The rising kiwi has further dented farmers' confidence.
Some 37 per cent of farmers expect the rural economy to worsen over the next 12 months, says the Rabobank AC Nielsen Rural Confidence Survey, conducted last month.
Only 11 per cent expected the rural economy to improve. In October,18 per cent expected the economy to worsen.
With the drop in headline confidence, 38 per cent of farmers expected their farm incomes to fall during the next 12 months, with dairy farmers the most pessimistic followed by sheep farmers. Only 25 per cent of farmers expected an increase.
Ben Russell, general manager of Rabobank in New Zealand, said farmers were preparing for a year of tight cashflows, driven by a mixed outlook for commodity prices, continued increases in costs and a high kiwi.
