New research shows just two per cent of farmers expect conditions to improve for their business over the next twelve months as floods and drought continue to impact NSW.
The biannual NSW Farmers Business Sentiment Survey revealed 56 per cent of farmers are experiencing deteriorating business conditions in 2025 thanks to natural disasters, input costs and global trade headwinds.
Insurance was another major concern for farmers, with the number of respondents concerned about accessing insurance jumping by 10 per cent in the last year alone.
NSW Farmers Principal Economist Samuel Miller said the results of the survey were telling of the effects of the climate extremes being seen across the state.
"What we're seeing is the impact of drought on one hand, and floods and severe weather on the other - with both extremes driving those really tough business conditions for farmers in many parts of the state," Mr Miller said.
"As insurance skyrockets and disaster after disaster hits the farmers that feed our nation, many have been left with the prospect that insurance - something every business should be able to access - may soon be out of reach."
As communities grappled with the compound effects of multiple disasters, Mr Miller said meaningful support for farmers dealing with flood and drought was essential.
"All the evidence shows that practical, long-term initiatives like the Regional Investment Corporation's low-interest loans really do help farmers manage drought and other challenges, so it's vital the support of these tools are guaranteed," Mr Miller said.
"We're also hearing reports from areas most severely impacted by the recent floods that current disaster relief isn't nearly enough to address the devastation, so our governments need to step up their game to help these communities back on their feet.
"Farmers plan and prepare for all manner of conditions, but the right supports must be in place to fast track recovery for our farm businesses, so they can keep feeding and clothing the world."
