WA farmers most confident

WA farmers remain the most confident in the nation, according to the latest quarterly Rabobank Rural Confidence Survey, with 35 per cent expecting improvement in the agricultural economy in the coming 12 months.

This is the second consecutive quarter in which WA farmers have been the most positive in Australia.

A strengthening export focus and robust commodity prices, particularly for livestock, were key drivers of confidence in the State's rural sector.

Improved sentiment was reported around overseas markets on the back of positive news about free trade agreements.

Farmers reported an optimistic outlook on future farm incomes and robust investment intentions.

While WA farmer confidence has eased overall from the previous quarter, the latest survey - completed about a month ago - reported that 35 per cent of the State's farmers still expect conditions to improve in the coming year, down from 46 per cent previously, while 48 per cent of farmers hold a stable view (up from 43 per cent).

Fourteen per cent expect the agricultural economy to worsen, which is up from nine per cent previously.

A comprehensive monitor of outlook and sentiment in Australian rural industries, the Rabobank Rural Confidence Survey questions an average of 1000 primary producers across a range of commodities and geographical areas throughout Australia on a quarterly basis.

Of those WA farmers expecting an improvement in the agricultural economy in the year ahead, the results indicated overseas markets (cited by 54 per cent) and commodity prices (by 45 per cent) were the key drivers.

Rabobank WA manager Crawford Taylor said market access was a major topic of discussion throughout spring.

"Over the past quarter, there has been an extraordinary amount of discussion around improving market access for Australian agricultural products, particularly following FTAs with Japan, Korea and then China right around the time of the G20, which is great news for the industry as a whole and in particular for the livestock sector in WA," he said.

The survey results showed positive sentiment among mixed livestock and beef producers, which Mr Taylor said was driven mainly by rising prices and a positive export outlook.

"At the time of the survey, the beef price was in a good place, and there has also been strong indicators in a number of overseas markets, particularly around boxed beef exports to the US and a better year for live cattle, which has buoyed sentiment," he said.

Mr Taylor said the State's dairy farmers "were also having a good run, with shortage of supply and strong local market demand forcing local processors to secure supply".

Overall confidence eased for the State's grain growers, although the majority (70 per cent) maintained a stable outlook on the future agricultural economy.

"Grain prices have been fluctuating recently and leading into harvest, when the survey was taken, the price was easing, but since then prices have rebounded and the quality and yield of the crop at harvest has been reasonable," Mr Taylor said.

"Confidence levels eased in the eastern and northern Wheatbelt region, which can be attributed to poorer seasonal conditions."

Optimism among the State's sheep graziers moderated from previous highs, although with half reporting a stable outlook this quarter.

The positive WA rural sentiment flowed through into expectations of good individual farm business performance, with 91 per cent of WA farmers forecasting their business performance to improve or remain stable in the next 12 months, down only slightly from 92 per cent in the last survey.

Investment intentions also remained robust, with 27 per cent of WA farmers reporting a desire to increase investment in their business in the coming year (from 26 per cent in the last survey).

The survey showed 64 per cent expected to maintain the same level of investment, compared with 60 per cent previously.

"There are plenty of farmers who are looking to maintain investment inside the farm gate, particularly around productivity-enhancing improvements," Mr Taylor said.

"And we're seeing investment by high-profile investors in purchasing pre and post-farm gate assets, which is a positive for overall sentiment."

In a new question this survey, 49 per cent of WA farmers reported using a smartphone or tablet to access the internet in their business.

South Australian and WA farmers recorded the highest results in the nation of the use of this technology.

The most robust study of its type in Australia, the Rabobank Rural Confidence Survey has been conducted since 2000 by an independent research organisation.

The next results are scheduled for release in March next year.

_RESULTS AT A GLANCE _

·For the second consecutive quarter, WA farmers have reported the highest rural confidence in Australia.

·Confidence eased for grain growers, but remained positive for mixed farmers, beef and sheep producers and the local dairy sector.

·Positive sentiment has been driven by strong beef and sheep prices and an improved outlook in overseas markets.

·Expectations around future farm income and positive investment intentions remained robust.