Rabobank

Sentiment among Australia’s agricultural producers continued to track lower this quarter, with concerns about cost pressures in the wake of Middle Eastern tensions remaining top of mind for farmers across the country. The quarter two Rabobank Rural Confidence Survey, released today, found national sentiment at its lowest point since November 2006 as it dropped to a net reading of - 48 per cent.

A slowing in global milk production - following an intense period of growth - is set to see global dairy markets headed back towards supply and demand ‘balance’, Rabobank says in its newly-released Q2 Global Dairy Quarterly. The report, by the international agribusiness bank’s RaboResearch division, says the rate of global milk production growth finally began to slow in quarter two this year.

Australia is set to plant a reduced winter crop this year, as the nation’s grain growers contend with mixed weather conditions and the impacts of significantly-higher farm input costs, Rabobank says in its 2026/27 Australian Winter Crop Forecast. The specialist agribusiness bank estimates Australia’s winter cropping area will come in at 23.1 million hectares for the season – down eight per cent on last year and 4.3 per cent below the five-year average.

Australia’s dairy producers are facing the 2026/27 season with "limited margin for error" as they juggle rising input costs, Rabobank says in its newly-released annual Australian Dairy Outlook ... escalating input costs – led by fuel, fertiliser, water, labour and interest rates – remain the dominant pressure for the nation’s dairy producers.

While headline annual inflation rose sharply in the March 2026 Consumer Price Index (CPI), the re-acceleration in inflation was not, at this point, food led, with food price inflation remaining similar to levels recorded since mid-2025.

Australian farmland prices are expected to grow modestly in 2026, continuing the trend seen over the past year, Rabobank says in its latest annual Australian Farmland Price Outlook. The report, by the specialist agribusiness bank’s RaboResearch division, says the outlook for agricultural land prices in 2026 points to "moderated" growth, with the median price per hectare set to increase by approximately two per cent in its "base case" forecast.

The global fertiliser market faces a prolonged period of tight supply, weak affordability and heightened price risk and, even if current geopolitical tensions ease soon, "normalisation will be slow", according to a recently-released industry report. In its latest Semi-annual Fertiliser Outlook, global agribusiness banking specialist Rabobank says the international fertiliser market ended the first quarter of the year under severe strain.

As Australians grapple with current fuel price hikes and supply challenges, a new report highlights the key role the nation’s canola could play as a biofuel in future energy transition and fuel security.

Australian rural confidence declined in the first quarter of 2026, with the nation’s farmers already concerned about cost pressures in the year ahead, even prior to the outbreak of the current Middle East conflict. The quarter one Rabobank Rural Confidence Survey found national rural confidence had slipped to a net reading of -9 per cent (down from six per cent in the previous survey) even before the outbreak of the war against Iran.

Australia’s beef exports are set to face some of the biggest adjustments compared with other international exporters as new import quotas announced by China in late last year reshape the global beef trade, Rabobank says in a newly-released report.