SYDNEY, March 25 (Xinhua) -- Australian rural confidence declined in early 2026 even before the outbreak of the current Middle East conflict, as cost pressures weighed on farmer sentiment, a survey showed Wednesday.

The latest quarterly survey by Rabobank, an agribusiness financial service provider, showed national rural confidence dropped to a net reading of minus 9 percent, down from plus 6 percent in the previous quarter.

Higher input costs, particularly for fuel, fertilizer and freight, were farmers' main concern, along with a dry summer and uneven seasonal conditions across Australia, the survey showed.

Rabobank group executive for Country Banking Australia Marcel van Doremaele said concerns about the cost and availability of farm inputs would now be figuring considerably higher in farmers' minds due to the Middle East conflict, particularly moving into the winter cropping program.

"We've seen fuel and fertilizer markets and freight rates react to the Middle East conflict due to the impact on prices and threat to supply and this flows directly into Australian farm budgets, adding to inflationary pressures," van Doremaele said.

The survey found confidence softened across all agricultural commodities, led by grains, dairy and cotton, except for the sugar cane sector, which recorded an improvement.

"Planting, harvesting and managing crops requires a great deal of diesel, so rising prices and/or shortages will have an immediate impact on the hip-pocket of farmers," said Associate Professor Hanabeth Luke at Australia's Murdoch University. ■