A better-than expected harvest in Western Australia is leading many of the state’s farmers to feel more confident in the year ahead
Western Australian farmers have seen a significantly better harvest than expected, leading to increased confidence levels in the immediate future, according to the latest Rabobank Rural Confidence Survey.
After a very dry start to this year’s grain season, Rabobank WA state manager Steve Kelly says the west is closing in on what is forecast to be the third largest crop on record.
The survey also found that WA was also only one of two states in Australia to record an increase in net farmer sentiment in quarter four, with most of the country seeing a decrease.
Positive commodity prices are said to be the most significant driver of optimism among WA farmers in quarter four, cited by 31 per cent, while seasonal conditions and overseas markets were cause for optimism for 21 per cent and 19 per cent respectively.
“Canola prices have been at high levels, especially when considering oil bonuses,” Kelly says.
“Cattle prices have also been holding steady this year at a lot higher levels than last year, despite record cattle production being seen in Australia.
“Lamb prices have lifted and are significantly higher than they were seven months ago, when things were feeling dire.”
Kelly adds that this is providing some support for lamb producers, as many are reviewing mating numbers and altering enterprise mix, in response to the upcoming ending of the live export trade.
Of the various farm sectors in WA, confidence was highest across grain, beef and sheep producers, although around two thirds expect little change to the current agri economic conditions.
The state’s farmers also reported an increased desire to invest in their farm businesses, with 90 per cent saying they intend to either increase or maintain their investment levels in the 12 months ahead – up from 82 per cent in the previous quarter’s survey.
The percentage of those specifically planning to increase investment jumped to 23 per cent – up from 13 per cent previously.
In the year ahead, WA farmers are intending on investing most significantly in on-farm infrastructure, such as fences, silos and yards (55 per cent), new plant and machinery (40 per cent) and adopting new technologies (26 per cent).
Kelly says farmers had originally ‘backed off’ on their investment activity earlier in 2024, particularly in machinery and capital expenditure because of concerns about the season.
“It was only in October when hopes of a more promising harvest were realised, that they have reset and are ready to go again,” he says.
WA farmers also reported a strong interest in investing in property acquisition, recording the highest in the country at 23 per cent.