A confidence-boosting rise in farmgate prices is expected to free up farmer spending at the South Island Agricultural Field Days (SIAFD) in Canterbury’s Kirwee.
The countdown to the three-day agricultural event from March 26 coincides with a Federated Farmers survey tracking farmer confidence rebounding to its highest level in more than a decade from record lows.
After a tough year of high costs and low prices, prospects are on the up with Fonterra’s mid-point forecast at $10/kg of milksolids and beef, lamb and crossbred wool prices in a healthier state.
Last week’s lowering of the official cash rate to 3.75% had major banks cutting interest rates.
SIAFD organisers are preparing for a positive result with 600-plus exhibitor bookings so far in line with the last field days held at the site two years ago.
He said the first half of the 2024-25 farming year was tough, but there had been more good news for commodity values since Christmas.
“Being a farmer myself, it’s certainly looking more positive.
“Last year would have been a bit more of a struggle and even two months ago people were struggling a little bit, bit I think how positive things are at the moment and with what we’ve got going forward we definitely should be looking pretty.”
The days of a big spend up on items everyone dreamed about had probably passed and farmers tended to make big purchases as they were needed, Mr Stewart said.
The dairy farmer milking 450 cows year-round near North Canterbury’s Waikuku had yet to make a shopping list.
“[That might include] new technology as much as anything to keep up with all of that and it’s the upgrades to the milking shed and the cow collars along with the general tractors and motorbikes and all that fun stuff.”
A higher dairy payout tended to be a big confidence booster and was usually followed by higher grain and other prices.
Regular exhibitors returning included big-name farm machinery, fuel and fertiliser companies with new businesses registering for the event.
There was plenty of shopping over the three days, but farmers often liked to look and connect with companies before making deals later.
“It’s a good spot for everyone to turn up and you can compare tractors and all the different stuff in one spot and go out and do your homework when you get home and buy it after that.”
Machinery demonstrations would continue to attract visitors. A shootout among telehandlers and tip-trailers was expected to be a drawcard.
An addition to the entertainment programme was the Cowboy Challenge, horse riders weaving through a series of obstacles over a time course.
The committee had made access to exhibitor sites easier by adding more shingle laneways and topping up existing lanes to prevent the mud holes left by a deluge at the last event.
Site marking and the installing of water pipes and power cables would start in early March with shed companies beginning to put up their structures.
Federated Farmers’ latest farm confidence survey shows falling interest rates, rising incomes and more favourable farming rules have improved the outlook of farmers.
President Wayne Langford said farmers were feeling more positive.
“The last few years have been bloody tough for a lot of our farming families, with falling incomes, rising interest rates and unpaid bills starting to pile up on the kitchen bench.”
The January survey shows confidence in general economic conditions surged from a negative 66% in July 2024 to a positive 2% for the largest one-off improvement since 2016.
About 23% of farmers now expect better economic conditions over the next year — the highest confidence level since 2014.
Just over half reported making a profit — double the number in the last survey six months ago.
Mr Langford said while the upswing was good news, confidence was still only just in positive territory.
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