Farmers say they are finding it harder to get skilled staff, though they're reasonably optimistic about the outlook for their businesses.
Federated Farmers' latest farm confidence survey carried out this month shows farmer confidence in the general economy has turned negative for the first time since July 2009, mainly driven by concerns about the global economy and the financial crisis in Europe.
Farmers' optimism about their own profitability remains quite solid, with almost half of the farmers surveyed expecting to increase production and reduce debt over the next year.
But Federated Farmers' president Bruce Wills says they are also finding the labour market has tightened, and it's more difficult to hire skilled staff.
He says the farming sector has to rely on a fair number of overseas people to fill vacancies in rural areas, particularly in the South Island dairy industry.
Mr Wills says it's a long term project to try to make farming more appealing to young New Zealanders, because ultimately farmers need young people to take on their businesses.
