Global rural lender Rabobank Group said on Monday that business confidence among Australian farmers soared to a record level in August as commodity prices saw marked improvement with farm outlook further buoyed by the arrival of winter rains in most states.

Polling some 1300 farmers across the nation, the rural bank found that 37 percent of those queried were looking forward for better conditions over the next 12 months, improving by 29 percent from May and attaining the highest level of confidence so far since March 2008.

The Rabobank survey showed that 50 percent of those polled declared that their confidence was anchored on seasonal conditions and higher commodity prices, largely caused by the severe drought that hit Russia.

The study added that downgrades seen on European and Canadian produces fuelled high prices for wheat in July and its eventual settling in the month after failed to dampen the confidence gained by Australian growers.

Peter Knoblanche, Rabobank general manager for Australia, said that global grain prices should remain on its current level for the rest of the year as he stressed that "while this rally in prices has cooled, favourable weather conditions on the east coast of Australia have put Australia in the box seat."

Rabobank said that Australian farmers are set to produce 23 million tonnes of wheat and export 15 million of those this year leading to some 41 percent of those polled expressing confidence that their incomes would jump for the next 12 months as against to the 34 percent posted in May.

Also, the survey showed that consistent rains across Australia's agricultural regions boosted the confidence of Victorian, Western Australian and South Australian farmers while some market issues on its beef industry held back the confidence levels of Queensland farmers.

Queensland farmers, specifically the dairy farmers were hit by lower prices, comprised most of the 13 percent of those surveyed who declared that the market would only get worse though the numbers were down from the 23 percent registered in May.