Federated Farmers has painted a positive picture of the industry on the back of its latest six-monthly Farm Confidence Survey, but some are cautious about the role councils will play.

Central Otago farmer Gary Kelliher said while there were positive signs in the industry, he wasn’t sure if councils would abide by the government’s demands for less red tape.

“There’s so much for them to back down on and become more enabling and it’s very apparent they don’t want to,” he said.  

“So I’m in a ‘believe it when I see it’ stance at the moment.”

Lower interest rates, strong dairy and meat prices, and government cuts to red tape have delivered a big lift in farmer confidence, according to the Federated Farmers’ latest six-monthly Farm Confidence Survey, compared to 12 months ago.

"Farming families have been through some really tough years recently and that’s weighed heavily on our rural communities," Federated Farmers president Wayne Langford said.

"For the last few seasons, we’ve been farming with sky-high interest rates, rising on-farm costs, fluctuating incomes, and a web of red tape that felt near impossible to navigate.

"It’s great to see our July survey showing many farmers are feeling a whole lot more positive, thanks to better returns, lower interest rates, and easing inflation.

"We’ve also seen a government that’s been willing to work with farmers and scrap some of the most unworkable, impractical rules that were killing the rural economy."

Federated Farmers came up with 12 key policy changes for the next government to implement in its’ Roadmap for restoring farmer confidence’. The group said it had been “absolutely relentless” in pursuing the changes it knew would make the biggest difference behind the farm gate.

"That list included fixing unworkable freshwater rules, getting RMA reform right, urgently reviewing our methane reduction targets, and rethinking the rules for carbon forestry.

"The government has really listened to farmers, got stuck in making some much-needed changes, and they’ve essentially ticked 11 of those 12 policy priorities off the list."

The Farm Confidence Survey found farmer perceptions of current economic conditions have risen to their highest level in almost a decade.

A net 33 percent of respondents believe conditions are currently good, a dramatic turnaround from the record low of -66 percent just a year ago, and up from two percent in January this year.

Meanwhile, current farm profitability has reached its highest level ever recorded in the survey, with a net 65 percent of farmers feeling confident about profitability - up 12 points since January.

The survey found that while confidence in current conditions was high, the forward-looking indicators have started to soften.

Despite global uncertainty, farmers remain focused on strengthening their financial footing, with 43 percent planning to reduce debt in the next 12 months, almost double from a year ago.

"Farmers are using the breathing room from lower interest rates and improved profitability to pay down debt and build resilience. That’s smart business," Wayne Langford said.

The survey also found hiring challenges have eased slightly, with a net 14 percent of farmers reporting difficulty recruiting staff in the past six months - the most favourable result since 2012.

"Immigration settings have improved and that’s helping farmers get the skilled and motivated people we need," Wayne said.

The results show rural mental health has been continuously improving too, moving from a net 52 percent negative in January 2023, to net 26 percent positive in July 2025.

When asked about their biggest concerns, regulation and compliance costs remained the number one concern, followed by climate change policy and the Emissions Trading Scheme in second, and local government and rates in third.

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