Droughts, flooding and bushfires have combined to leave Australia's farmers more negative than positive about prospects for 2019.
Rabobank's quarterly rural confidence survey released on Tuesday suggested drought conditions were still a big concern in many parts of the country.
Recent flooding in north Queensland - which the Australian Agricultural Company said this week had caused the loss of up to 52,875 of its cattle - was particularly harrowing for local farmers.
"For those north Queensland cattle producers who have endured years of drought and fought to keep their stock alive, only to lose them in the floodwaters is nothing short of devastating," Rabobank Australia chief executive Peter Knoblanche said.
The number of Australian farmers who anticipated incomes improving this year declined slightly to 21 per cent, from 24 per cent in the previous quarter.
Thirty-four per cent expected a weaker financial result and 42 per cent expected similar incomes to last year.
The survey suggested confidence remained relatively sound in Tasmania despite bushfires that have affected grazing in the Highlands and caused potential smoke taint to wine grapes in the Huon Valley and Channel region.
The amount of rain in the next few weeks will be key in determining confidence for the upcoming season, Rabobank said.
"A good autumn break will be critical to allow farmers to get their crops in on moisture and to give graziers some relief from feeding stock," Mr Knoblanche said.
"And significant rains are needed to boost irrigation storages, which remain low in all major systems in southeastern Australia."
Mr Knoblanche said elevated commodity prices and improved access to overseas markets, helped through trade deals such as the agreement signed in Indonesia last week, were reasons for optimism.
