Report

Mid-season Farm Confidence Survey 

This report summarises the January 2023 Federated Farmers’ New-Season Farm Confidence survey results. The survey is undertaken twice a year (January and July); this is the 28th iteration.

Key Messages

The January 2023 survey saw a further sharp downturn in farmer confidence to hit a new record low since the survey began in July 2009. The result was even worse than July 2022, which held the previous record low. 
Key points follow: 

  • General economic conditions (current): A net 65.2% of respondents consider current economic conditions to be bad, 17.4 points worse than July 2022 when a net 47.8% considered conditions to be bad.
  • General economic conditions (expectations): A net 81.8% of respondents expect general economic conditions to deteriorate over the next 12 months, 0.9 points worse than the July 2022 survey when a net 80.9% expected conditions to deteriorate.
  • Farm profitability (current): A net 28.4% of respondents reported making a profit currently, down 26.7 points on the July 2022 survey when a net 55.1% reported making a profit.
  • Farm profitability (expectations): A net 67.1% of respondents expect their profitability to decline over the next 12 months, 14.0 points worse than the July 2022 survey when a net 53.1% expected it to decline.
  • Farm production (expectations): A net 5.4% of respondents expect their production to decline over the next 12 months, 4.9 points worse than the July 2022 survey when a net 0.5% expected it to decline.
  • Farm spending (expectations): A net 24.1% of respondents expect their spending to increase over the next 12 months, down 30.5 points on the July 2022 survey when a net 54.6% expected their spending to increase.
  • Farm debt (expectations): A net 3.7% of respondents expect their debt to increase over the next 12 months, up 19.0 points on the July 2022 survey when a net 15.3% expected their debt to reduce.
  • Ability to recruit (experienced): A net 45.7% of respondents reported it has been harder to recruit skilled and motivated staff over the past six months, up 1.4 points on the July 2022 survey when a net 44.3% reported it had been harder.
  • Greatest concerns (current): The four greatest concerns for farmers were Climate Change Policy & ETS; Debt, Interest, Banks; Regulation & Compliance Costs; and Input Costs.
  • Highest government priorities: The four highest priorities farmers want the Government to address were Fiscal Policy; Economy & Business Environment; Regulation & Compliance Costs; and Supporting Agriculture & Exporters.
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