SOUTH Australian sheep producers are entering the second half of 2025 with renewed optimism, following a sharp turnaround in rural confidence across the state, according to Rabobank’s latest Rural Confidence Survey.

While drought and seasonal challenges remain front of mind, confidence among livestock producers has lifted significantly, supported by improving market conditions and expectations of better feed availability. 

The survey found 45 per cent of the state’s sheep producers expect their incomes to rise over the next 12 months — up from just nine per cent in the previous quarter.

Rabobank regional manager for South Australia Roger Matthews said many producers were now well-placed to rebuild flocks after widespread destocking in 2024.

“We’re seeing some positive signs in the sheep sector, particularly with reduced lamb volumes helping to lift prices,” Mr Matthews said.

“Producers are responding to those signals, and with better seasonal conditions forecast, there’s a growing sense of cautious optimism.”

Favourable spring conditions in the South East, which supported summer feed, were credited with boosting reproduction rates and outlook for sheep operations.

More broadly, SA farmers recorded the biggest jump in confidence nationwide, with 38 per cent expecting agricultural conditions to improve. 

Sheep producers were among those driving renewed investment intentions, with more planning to expand flocks and improve water and farm infrastructure.

Despite the challenges of 2024, including late seasonal breaks and frost events, Mr Matthews said adversity had made many producers more resilient and informed.

“This generation of farmers has come through one of the toughest years yet and are better equipped for the future.”