Australian rural confidence is now at a two-and-a-half-year high.

The survey – completed earlier this month – found 37 per cent of farmers expected conditions to improve in the coming year, up from 29pc in the previous quarter.

The number of farmers expecting conditions to worsen decreased to 13pc, down from 23pc last survey.

A comprehensive monitor of outlook and sentiment in Australian rural industries, the Rabobank Rural Confidence Survey questions approximately 1300 farmers across a wide range of commodities and geographical areas throughout Australia on a quarterly basis.

Rabobank general manager for rural Australia, Peter Knoblanche, said the latest survey had seen a general lift in farmer confidence as a result of consistent winter rains, particularly in the eastern states, with the biggest increases among those sectors also enjoying strong commodity prices, such as grain and dairy.

“Good late autumn and winter rainfall which fell across New South Wales, Victoria, Tasmania and parts of South Australia, Queensland, and southern Western Australia provided a real boost for farmers in these areas. In many regions, rain came at an ideal time for the planting of grain, while follow-up falls have helped to sustain crops,” he said.

“The most remarkable aspect of the falls through winter has been the consistency of rain in many areas.

“Most producers have come to expect a mid-season lull and have become resigned to waiting anxiously for finishing rain toward the end of the season.

“This winter, the steadiness and wide dispersion of rain has positively impacted large swathes of the eastern states, particularly in the south.

“Additionally, the rain has been substantial enough to significantly improve storage levels in some major dams, to the delight of irrigators.”

The survey showed the expectation of favourable seasonal conditions was the main driver behind increased farmer confidence this quarter.

Of those primary producers who expected conditions to improve over the next 12 months, 53pc nominated seasonal conditions as a major contributing factor, while rising commodity prices were also top of mind, cited by 59pc of grain producers and 46pc of respondents overall.