Report

New Season Farm Confidence Survey - July 2021

This report summarises the July 2021 Federated Farmers’ Mid-Season Farm Confidence survey results. The survey is undertaken twice a year (January and July); this study is the 25th iteration. The survey was completed for Federated Farmers by Research First, New Zealand’s leading agricultural market research company.

The July 2021 survey observed an upturn in farmer confidence returning to Jan-uary 2019 levels. This result was a turnaround from July 2020 that had revealed the lowest level of farm confidence since the survey began in 2009. Key points follow: 

  • General economic conditions (current): A net 17.9% per cent of respondents consider current economic conditions to be good, a 12.4-point improvement from January 2021 and a 46-point increase on July 2020 when a net 28.6% considered conditions to be bad.
  • General economic conditions (expectations): A net 39.0% of respondents expect general economic conditions to worsen over the next 12 months, a 5-point improvement on the January 2021 survey when a next 43.8%expected them to worsen.
  • Farm profitability (current): A net 55.6% of respondents reported making a profit currently, a 6.2-point increase on the January 2021 survey when a net 49.3% reported making a profit.
  • Farm profitability (expectations): A net 4.4% of respondents expect their profitability to improve over the next 12 months, a 23-point increase on the January 2021 survey when a net 18.3% expected it to decline.
  • Farm production (expectations): A net 15.3% of respondents expect their production to increase over the next 12 months, a 1.7-point increase on the January 2021 survey when a net 13.6% expected it to increase.
  • Farm spending (expectations): A net 32.6% of respondents expect their spending to increase over the next 12 months, a 21-point increase on the January 2021 survey when a net 11.3% expected it to increase.
  • Farm debt (expectations): A net 29.3% of respondents expect their debt to reduce over the next 12 months, a 1.0-point increase on the January 2021 survey when a net 28.2% expected it to reduce.
  • Ability to recruit (experienced): A net 48.8% of respondents reported it has been harder to recruit skilled and motivated staff, a 13-point increase on the January 2021 survey when a net 35.8% reported it has been harder.
 
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