Another rural confidence survey has confirmed farmer optimism is on the wane.
The latest survey from Rabobank shows farmer confidence has declined for a second consecutive quarter.
Among those questioned, 36% expect the agricultural economy to worsen in the coming year, compared with 27% previously.
Only 11% expect conditions to improve, down from 17% in the previous quarter.
Rabobank New Zealand chief executive Ben Russell says the further fall in confidence reflects the uncertain global economic environment which has pushed down commodity prices.
But most farmers also say they plan to maintain or increase their on-farm investment over the coming year, showing they are still optimistic about the longer-term outlook.