Rabobank's latest farmer confidence survey shows that belief in the agri economy, over the coming 12 months, is at its lowest reading since the tail end of the dairy downturn in 2015-16.

Rabobank's GM Country Banking Hayley Gourley caught up with The Country's Jamie Mackay for a preview of the bank's farmer confidence survey and the reasons behind the low result.

Even though "we are in a better space," from a market pricing perspective, that doesn't necessarily result in confidence, which often "does hang in the balance," says Gourley.

"A lot of that is due to the other external factors impacting the industry, particularly the M. bovis outbreak."

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Interestingly, despite the spectre of Mycoplasma bovis, dairy confidence has gone up. Gourley says this is because the survey was conducted just after the announcement of a predicted $7 milk price payout from Fonterra.

"Undoubtedly that was fresh in people's minds and is certainly reflected in dairy farmer confidence."

Sheep and beef confidence has dropped which Gourley says is not surprising, as these sectors support the dairy industry and are potentially more vulnerable around some of the implications of the Mycoplasma bovis eradication decision.

"People like graziers, calf rearers, bull breeders are still uncertain about the impacts it will have on their farming systems and businesses."

Also in today's interview: Hayley Gourley takes a look at lamb and horticulture and the impact of Government intervention on farmer confidence.

Listen below: