Farmer confidence has slumped in the wake of COVID-19’s impact on the economy and impacts from the recent drought. Key points from the survey, undertaken for us by Research First and completed by 1,725 farmers:
- General economic conditions (current): A net 28.6% percent of respondents consider current economic conditions to be bad, a 53 point reduction on January 2020’s survey when a net 24.6% consider them to be good.
- General economic conditions (expectations): A net 58.7% of respondents expect general economic conditions to worsen over the next 12 months, a 17 point reduction on January 2020’s survey when a next 41.5% expected them to worsen.
- Farm profitability (current): A net 46.7% of respondents reported making a profit currently, a 9 point reduction on January 2020’s survey when a net 55.8% reported making a profit.
- Farm profitability (expectations): A net 35.5% of respondents expect their profitability to worsen over the next 12 months, a 38 point reduction on January 2020’s survey when a net 2.7% expected it to improve.
- Farm production (expectations): A net 16.1% of respondents expect their production to increase over the next 12 months, a 4 point increase on January 2020’s survey when a net 12.5% expected it to increase.
- Farm spending (expectations): A net 12.8% of respondents expect their spending to reduce over the next 12 months, a 30 point decrease on January 2020’s survey when a net 17.3% expected it to increase.
- Farm debt (expectations): A net 24.8% of respondents expect their debt to reduce over the next 12 months, a 10 point decrease on January 2020’s survey when a net 34.4% expected it to reduce.
- Ability to recruit (experienced): A net 28.1% of respondents reported it having been harder to recruit skilled and motivated staff, a 13 point reduction on January 2020’s survey when a net 41.3% reported it having been harder.
- Greatest concerns (current): The three greatest concerns for farmers are the economic situation (chosen by 15.6% of respondents), regulation and compliance costs (15.3%), and farmgate and commodity prices (11.1%). This compares to January 2020’s survey when the top three concerns were regulation and compliance costs (20.2%), climate change policy & ETS (17.2%), and freshwater policy (10.7%).
- Highest government priorities (current): The three highest priorities farmers would like the government to address are the economy & business environment (36.8%), fiscal policy (12.1%), and supporting agriculture & exporters (10.3%). This compares to January 2020’s survey when the top three priorities were economy & business environment (23.4%), regulation and compliance costs (14.2%), and supporting agriculture & exporters (10.3%).
The next survey will be undertaken in January 2021.