Dairy commodity prices continued to strengthen thanks to steady demand and lower supply, and that had been recently reflected in strong opening price signals for the 2017-18 season by many dairy processors.
The survey also found farmers' expectations for their own farm business performance were up on the last survey.
More than half of farmers surveyed anticipated the performance of their own farm business would improve over the next 12 months.
It was very unusual to have farmers from all New Zealand's key agricultural sectors so confident about the outlook for their own business and that boded well for the economy, she said.
Farmers' investment intentions had also lifted, with 40% expecting to increase investment in the next 12 months and only 5% expecting to decrease investment. Horticulturists continued to have the strongest investment intentions.
''With positive margins likely for dairy producers this season, farmers are now able to consider reinvesting in their businesses for items put on the backburner over the last three years, such as technology, shed improvements and new equipment,'' Ms Moynihan said.
Rabobank's latest global dairy quarterly report said strong import growth from China was predicted in the second half of the year.
Weak farmgate milk prices in China resulted in restricted volume growth from large corporate farms coupled with smaller farmers continuing to exit the industry, dairy analyst Emma Higgins said.
Although a 1.2% growth in production was forecast for China, inventory pipelines were running low and mediocre consumption growth would outstrip supply growth.
Prices for dairy fats were at record levels, the US and Europe the key buying markets.
