Rural
26 March, 2026
Farmer confidence collapses
Farmer confidence across Southern New South Wales has fallen sharply, with dry conditions and rising costs weighing on outlooks heading into 2026.
Farmer confidence across Southern New South Wales has fallen sharply, with dry conditions and rising costs weighing on outlooks heading into 2026.
The latest Rabobank Rural Confidence Survey shows sentiment dropped to a net reading of -20 per cent in the first quarter of the year, down from -3 per cent in the previous quarter.
The result reflects increasing concern among local producers, after a dry summer and ongoing cost pressures.
Drought was identified as the key issue, with many farmers reporting reduced rainfall through the summer months which impacted feed, water and crop planning.
At the same time, input costs — including fuel and fertiliser — remain high, with further uncertainty linked to global tensions expected to push prices even higher.
Rabobank NSW state manager Toby Mendl said the situation had likely worsened since the survey was conducted.
“The conflict in the Middle East is further compounding farmer concerns about the cost of doing business,” he said.
“Producers were already concerned about rising input costs, but now face more price pressure and volatility.”
Despite the downturn, the outlook is not entirely negative.
About 41 per cent of farmers expect conditions to remain stable over the next 12 months, while 39 per cent believe conditions will worsen. Just 19 per cent expect improvement.
Recent rainfall across parts of southern NSW has provided some relief, with water flowing into dams and pastures beginning to recover.
However, it has not been enough to fully offset earlier dry conditions, and many farmers are now watching closely for follow-up rain.
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