Farmer confidence in New Zealand has surged to its highest level in over a decade, rebounding sharply from record lows in recent years, according to Federated Farmers’ latest Farm Confidence Survey.

Falling interest rates, rising farm incomes, and a shift toward more favourable regulations have played a major role in the turnaround.

Federated Farmers President Wayne Langford said he had noticed a significant shift in mood across rural New Zealand.

“The last few years have been bloody tough for a lot of our farming families, with falling incomes, rising interest rates, and unpaid bills piling up on the kitchen bench,” Langford said.

“At the same time, we’ve also been struggling with an incredibly challenging regulatory environment and farming rules that haven’t always been practical, affordable, or fair.

“These survey results paint a clear picture of a sector finally able to breathe a sigh of relief as some of that weight is lifted.”

The January 2025 survey revealed a sharp increase in farmer confidence:
• General economic confidence: Farmers’ confidence in current economic conditions jumped from -66% in July 2024 to a net positive of 2%—the largest single improvement since the question was introduced in 2016.
• Future economic expectations: A net 23% of farmers now anticipate better conditions over the next year—the highest confidence level since January 2014.
• Farm profitability: 54% of farmers now report making a profit, double the number from six months ago. The profitability score has risen by 60 points, marking the strongest turnaround since July 2022.
• Production expectations: A net 16% of farmers expect production to increase, extending a positive trend for the third consecutive period—something not seen since 2016/17.

Langford welcomed the results but cautioned that confidence was still only just in positive territory.

“It’s been a remarkable recovery in farmer confidence over a short period of time, but I’m very conscious that we were coming off an extremely low base.

“We’ve come a long way, but there’s still a long way to go. Federated Farmers will keep pushing hard to cut costs out of farmers’ businesses and reduce some of that regulatory burden.”

Despite the surge in confidence, farmers remain concerned about regulation and compliance costs, which ranked as the top issue facing the sector.

Interest rates and banking issues were also flagged as ongoing challenges. Langford said Federated Farmers fought hard for a banking inquiry because of the significant financial pressure on farmers.

“Interest payments are a huge cost for most farming businesses, and farmers have been under massive pressure from their banks in recent years.

“We want to see the Government take a much closer look at our banking system and whether farmers are getting a fair deal from their lenders.”

Farmers’ highest priorities for Government action include strengthening the economy, improving the business environment, and reducing regulatory burdens.

Langford said the Government had made a strong start in cutting red tape for farmers but still had work to do.

“The Government have made a great start cutting through red tape for farmers and repealing a lot of the most unworkable rules, but there’s still a lot of work to be done.

“If the Government are serious about their ambitious growth agenda and doubling exports over the next decade, this is where they need to be focusing their energy.

“As a country, we’re never going to be able to regulate our way to prosperity, but with the right policy settings, we might just be able to farm our way there.”