Farmers are enjoying the welcome lift in prices of primary produce, but are they sustainable?
Rob Davis, executive director of Meat and Wool Economic Service* thinks so.
That is good news not just for farmers but the wider economy.
Farmers are being cautious. Previous booms have been followed fairly quickly by busts so paying down debt is the first priority.
That means we’ve got a tale of two economies – there’s optimism in the rural sector but it hasn’t yet flowed through to the cities.
If Davis is right and good prices continue, confidence will grow, farmers will start spending again and that will flow beyond the farm gate into the wider economy.
* Beef + Lamb NZ has replaced Meat and Wool but the report I’ve linked to refers to Meat and Wool Economic Service.