New Zealand’s National Party Agriculture spokesman David Carter says the country should be concerned at the results of the latest survey of farmer confidence.

The Rabobank/AC Nielsen Rural Confidence Survey showed that farmers in all sectors - sheep, beef, dairy and cropping - are becoming pessimistic about the economy over the next 12 months. 59% of farmers expect lower incomes this year and 77% expect input costs to increase, which would put the squeeze on farm profitability.

"The Government has taken farmers for granted for years and has continued to place significant costs and legislation onto the farming sector," said Mr Carter.

"Commodity prices are declining and costs are increasing, which is making profitability increasingly difficult to obtain.

"Farmers are facing tough times, particularly sheep farmers, with wool prices scraping the bottom of the barrel and a lamb schedule that is declining week after week."