After rallying earlier in the year, NSW farmer confidence has recorded a downturn, with investment intentions weakening slightly.

The survey found the state’s farmers were overall feeling less confident about their prospects for the year ahead – with concerns about high input prices plus government policies and intervention top of mind.

Producers had mixed feelings about seasonal conditions, though more recent sustained rainfall across the state will have buoyed sentiment, particularly among livestock producers anticipating good spring pasture growth ahead.

The latest survey found net NSW rural confidence had fallen to -8 per cent from -1 per cent in the previous survey. This sees NSW farmers with the lowest level of confidence in the country.

Rabobank State Manager for NSW Toby Mendl said that many farmers – especially in the south – had spent “the depths of winter awaiting decent rain” and this had negatively impacted farmer confidence during the survey period.

“Fortunately, weather systems have since moved through southern areas delivering beneficial rain and anecdotally there has been a subsequent lift in farmers’ outlooks,” Mr Mendl said.

“The southern half of the state received below-average rainfall in spring last year, which carried through to a relatively poor autumn, driving down producer sentiment.”

By commodity, the Rabobank survey found NSW sheep producers reported a dip in sentiment (with net confidence falling from 4 per cent to -9 per cent).

“Despite producers receiving record-breaking prices for lambs and sheep, the survey found concerns about dry weather conditions, higher costs and government intervention were weighing on their minds,” Mr Mendl said.

NSW beef producers have, however, reported a gain in confidence this survey, with net sentiment at 13 per cent (up from 5 per cent previously).

“Cattle prices continue to climb with cull cow prices leading the charge, supported by US demand for lean trim,” Mr Mendl said. “This demand could increase in the coming months due to the additional tariffs imposed on Brazil, which would provide ongoing support for Australian cattle prices,” he concluded.

Meanwhile, the survey found sentiment continued to decline in the state’s grains sector, with a net reading of -25 per cent (from -4 per cent) and weakened in cotton at -33 per cent (was -20 per cent).