The latest quarterly Rabobank Rural Confidence Survey shows the state’s farmers are buoyed by stronger prices for livestock and crops, with dairy farmers the most positive.

Dairy market recovery has boosted confidence across the sector, with 39 per cent of all farmers predicting improvement this year and 50 per cent expecting conditions to stay the same.

Farmers expecting conditions to worsen fell to eight per cent, from 11 per cent, Rabobank regional manager for Tasmania Hamish McAlpin said.

“The improving outlook for farmgate milk prices, coupled with the season, has seen an improvement in dairy farmer sentiment in recent months,” Mr McAlpin said.

“While farmgate prices have only improved marginally this season, the benefit of higher export returns is set to come next season. And it is this much improved price outlook, coupled with favourable seasonal conditions and a healthier supply of home-grown feed and more affordable purchased-in feed, which should start to see profitability return to the sector,” he said.

Most (73 per cent) Tasmanian dairy farmers surveyed expected improved agricultural economic conditions in 2017, a significant upturn from 22 per cent at the same time last year.

Commodity prices were cited as the main reason for such a positive response.

“While prices for mid-micron wool types have been reasonably solid for the past few years, the lift in prices at the finer end is driving renewed confidence in the wool market,” Mr McAlpin said.

“The season has proved to be good for fodder conservation, with the state enjoying a relatively mild summer, unlike the heatwave experienced across other parts of the country. This has seen farmers enter autumn with an abundance of feed, and good reserves of hay and silage following large fodder harvests,” he said.

Last year’s flooding and unseasonally wet conditions have affected some crop yields and harvest timing, such as potatoes and poppies, but this has not dampened Tasmanian farmer’ investment plans.

All survey respondents plan to increase (34 per cent) or maintain (66 per cent) investment, such as infrastructure, livestock, irrigation and plant and machinery upgrades, in their farm business over the next year.

“We are seeing strong investment on-farm with farmers upgrading infrastructure to increase their efficiencies. While investment in the dairy sector has been lagging, as farmers have battened down the hatches, it is starting to lift as optimism returns to the sector,” Mr McAlpin said.

Demand for the state’s rural property is also strong, with interest from outside investors particularly evident.

The next survey results are due in June.