Queensland rural sector confidence is showing some early signs of recovery, with sentiment edging up in the latest quarterly survey of farmers. However, the state’s producers are still the most negative in the country, with the sector facing continuing uncertainty.
After a significant decline last quarter – off the back of damaging floods in North West Queensland and the dry season in the south of the state – sentiment has improved slightly, but remains well down in subdued territory (at a net reading of -15 per cent), the latest Rabobank Rural Confidence Survey has found.
The survey, completed last month, found a decline in the number of producers in the state with a negative outlook on the year ahead – at 34 per cent, down from 42 per cent last quarter. Those expecting an improvement in Queensland’s agricultural economy in the coming 12 months also climbed slightly – up to 19 per cent, from 14 per cent previously. A total of 37 per cent were anticipating conditions to remain the same.
Rabobank regional manager for North Queensland and the Northern Territory Trent McIndoe said parts of the state had received decent rainfall, although there were a lot of cropping areas, in particular, which were starting to reassess their planting programs because of lack of rain.
“There have been substantial flows through the Channel Country as a result of the flood event in North West Queensland and, towards the eastern side of the region, there have also been reports of some decent rainfall,” he said. “There are a number of cattle producers out that way who would be feeling reasonably confident heading into winter.
“There has also been some follow-up rain in North Queensland over the last quarter and graziers are beginning the long recovery from February’s flooding.”
The survey showed confidence levels improving across all surveyed regions in Queensland, however the Channel Country was the only region which reached positive territory (with more farmers optimistic than pessimistic), with 33 per cent of its surveyed producers confident that this year will be better than last – up from 19 per cent in the previous survey.
North Queensland producer sentiment remained steady, but subdued, with 34 per cent of surveyed producers from the region expecting worsening conditions ahead (a slight improvement on 29 per last quarter) and 19 per cent expecting an improvement (up from 12 per cent).
“For the most part, graziers who were devastated by the floods earlier this year are working through a rebuilding phase,” Mr McIndoe said.
“They have got more clarity now on what the losses have been, what the damage to infrastructure will cost to fix and how long it will all take. There has also been a lot
