The latest Federated Farmers farm confidence survey shows farmers are more optimistic than they were at the beginning of the year.
The rise in confidence is despite a fall in commodity prices from their recent peaks and the record highs the New Zealand dollar has reached against the US currency, which is undermining export returns.
The twice-yearly survey shows more farmers are expecting the general economy and the profitability of their own farms to improve.
There's been a big jump in the number of farmers who are expecting their production to increase and more are expecting to lift their spending, as well.
Farmers surveyed cited climate change policy and the emissions trading scheme as the biggest single issue concerning them.