The high New Zealand dollar, and the difficult spring weather conditions which challenged calving and lambing, have hammered farmer confidence for the first time in more than a year.

The latest Rabobank Rural Confidence Survey shows farmer confidence has fallen to 24 per cent from 30 per cent from the previous July survey.

The survey found 37 per cent of farmers expect the agricultural economy to improve in the next 12 months, down from 41 per cent in the previous quarter.

Those expecting conditions to worsen increased to 13 per cent, from 11 per cent previously.

Rabobank says dairy farmers in particular, although the most optimistic of the bunch, were less confident than the highs recorded mid-year.

“Dairying is still the most optimistic of the categories, but it’s come off a high, so it’s come down since July but is still high,” said Waikato/King Country regional manager Paul Lamont.

“Perhaps the production has been slightly down, but with the slightly lower payout than forecast that could be a factor too.”

According to Mr. Lamont, “Most sheep farmers are confident about price per lamb, but the unfortunate thing is most of them will have less of those to sell. With the weather problems down south, and also in the central North Island, they’ll be feeling it.”

Rabobank says farmers' expectations about the performance of their own individual operations were also subdued.