Forum Archive Index - June 2003

["mvanv" <mvanv@xtra.co.nz>]

 

 

 

Farmers' Mood Improves
12/06/2003 07:14 AM - Reuters

A veil of gloom over New Zealand's important farming sector partially lifted in the past two months, helped by a halt in the kiwi dollar's rapid rise and solid late autumn production levels, according to the AC Nielsen/Rabobank Rural Confidence survey.

Overall confidence was still gloomy at negative 37 percent, but was better than the negative 62 percent recorded in the April survey.

"Most farmers now predict a stable 12 months ahead, although half still expect to earn less income and one-in-five plans to spend less on their business," said Rabobank Managing Director Bryan Inch.

Income of New Zealand farmers has been cut from a 2001 boom by a rise in New Zealand's dollar from record lows and weaker commodity prices.

Inch said after an indifferent season for most agricultural sectors, which account for about half of New Zealand's NZ$30 billion export earnings, many farmers were expecting a period of relative stability.

"The mild start to the winter and the relative stability of the New Zealand dollar, albeit at high levels, are both reducing uncertainty for the coming season," Inch said.

New Zealand's dollar on a trade-weighted basis was broadly unchanged in April and May, following a 20 percent gain in the previous 15 months.

Forty-seven percent of farmers surveyed predict their industry will remain steady in the coming year, up from 30 percent in the previous survey in February and March.

Half of the 1,000 farmers surveyed are braced for lower earnings in the coming year, an improvement on 67 percent in the last survey.

Attitudes to farm investment also improved. More than three-quarters of those surveyed said they would maintain or increase spending on land, stock or plant.