'Uncertain times' for farmers despite confidence boost

Rabobank chief executive Todd Charteris. Photo / Supplied

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Although it's great to see farmer confidence rise, there are still uncertainties out there for New Zealand's rural community says Todd Charteris.

Rabobank's chief executive spoke to The Country's Jamie Mackay about the bank's 2019 fourth-quarter Farmer Confidence Survey.

The latest survey – completed late last month – found the number of farmers expecting the rural economy to improve in the next 12 months increased to 21 per cent from eight per cent in the last quarter, while the number expecting the rural economy to worsen fell to 33 per cent from 41 per cent.

Although stronger commodity prices fueled the increase in confidence, it still remained at a net negative 12 per cent.

"I think there's still this underlying uncertainty that exists out there around some of the policy changes. I think it's important that we all consider those and work together to chart our way through these uncertain times" said Charteris.

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Two issues weighing on farmers' minds at the time of the latest survey were the announcement of the Government's Essential Freshwater Plan and new bank capital requirements said Charteris.

Dairy farmers recorded the biggest rise in confidence due to two lifts in forecast milk price payouts.

Sheep and beef farmers were also enjoying an increase in confidence which Charteris said was off the back of strong demand for animal protein and the influence of African swine fever in China.

However, horticulture recorded the strongest investment intent which extended a remarkable run in positivity for every quarter for the past seven years.