Farmer Confidence Plunges Amid Cost Pressures

NSW Farmers is warning governments to urgently address an acute cost-of-production shock, after new survey data showed surging input costs are eroding confidence across the sector.

The latest Farm Business Sentiment Survey found fuel and fertiliser prices have risen by around 80 per cent, flowing through to freight costs up 60 per cent, farm chemicals up 40 per cent and labour up 25 per cent.

Overall, 80 per cent of farmers expect business conditions to worsen over the next 12 months, while many are already adjusting operations in response to tighter margins.

Around 22 per cent of respondents reported scaling back production, and 36 per cent are changing cropping and stocking plans as input costs bite.

NSW Farmers President Xavier Martin says the figures are a clear warning that food production and regional economies are under significant strain.

The organisation is calling for targeted tax relief, lower freight charges and improved access to low-interest finance to stabilise production and support regional jobs.