Improved rainfall across much of Australia has lifted farmers' confidence in the future of the agricultural economy from low levels three months ago, a quarterly survey by Rabobank showed.
Australia is one of the world's biggest agricultural exports. Farm confidence plunged earlier in the year as unusually low rainfall in many regions threatened crop yields and pastures.
However, widespread rain has improved the crop outlook, and strong export demand has helped raise livestock prices.
'Patchy Start'
"The patchy start to this year's season has been corrected in many farming regions, especially in Western Australia where seasonal conditions looked dire last quarter but have really turned around," said Rabobank executive Marcel van Doremaele.
"Livestock producers are more optimistic after improvements in cattle and sheep prices, and there are also positive signals for dairy production," he said.
"Grain and cotton farmers, though, face more bearish conditions with global drivers putting downward pressure on prices."
Expected Improvement
Rabobank's survey of around 1,000 farmers found that 23% expected the agricultural economy to improve in the coming year, up from 15% three months ago.
Twenty-seven percent of respondents expected conditions to worsen, down from 36%, while 47% thought the situation would remain stable.
Drought remained the main worry for farmers but fewer were concerned than three months ago, and fear of rising input costs also lessened.
Elsewhere, last week, Australia said it will fine internet platforms up to 5% of their global revenue for failing to prevent the spread of misinformation online, joining a worldwide push to rein in borderless tech giants but angering free speech advocates.
The government said it would make tech platforms set codes of conduct governing how they stop dangerous falsehoods spreading, to be approved by a regulator.
