Farmer confidence soars to decade high amid improved economic outlook
Farmer perceptions of current economic conditions have risen to their highest level in almost a decade.
OPINION: Two reports out last week confirm that the worst may be over for pastoral farmers.
The days of rampant on-farm inflation and depressed prices – especially for sheep farmers - may be a thing of the past. For red meat farmers, prices for farm inputs fell by 0.6% in the year to March 2025 after a 30% increase in prices since 2020. Deflation is an infrequent occurrence for farm input prices and a welcome respite for red meat farmers following a 30% increase in prices since 2020.
Beef + Lamb NZ’s annual on-farm inflation report puts this down to mostly due to lower interest rates, plus modest decreases in input prices such as weed and pest control, fuel and fertiliser, lime, and seeds.
A second report- DairyNZ’s View from the Cowshed – reveals that dairy farmers are feeling proud and increasingly positive about the future of their sector.
Most dairy farmers indicated they feel the outlook will remain positive for the sector over the next three years, with less farmers feeling that things will decline (21.1%) than those who feel it will stay the same (51.8%) or improve (27.0%).
The findings paint a picture of a sector that is passionate, resilient, and progressive.
While dairy farmers are enjoying record farmgate milk prices, the same cannot be said about sheep farmers. However, lamb and beef prices are on the rise. Farm-gate prices remain strong, and the outlook is relatively good.
This is a positive change from recent years, when high on-farm inflation eroded profitability. There’s also good news on interest rates. Farm lending rates are expected to ease further through 2025 and remain stable into 2026, providing further relief on debt servicing costs.
However, challenges remain – regulatory compliance impacts, farm conversions especially sheep and beef properties into forestry and the risk of global shocks.
Having said that, farmers are out of the woods and in a better space than they were a few years ago.
Overall, farmers have grounds for optimism and that augers well for the primary sector and New Zealand as a whole.
Federated Farmers is vowing to keep the big banks accountable for their actions and to continue pushing for meaningful change in the rural lending sector.
Farmer perceptions of current economic conditions have risen to their highest level in almost a decade.
Two butcheries have claimed victory at the 100% New Zealand Bacon & Ham Awards for 2025.
A Taupiri farming company has been convicted and fined $52,500 in the Hamilton District Court for the unlawful discharge of dairy effluent into the environment.
The Climate Change Commission’s 2025 emissions reduction monitoring report reveals steady progress on the reduction of New Zealand’s climate pollution.
Another milestone has been reached in the fight against Mycoplasma bovis with the compensation assistance service being wound up after helping more than 1300 farmers.
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