South Australian farmers have recorded the highest levels of confidence nationally following widespread winter rain, according to the latest Rabobank Rural Confidence Survey.

The survey has tracked farmer sentiment across Australia quarterly since 2001, this time finding rural communities in SA had the highest level of confidence in the nation, rising from -39 per cent last quarter to now sitting at eight per cent.

The shifting feelings among the communities was largely driven by timely winter and autumn rainfall, with SA recording its sixth-wettest winter on record overall and wettest since 1978.

Rabobank state manager for South Australia Peter Evans said there had been a notable shift in mood among rural SA communities.

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“Conversations are more upbeat and energised – this has been really clear at industry events across the state, including the recent Eyre Peninsula Field Days, where the optimism of local farmers was really evident,” Evans said. 

“This renewed enthusiasm is fostering greater strategic thinking, with producers looking beyond immediate operational pressures and considering longer-term opportunities.”

More than 26 per cent of SA farmers are now optimistic that conditions will improve over the next 12 months, up from 17 per cent from last quarter, while pessimism eased in the sector, with only 18 per cent expecting conditions to worsen in the year.

SA grain farmer confidence surged this quarter, with sentiment lifting from a low of net -71 per cent last survey to now sit at 10 per cent. Livestock producers are similarly upbeat with 36 per cent of SA producers planning on increasing livestock numbers over the next 12 months, up from 31 per cent last quarter. 

Sheep producers had the highest confidence in the state with a net index of 11 per cent.

Despite the rising positivity, there was a small lift in concerns around government policies among SA farmers following the Federal Budget.

More than 30 per cent of farmers remain worried about energy security including rising fuel costs and supply availability, while concerns about the fallout of war in the Middle East rose to 15 per cent.

“Overall though, it has been very pleasing to see seasonal conditions have aligned with the strength of animal protein markets,” Evans said. 

“This has given producers the capacity to realise cash flow gains with the improved terms of trade. Looking ahead, it is hoped the market fundamentals that have underpinned recent gains continue to enable producers to build extra resilience into their cash flows.

“In periods of stress, it’s difficult to take a longer-term view, so this intentional outlook reinforces that our farming industry is in a positive position and confident to put clear plans in place for next year.”