On The Land
14 September, 2025
Rural farming confidence drops over input costs
QUEENSLAND rural confidence has dipped, with the state’s primary producers reporting concerns about the cost of inputs, according to the latest Rabobank Rural Confidence Survey.
Completed last month, the survey found high costs for inputs, such as fertiliser, ag chemicals, machinery, labour and fuel, along with concern about government intervention or policies were key factors driving a reduction in confidence in the state’s agricultural sector.
Overall, net Queensland rural confidence moved down to -2%, from 10% previously.
The survey found while the proportion of the state’s farmers with an optimistic view on the year ahead had remained stable in the latest quarter (at 24%), 26% now expected conditions to worsen (up from 14% last survey). Those expecting conditions to remain stable declined to 47% from 57%.
By region, the survey found confidence had declined almost across the board, with only producers in the south-west of the state posting a small improvement in sentiment.
And by commodity, sentiment was down among Queensland’s beef producers, at a net 14% (from 19%).
Confidence within the state’s sugar sector also declined, with 48% of cane growers surveyed expecting a deterioration in economic conditions in the 12 months ahead (up from 37% in the previous survey) and just 10% expecting conditions to improve.
Overall, of those Queensland producers surveyed, 44% were concerned about rising input costs, while 37% were worried about government intervention or policies.
On the other hand, good seasonal conditions and rising commodity prices were cited as positive factors for the year ahead, by 39 per cent and 37 per cent respectively.
Rabobank state manager for Queensland Polly Saraiva said there was a level of concern around rising input costs and the geopolitical tensions that may be contributing to cost increases and price volatility.
Primary producers across Australia nominated high input costs as the chief reason for diminished confidence.
Ms Saraiva said beef producers continued to be the most optimistic commodity sector in the state, despite confidence levels declining.
“The survey found while net confidence has eased slightly, over 80% of Queensland beef producers see the outlook for the year ahead improving or staying the same,” she said.
“Beef producers are buoyed by cattle prices that are continuing to edge higher, with cull cow prices leading the charge, supported by US demand for lean trim.
“And this demand could increase over the coming months due to the additional US tariffs imposed on Brazil’s imports into the United States, which would provide ongoing support for Australian cattle prices.”
Despite the dip in overall Queensland rural confidence, the survey found appetite for investment among the state’s producers continued to be on the rise – and remained the highest in the country.
Overall, 37% of Queensland producers surveyed were intending to increase their on-farm investment in the coming 12 months (up from 34% in the previous survey), while a further 54% were looking to maintain investment at current levels. Just 8% were looking to wind back their investment.
Overall, 67% of the state’s producers were planning to invest in on-farm infrastructure (such as fences, silos and yards), 39% in adopting new technologies and 35% in new plant or machinery.
The survey found a lift in the number of Queensland producers surveyed reporting they are looking to expand their businesses through property purchase, with 16% planning to acquire property in the year ahead (up from 13% last quarter).
Income expectations for the year ahead were marginally down in the Queensland agricultural sector.
Overall, 28% of producers surveyed in the state expect their gross farm income to rise over the 12 months ahead (down from 32% last survey), while 17% expect a weaker financial performance (unchanged from previously).
