in the European Union and United States. However, sentiment for both cattle and sheep farmers were the most pessimistic, a reflection of the impact of the worsening season on both prices and pastures.