Farmer optimism has fallen in Federated Farmers' latest confidence survey.
The mid-season survey, carried out this month, shows that although farmers remain fairly positive about the outlook for their own businesses, their confidence in the general economy has turned negative for the first time since July 2009.
Federated Farmers' president Bruce Wills says that's mainly driven by concerns about the global economy, especially the financial crisis in the Euro-zone.
Mr Wills says the outlook is still a lot better than it was a couple of years ago, especially for sheep and cattle farmers.
And he says good growing conditions in most of the country this season are helping to keep farmer confidence strong in their own operations.
A net 48% expect to increase production and a net 44% plan to continue reducing debt and a net 33% are looking to increase spending.
