Australian farmers are feeling more optimistic thanks to a weaker Australian dollar and good rainfall across the southern states during winter.

The Rabobank Rural Confidence Survey recorded a significant turnaround in sentiment among farmers in the three months to the end of July after weakening consistently over the previous 15 months.

The survey found 36 per cent of farmers expected conditions to improve over the next 12 months, up from 15 per cent in the previous quarter, while 38 per cent had a stable outlook.

Rabobank group executive for country banking Australia, Peter Knoblanche, said the improvement in confidence had been strongest in the cotton and dairy sectors, although all farm sectors had lifted compared to the previous three months.

“The impact of good timely rainfall in the southern states, along with the easing in the Australian dollar, is now starting to be felt by the farm sector and this is leading them, overall, to feel much more optimistic about the year ahead,” he said.

Mr Knoblanche said that while the survey had been completed just prior to the election campaign, Saturday’s poll result would likely also add to farmers’ confidence levels.

“Concerns about public policy have been raised as an issue by farmers in previous surveys, particularly in relation to the carbon tax, the Indonesian live cattle trade suspension and mining on agricultural land,” he said.

“How farmers are impacted by any changes in the public policy arena will no doubt be reflected in coming surveys.”