The latest Rabobank Rural Confidence Survey found the state’s grain producers had driven much of the upswing in confidence. 

Sentiment among Victorian farmers is at a near two-year high, fuelled by strong harvest prospects and buoyant livestock markets, according to the latest quarterly Rabobank Rural Confidence Survey.

The latest survey found more than a third of Victorian farmers were expected conditions in the agricultural economy to improve over the next year, up from 29 per cent in the previous survey.

Just 14 per cent believed the conditions would worsen, down significantly from 26 per cent last quarter.

Rabobank southern Victoria and Tasmania regional manager Hamish McAlpin said farmers across the state were experiencing one of the best seasons in living memory.

“For many of the state’s grain growers, it is the best growing season in many years, with Victoria on the cusp of a big crop,” he said.

“While flooding had caused some damage, many farmers who were adversely affected had other areas that benefited from the rain.”

Mr McAlpin said farmers were looking for a spell of dry weather to get their crops off, with this year’s harvest running later than usual.

“Farmers are looking for a dry finish with the Bureau of Meteorology forecasting around-average rainfall for the next three months,” he said.

Mr McAlpin said while low grain prices were likely to be offset by good crop yields, there was an increase in farmers intending to sit on their stocks with the hope that grain prices would improve after harvest.

Rupanyup farmer and Grain Producers Australia chairman Andrew Weidemann said farmers were happy with yields this year and already optimistic about next year.

“With the soil moisture we have and the heavy stubble to reduce the effects of a hot summer, we have to be optimistic about next year,” he said.

Tempy grower Mike Robertson said he had only seen the region looking this good once before in his farming career.

“The only other time I’ve seen the Mallee looking this good was in 1983,” he aid.

“It’s great to see as there’s a lot of positivity in the community when you have crops like this. It’s just fantastic.”