Sheep and beef behind rise in farmer sentiment

Tasmanian farmers are the most confident in the nation, while Western Australian primary producers are the most worried, according to a new survey.

Farmers are again a confident lot, with a key gauge for optimism among primary producers at its highest level in 18 months.

More rain, better growing conditions, and improved livestock and commodity prices are behind a bump in the Rabobank Rural Confidence Survey, out Tuesday.

The headline figure was farm sector confidence is at positive 14%, up from the neutral zero score in the survey last quarter.

It is just the third time the score has been positive - with those optimistic outweighing those who are not - in the past three years.

Sheep farmers were top of the pops, with net confidence at 31%, which Rabobank spokesman Marcel van Doremaele attributed to strong prices for their meat, as well as improving fine wool prices.

Beef farmers were just behind, at a net 27%.

"Australia's beef and sheep producers have been buoyed by relatively consistent and robust prices driven by strong international demand," Mr van Doremaele said.

"Rain early in the year across key beef-producing regions in Queensland and northern New South Wales provided good pasture for beef producers in those areas.

"And with the potential of the herd rebuild in the United States reducing its beef supply - along with lower beef import volumes coming in from Brazil - US imported lean trim prices may continue to remain high, supporting Australian prices and sustaining producer confidence."

The survey also ranks optimism by state, with Tasmanian farmers the brightest at a net 34%, ahead of Victoria (net 21%), and the most-improved: NSW, which jumped to 15% from - 10 per cent three months ago.

Queensland beef producers have driven a lift to 10% in the Sunshine State, while South Australian farmers sit at 8%.

Western Australians are the most worried, with a neutral setting, up from negative six.

The sectors with the lowest sentiment were cotton, grain and sugarcane growers, which all boast negative scores.

"Cotton prices continue to face downward pressure ... the overarching theme behind recent price action appears to be very strong global supply, namely from Brazil," Mr van Doremaele said.