Most of the nation's farmers have doubts over the progress of agribusiness in the country; losing confidence as commodity prices dropped. Quarterly survey conducted by Rabobank Australia showed that Australian farmers have expressed worries on falling commodity prices.

The May survey, with about 1,200 respondents, noted that farmers expressed stifled sentiment on deteriorating prices in some commodities even when favorable rural conditions had boosted optimism among farmers in the Eastern states.

The survey recorded that twenty-nine per cent expected conditions to improve over the next 12 months. In the previous quarter, 30 per cent had the same expectation.

Almost a quarter of the farmer respondents thought conditions would deteriorate. The figures increased from 19 per cent in the previous quarter.

Among those who are expecting that improvement in conditions will likely happen over the next year, 62 per cent cited seasonal conditions as a major contributor. Among farmers who said that conditions would deteriorate, 56 per cent of these farmers nominated commodity prices to be the main concern. Most of them were grain and mixed farm operators.

"Confidence had leveled," said Rabobank general manager of rural Australia Peter Knoblanche.

"Favorable Autumn rain across eastern Australia has topped up sub-soil moisture profiles and resulted in the best winter crop-planting conditions in nearly a decade in many regions," Mr. Knoblanche said.

"Other things being equal, we would have expected very buoyant confidence results this quarter, but unfortunately grain prices are depressed and the recent locust plague across southern New South Wales, Victoria and parts of South Australia has caused some crop damage," he added.

Farmer confidence was strongest in Victoria, New South Wales and Tasmania, attributed to the solid autumn rainfall and a positive start to the winter season.

In Queensland, however, confidence among farmers had fallen mainly as a result of lower sugar prices, while Western Australia and South Australia were affected by low wheat prices and a late start to the season in some regions.

The survey noted that confidence was highest among dairy producers and negative in the wheat, grains and sugar industries.

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