Primary producer sentiment in Queensland has fallen to the lowest point since tracking began in 2011, as sentiment dives due to cost pressures linked to the Iran war.

Only eight per cent of producers think agricultural economic conditions will improve, while 61 per cent said conditions would worsen, according to new data from Rabobank.

The net index confidence score for Queensland farmers was -54 per cent, down from -10 per cent in the previous survey.

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Less than a third of producers think conditions will stay the same for the next year, down from 57 per cent previously.

The Rabobank Rural Confidence Survey found the decline in confidence was driven by almost 60 per cent of producers anticipating input costs will have a negative impact on their businesses.

About 40 per cent of those surveyed said they were concerned about drought, while 29 per cent expect a good season to have a positive impact on the agricultural economy in the coming year.

Rabobank state manager for Queensland Polly Saraiva said seasonally it had been a “mixed bag for Queensland”.

“Much of the north of the state had enjoyed a good summer, while producers in southern Queensland have received below-average rainfalls – negatively impacting their plans for the season ahead,” she said.

“Higher global energy prices linked to instability in the Middle East have flowed through to fuel, fertiliser and transport costs, putting renewed pressure on margins for Queensland producers.”

She noted producers would be closely watching the outcome of the announced US and Iran war peace agreement.

“In these volatile and turbulent times – with external risks impacting farming businesses and margins – it is important producers invest the time in preparing their businesses strategically.”