New research shows that only two per cent of farmers in New South Wales expect business conditions to improve over the next twelve months, as floods and drought continue to impact the region. The biannual NSW Farmers Business Sentiment Survey revealed that 56 per cent of farmers are experiencing worsening business conditions in 2025, driven by natural disasters, rising input costs, and global trade challenges.
Access to insurance is becoming a growing concern, with the number of farmers worried about insurance availability rising by 10 per cent over the past year. NSW Farmers Principal Economist Samuel Miller said the survey results highlight the ongoing impact of extreme weather across the state.
"What we're seeing is the impact of drought on one hand, and floods and severe weather on the other – with both extremes driving those tough business conditions for farmers in many parts of the state," Mr Miller said.
"As insurance skyrockets and disaster after disaster hits the farmers that feed our nation, many have been left with the prospect that insurance – something every business should be able to access – may soon be out of reach."
With communities grappling with the effects of multiple disasters, Mr Miller stressed the importance of meaningful support for farmers dealing with both flood and drought. "All the evidence shows that practical, long-term initiatives like the Regional Investment Corporation's low-interest loans really do help farmers manage drought and other challenges, so it's vital that the support of these tools is guaranteed," he said.
"We're also hearing reports from areas most severely impacted by the recent floods that current disaster relief isn't nearly enough to address the devastation, so our governments need to step up their game to help these communities back on their feet. "Farmers plan and prepare for all manner of conditions, but the right supports must be in place to fast-track recovery for our farm businesses, so they can keep feeding and clothing the world."
For more information:
Eliza Fessey
NSW Farmers
Tel: +61 (0) 427 411 220
[email protected]
www.www.nswfarmers.org.au