A NEW survey has found that Tasmanian farmers are the most positive in the nation.
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The survey - conducted by Rabobank Rural and completed last month - found that 57 per cent of the state's farmers expected agricultural conditions to improve.
The result is up from 22 per cent.
Around one-third of farmers are expecting similar conditions to last year and just 2 per cent are expecting them to worsen.
The Rabobank Rural Confidence Survey questions on average about 1000 primary producers across a wide range of commodities and geographical areas throughout Australia on a quarterly basis.
Rabobank state manager Greg Bott said that while he was a little surprised that confidence was at 14-year high, the results reflected the positive mood on the ground.
"A lot of factors are working in the favour of farmers at the moment and there is the general feeling that there is a big future for agriculture in Tasmania," Mr Bott said.
"This is reflected in strong investment interest from overseas parties as well as public and private investment in new irrigation schemes.
"The state government also has an increased focus on agriculture and sees it as one of the 'key pillars' of the state's economy."
The survey found that the biggest driver of Tasmanian farmer confidence this quarter was the dollar, with 62 per cent of those expecting conditions to improve citing the lower dollar - up from 48 per cent.
The fall in the dollar back to US70¢ has strengthened returns for exporters, Mr Bott said, particularly for those in the dairy and beef sectors.
"While global dairy prices have been fairly lacklustre, farmers here have been largely shielded and prices remain around $6 a kilogram for milk solids due to the falling currency as well as processor flexibility to adjust the product and market mix to higher returning streams, such as, cheese," he said.
The next round of survey results are scheduled for release in June this year.