Drought drives farmer confidence to decade low: Rabobank survey

The drought crippling Australia's eastern states has driven farmer confidence to the lowest level in more than a decade according to a report out this morning.

The latest rural confidence survey from Rabobank says sentiment has plumbed the depths of the millennium drought in 2006 - and more than half of those polled expect conditions to deteriorate over the coming twelve months.

But despite the grim outlook, the survey says many farmers are resilient and adapting to the worsening drought conditions.

I spoke with Rabobank's head of food and agriculture Tim Hunt.