Despite a year of costly trade tensions with China plus global export setbacks caused by coronavirus, farmers say their viability is at record highs and confidence is soaring, too.
Thanks largely to good weather, only three per cent of Australian farmers rate their businesses as unviable, while 42pc expect to enjoy even better farm incomes in 2021.
Rabobank's latest quarterly Rural Confidence Survey of 1000 farmers has posted one of its highest rural sentiment readings in 20 years.
A third of those surveyed intended increasing their farm investment spending in the coming year.
The bank has attributed much of the upbeat mood to exceptional seasonal conditions in many areas, a monster grain harvest, and a stellar run for most farm commodity prices.
After the crippling drought conditions prevailing a year ago, 2020's record-breaking winter grain crop receivals, upbeat summer crop prospects and high livestock prices have outweighed concerns about COVID-19 and lost export markets in China.
Cotton most optimistic
Remarkably, the cotton sector, one of those commodity areas already squeezed by Beijing's tactical meddling to undermine Australian exports to China, has agriculture's most optimistic farmers, with 81pc currently tipping better business conditions in 2021.
Just three months ago, prior to crops being planted, only a third of cotton growers were bullish about next year's business prospects.
The mixed beef-sheep, grain and dairy sectors also reported strong income expectations for the year ahead, despite beef and grain both having encountered export issues with China this year.
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South Australian farmers reported Australia's highest farm viability expectations, with 98pc of those surveyed rating their business as viable.
In an extraordinary revival of sentiment, SA has leapt from having just 11pc of farmers with an optimistic outlook three months ago when coronavirus, barley and wine export issues and seasonal uncertainty were front of mind.
About 46pc now expecting a positive year ahead.
NSW leads ag investing
Rural sentiment in NSW has hit its highest ranking in 12 years, and is leading the nation with 57pc of farmers expecting higher farm incomes next year - up from 39pc in September.
Just 3pc of those surveyed had a pessimistic outlook.
NSW also had the strongest farm investment intentions, with 43pc of producers planning to boost spending, well ahead of the national average which has also jumped from 25pc to 33pc since September.
An "almost perfect" spring across Tasmania has bolstered confidence in that state where rural sentiment has rebounded to a 15-month high with very few farmers tipping a slide in business conditions.
A year to remember
"The extraordinary turnaround in the season has made it one for farmers to remember," said Rabobank Australia's chief executive officer Peter Knoblanche.
Exceptional conditions in most eastern states' agricultural regions had enabled farmers to dramatically boost production and profits after years of drought for many.
"While 2020 has been a year of great uncertainty and challenge for everyone in the community, after years of low, or no returns for some, the tables have well and truly turned," he said.
"Graziers who were able to hold sheep and cattle during the drought are now being well rewarded, with livestock prices reaching unprecedented levels in spring and demand for the year ahead forecast to remain strong."
Mr Knoblanch said some regions hit hardest by drought had seen grain receival records smashed, with some NSW district tonnages being the highest in 20-plus years.
"This harvest will deliver a huge boost to incomes and cash flow for many," he said.
China worries
However, he noted concern across the farm sector about international markets due to escalating trade tensions with China, particularly for wool, wine, cotton and seafood.
Unease about relations with China had been nominated by 16pc of farmers as a reason for taking a pessimistic outlook on the year ahead.
That was up from just 6pc in the previous quarter.
Concern about overseas markets and economies was a dominant factor for those farmers expecting business conditions to worsen in 2021 and cited by 47pc of those who were negative about agriculture's prospects.
After spiking last quarter, worries about COVID-19 disruption to supply chains and prices were now troubling farmers much less.
Mr Knoblanche said the continuing strength of the Australian rural property market "hadn't ceased to amaze".
"A good season and low interest rates is continuing to support significant investment in rural property across Australia."
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