Business Confidence: Local Farmers Thinking Otherwise

Source: https://arr.news/, Sebastian Calderon, First Published April 23, 2025

A senior Riverland agricultural industry figure has questioned recent data supposedly showing an increase in local business confidence.

The latest BankSA State Monitor survey, undertaken from 18 to 24 February, showed business confidence in the region increased by 5.4 points to 101.1 points, this was above the 100-point benchmark, which indicates businesses are more optimistic than pessimistic overall, although consumer confidence decreased by 1 point, to 97.6 points.

According to the survey, conducted at a time when rural areas have been dealing with record-low rainfall and drought conditions, in the Riverland businesses were optimistic about improvement in the economic climate and in their own situation but were less likely to have recently added employees.

Grain Producers SA chair and local grain farmer John Gladigau said “the Northern Mallee region had a significant period of drought from 2017-19, from which most producers are still recovering”.

“An above-average 2022 season was the bright spot in the past 10 years, but has been tempered by two poor years since, with no real opportunity for farmers to get back on their feet,” Mr Gladigau said.

“The recent annual Grain Producers SA survey identified input costs of fertiliser, chemical and fuel as being the biggest issues as they move into the new season.”

The survey also showed consumers in the Riverland region were more likely to have made a recent major purchase, but were less optimistic about the current consumer spending climate.

“I can’t see where the information is coming from, as it certainly wouldn’t be from the agriculture or wine grape sectors at the moment,” Mr Gladigau said.

The survey also stated Riverland business confidence, increased by 16.2 points, to 102.4 points but consumer confidence decreased by 4.4 points, to 100.4 points.

BankSA agribusiness regional general manager Les Ryan said “the increase in business confidence across South Australia’s regions demonstrated cautious optimism, with all regions confident about business climate improvement, but remaining reluctant to add new employees”.

“The slight decrease in consumer confidence was led by consumers being less optimistic about their current household situation but they were more likely to have made a major purchase in recent months,” Mr Ryan said.

“The State Monitor survey was taken at the same time as the Reserve Bank cut interest rates, so these factors would have been front of mind for both consumers and businesses.”

“Record-low rainfall and drought conditions would also likely be playing a factor, but there has been positive news around tourism in the mid North and Riverland.”