New Zealand farmer confidence strengthened in January, thanks to improving economic conditions, stabilizing inflation, and favorable commodity prices, according to a report by the Federated Farmers published Wednesday.

Farmer confidence soared 68 points to 2% in January from negative 66% in July 2024. This is the largest movement since the measure began in 2016.

A net 23% of farmers expect conditions to improve over the next year, marking the highest level since January 2014, per the report.

The number of farmers reporting a profit doubled to 54% from 27%, while confidence in future profitability climbed to 31% from negative 10%.

When asked about their top concerns, farmers cited regulation and compliance costs, debt, interest and banks, and input costs.