Farmer confidence in New Zealand has risen to its highest level in over a decade, rebounding from record lows in recent years, according to the latest Federated Farmers' Farm Confidence Survey.
The results show falling interest rates, rising incomes and more favourable farming rules have all played a major role in that improvement.
Federated Farmers president Wayne Langford said: "I have definitely noticed a significant shift in the mood of rural New Zealand. Farmers are feeling a lot more positive."
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He added it had been a tough few years, with falling incomes, rising interest rates and unpaid bills starting to pile up on the kitchen bench.
"At the same time, we have also been struggling with an incredibly challenging regulatory environment and farming rules that haven't always been practical, affordable or fair.
"These survey results paint a clear picture of a sector finally able to breathe a sigh of relief as some of that weight is lifted."
Farmer confidence
Confidence in general economic conditions has surged from -66% in July 2024 to a net positive score of 2%.
This marks the largest one-off improvement since the question was introduced in 2016.
Meanwhile, a net 23% of farmers now expect better economic conditions over the next year – the highest confidence level since January 2014.
There has also been a sharp lift in profitability, with 54% of farmers now reporting making a profit – double the number in the last survey six months ago.
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Mr Langford added it was important to note that, despite confidence being at its highest point in more than a decade, it was still only just in the positive.
"We have come a long way, but there is a long way to go yet. Federated Farmers will keep pushing hard to cut costs out of farmers' businesses and reduce some of that regulatory burden."
The survey results show regulation and compliance costs remains the greatest concern for farmers, followed by interest rates and banks, and input costs.
Mr Langford added a lot of farmer confidence came down to ‘what is coming into our bank account'.
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The survey also showed farmers' highest priorities for the Government were the economy and business environment, fiscal policy, and reducing regulatory burdens.
