UPDATE: Confidence in Australia’s farming sector has surged to 14%, a significant increase from last quarter’s neutral reading. This boost, revealed in the latest Rabobank Rural Confidence Survey released today, October 28, 2025, reflects farmers’ optimism fueled by robust commodity prices and improved seasonal conditions across the nation.
The survey indicates that over a third of farmers, accounting for 35%, expect business conditions to improve in the next year, up from 29% previously. Meanwhile, the percentage of those anticipating worsening conditions has dropped to 21% from 29%. Notably, 41% of farmers predict conditions will remain stable.
Confidence has risen in all Australian states, with Tasmania showcasing the highest levels of optimism at 34%, up from 23% last quarter. Marcel van Doremaele, Rabobank’s group executive for Country Banking Australia, attributes this positive sentiment to strong commodity prices, particularly in the livestock sector, and favorable seasonal conditions witnessed in many areas.
The survey highlights that sheep farmers now exhibit the highest confidence levels among producers, with net confidence doubling to 31%. Beef producers follow closely behind at 27%. However, cotton, grain, and sugarcane growers report more pessimistic outlooks, with negative sentiments outpacing positives in these sectors.
Despite the overall uplift, concerns remain prevalent regarding government policies, high input costs, and potential drought, affecting 39%, 37%, and 33% of farmers surveyed, respectively. The need for continuous rainfall remains a pressing issue, particularly in Victoria and South Australia, which are still recovering from rainfall deficits.
As farmers across the nation report increased confidence, they are also looking to invest more in their operations. The survey found that 29% of farmers plan to increase on-farm investments over the next year, continuing a positive trend from previous quarters. Additionally, 41% of respondents expect their gross farm income to rise, compared to 33% last quarter.
Looking ahead, farmers are eager to see how seasonal conditions and market dynamics will unfold. With a potential record winter crop harvest on the horizon, particularly in Western Australia, optimism continues to build in the agricultural community.
The Rabobank Rural Confidence Survey is a comprehensive quarterly assessment of farmer sentiment across Australia, providing critical insights into the agricultural economy. The next results are set to be released in December 2025.
Stay tuned for ongoing updates on this developing story as farmers respond to these dynamic market conditions and work to secure their livelihoods.
