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http://www.news.com.au/mercury/story/0,22884,23464956-5007221,00.html
Farm drought gloom looms
April 01, 2008 12:00am
THE drought has hit the confidence of Tasmanian farmers, who are less certain about their prospects than their interstate colleagues.
A rural survey reveals confidence in Tasmania has turned negative, with pessimists outnumbering optimists. More than half of mainland farmers felt confident about their future after good summer rains and soaring commodity prices, according to the latest Rabobank Rural Confidence Survey. But drought and increasing prices had dampened the confidence of Tasmanian primary producers, Rabobank’s rural general manager Peter Knoblanche said. The survey also found that 39 per cent of primary producers expected conditions to worsen in the next 12 months compared with 31 per cent who expected improvement. Increased costs of fertiliser and electricity had dampened confidence, as well as the continuing dry conditions. The survey was taken before last week’s rains.
Tasmanian Farmers and Graziers Association president Roger Swain said the rains had been “promising” but must be followed up for a major jump in optimism.
Despite their gloomy outlook, 37 per cent of primary producers expected to lift investment in their enterprises.
Thirty-three per cent expected their gross farm income to improve in the next 12 months thanks to improving commodity prices.
Rabobank senior manager for Launceston Greg Bott said southern and central regions of the state had been particularly dry.
“The Midlands have been long-term dry and are particularly in need of an early winter break,” he said.
“If it had not been for strong milk prices and a healthy dairy industry the state’s weakened confidence result may have been far worse.”
The survey also showed climate change was a major concern to farmers.
Some 54 per cent were concerned to some degree while 13 per cent were “very concerned”.
Mr Swain said farmers’ views on climate change were a mixed bag.
(continued)
– with AAP
