For the first time in two years farmer confidence is in the negative, led by dairy farmers concerned about Government policies says Hayley Gourley.

Rabobank's GM Country Banking spoke to The Country's Jamie Mackay about the Rural Confidence Survey which is due out later this week.

Gourley says the dip in dairy confidence is due not only to the Government but also "expectations of the broader agricultural economy," such as milk prices and poor GDT results.

Listen below:

One surprise in the report was a drop in confidence in the normally buoyant horticulture sector. Gourley puts this down again to changes in Government policies and concerns about the broader economy, rather than farmers' confidence within their own business which remains high.

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"What's been interesting with this survey is we normally see some spring optimism and this time we're not seeing that quite so much."

It's not all bad news however, with sheep and beef farmers remaining in "positive territory," says Gourley.

Also in today's interview: Hayley Gourley looks at prospects for the next global dairy trade event and discusses whether farmers will be able to borrow money cheaper in the coming year.