On The Land
25 September, 2026
Producer confidence picking up
SENTIMENT among Queensland’s primary producers has staged a turnaround, with confidence beginning to tick up in the latest quarter, according to the latest Rabobank Rural Confidence Survey.
SENTIMENT among Queensland’s primary producers has staged a turnaround, with confidence beginning to tick up in the latest quarter, according to the latest Rabobank Rural Confidence Survey.
Released last week, the survey showed that, overall, more of the state’s producers were now reporting a more stable outlook for agricultural economic conditions for the 12 months ahead.
The quarter three survey found Queensland rural confidence had risen to a net reading of -37% (from -54% in the previous quarter).
The recovery was primarily driven by the reduced proportion of Queensland producers expecting agricultural economic conditions to decline over the next 12 months – 45%, down from 61% with that view last survey.
Those expecting conditions to remain relatively stable increased to 44%, from 29% previously, while 8% expected conditions to improve, unchanged from last quarter.
High input costs remain the most commonly-cited concern, nominated by 57% of Queensland agricultural producers, while concern about government intervention and policies rose to 43%, from 27% in the last survey.
Rabobank state manager for Queensland, Polly Saraiva, said while confidence among Queensland producers had improved, it remained a “story of two halves”, with strong seasonal conditions across parts of the north of the state supporting an optimistic outlook, contrasted by ongoing seasonal challenges in many southern regions that were weighing on producers.
Ms Saraiva said the survey indicated producer sentiment had begun to stabilise in the state after a particularly challenging second quarter.
“Concerns about higher costs for farm inputs – linked to Strait of Hormuz disruptions – and dry seasonal conditions in parts of the state had particularly impacted sector confidence last quarter,” she said.
“The Q2 survey had seen Queensland producer confidence decline to the lowest point since the survey’s tracking began
in 2001.
“While confidence remains subdued this quarter, the latest results point to a considerable easing in the level of pessimism across Queensland’s agricultural sector.
“Last quarter, more than six in 10 Queensland producers expected conditions to deteriorate. That proportion has now fallen to fewer than half, while a much larger group believes conditions will remain broadly stable.
“This is not yet a return to widespread optimism, but it does suggest Queensland producers are seeing greater stability in their operating outlook and are looking beyond some of the immediate pressures which weighed heavily on confidence last quarter.”
That said, high input costs and government policy continued to be major concerns for Queensland producers, Ms Saraiva said, with producers appearing to be particularly worried about uncertainty surrounding regulatory requirements.
Livestock markets continued to provide a positive driver of confidence, she said, with cattle markets remaining particularly resilient.
The survey found 43% of the state’s cattle producers were anticipating good prices would continue into the year ahead.
Confidence among the state’s sugar cane growers edged up to net -69% from -85% last quarter. The survey found a quarter of Queensland cane growers reported they were optimistic about rising commodity prices.
Ms Saraiva said while market conditions remained variable across different commodities, there was clearly greater confidence among producers in the survey that prices may provide some support to their farm businesses.
This survey, 29% of Queensland primary producers reported they were planning to increase spending on their businesses in the coming 12 months, up from 17% last survey.
Planned expenditure included on-farm infrastructure (for 53%, up from 49% last survey) and adopting new technologies (26% from 27%).
Investment in both irrigation/water infrastructure and new plant/machinery were priorities for 25% and 23% of Queensland producers, respectively.
“While investment intentions remain largely steady, there continues to be interest in agricultural property purchase among producers looking to expand when suitable opportunities arise,” Ms Saraiva said.
The improved sentiment was also reflected in income projections. A total of 44% of the state’s farmers surveyed expected their income to remain the same in the coming 12 months (up from 39% with that expectation last quarter), while 20% expected higher incomes (up from 14% previously).
