"Sheep and beef farmer confidence dropped from +53 per cent last quarter to +22 per cent in this survey," she said. "Dairy farmer confidence also declined, down from +58 per cent last quarter to +50 per cent this survey."
The survey found government policies (46 per cent) and falling commodity prices (42 per cent) were the key reasons cited by farmers who expected the performance of agricultural economy to worsen in the coming 12 months.
"The prospect of increased government intervention within the farm-gate appears to be a contributor to the dip in farmer confidence."
While farmer concerns about government policies and lower commodity prices may have contributed to lower confidence levels, the survey indicated farmers were largely optimistic about the agricultural economy in the year ahead.
The survey also found farmers' expectations for their own farm business performance fell from last quarter, but remained strong.
The net reading for farmers' confidence in their own business performance dropped to +44 per cent, back marginally from the +47 per cent last survey.
A total of 51 per cent were expecting an improvement in the performance of their own farm business in the next 12 months (down from 55 per cent with that view in the previous survey) while 7per cent were expecting it to worsen (down from 8per cent).
Dairy farmers remain positive about the outlook for their own businesses registering a net reading of +57 per cent on this measure (back from +61 per cent), while horticulturists were more optimistic than last quarter about their own businesses climbing to a net reading of +51 per cent (from +38).
Farmer concerns
* Net rural confidence remains at elevated levels, but has fallen from the record high of last quarter.
* Of farmers expecting the agricultural economy to worsen, nearly half cited concern about government policies as a key driver of negative sentiment.
* Farmers' expectations of their own farm business performance is also marginally down, but still strong.
