Confidence in agricultural commodities for the upcoming season has fallen, according to a recent survey, as farmers are urged to prepare for risk ahead amid an El Nino summer. 

Despite a slight reprieve for some Western Plains communities with scattered rainfall, conditions have dried out across the region, causing hesitation about farming investments and what a season ahead on-farm might look like. 

The Rural Financial Counselling Service (RFCS) insists that regardless of conditions, a risk management plan is a must. 

“When it comes to dealing with risks in farming, the absolute worst thing you can do is nothing,” RFCS NSW Team Leader Susan Kelley said.

“Some risks are more significant or front of mind than others, like the weather, but there are many different types of risks faced by farmers that are not often considered, like succession planning.”  

According to an quarterly NSW farmer sentiment survey by Rabobank, the high expectation that conditions will decline could see a significant shift in decisions from farmers, particularly for grain growers and livestock producers. 

“The situation across the state is patchy - with the dry conditions meaning some grain growers in the north of the state chose not to plant a crop this season,” Rabobank spokesperson Sally Bull said. 

According to the survey, there is also little optimism when it comes to expected incomes and debts for the year ahead. 

For the RFCS, it’s been a cause to amplify their warnings around risk management, wanting farmers to set aside time to develop realistic strategies. 

“You have to get on the front foot with risk management and you must think objectively. Don’t rely on instinct, feelings or traditions,” Ms Kelley said. 

“Don’t wait until crisis hits. Do it now. Call us anytime on 1800 319 458 and we can help get your risk management plan in place.” 

Rural Financial Counselling Service NSW offer a free and confidential service specialised in agricultural and rural small business financial management.