A recent survey of rural confidence by agricultural lender Rabobank revealed that farmers are feeling less confident for the year ahead.

Producer confidence plummeted to its lowest level in nine years as a combination of factors including dissatisfaction over the Federal Government's live export ban and anxiety over the carbon tax all led to the overall farmer sentiment.

The Rabobank Rural Confidence Survey is a quarterly survey across a wide range of commodities and geographical areas in Australia.

Half the farmers interviewed by Rabobank believed that the agricultural economy will be worse next year than this year. State manager of Rabobank Justin Harrison says confidence is down in all farm sectors.

"The results of the survey reflect concern about the high Australian dollar," Harrison said.

Other factors that contributed to the loss of confidence included global economic uncertainty, the high Australian dollar and anger over the exploration of coal seam gas and other mining activities that many believe to be a threat to agriculture.

Thirty-five percent of farmers expect conditions to worsen in the year ahead while only eighteen percent believe that the agricultural economy will improve by next year. The survey also revealed that fifty-two percent of farmers believe coal gas exploration is a threat to agriculture while only seven percent believe that it can be an opportunity for the industry.

Broadacre group AgForce CEO Robert Walker said that the survey showed how government has failed to recognize and support the agriculture industry.

"The Federal Government's kneejerk ban on Indonesian live cattle exports earlier this year showed little understanding of the value of this industry to Australia, and how damaging ill-conceived government policy can be on grass-roots producers," Walker said.

"With just the stroke of a pen a government minister slashed the yearly income for many northern cattle producers, so it is no wonder confidence is flagging."