Westpac's chief executive, regional and agribusiness banking, Graham Jennings, said the positive result could be attributed to a number of factors including capital expenditure, employment and business confidence.

"In those parts of Queensland where weather conditions had improved, performance, confidence and future expectations were higher than those still affected by dry conditions," Mr Jennings said.

"Higher commodity prices are a positive influence on performance and future expectations and although this is tempered by increasing operating costs, overall agribusiness confidence levels are expected to remain higher in Queensland this quarter."

The Westpac & CSU Agribusiness Index produces an Economic Performance Index (EPI) between -1 and 1 based on the average of results for business performance, employment and investment indicators.

The overall EPI for Queensland was 0.04, well above the national average of 0.02.

It surged from -0.04 in the December quarter and is the first time the indicator has been in positive territory since the Westpac & CSU Agribusiness Index began 18 months ago.

The primary producer sector reported an EPI of 0.02, which is an improvement on the previous quarter.

This result, which is around neutral on the scale used by the Index, indicates a 'wait-and-see' approach being taken by producers who are closely monitoring weather patterns and business costs.

Six of ten statistical regions in Queensland reported positive performance, compared to three in the previous quarter.

Of the three statistical divisions reporting negative performance - Moreton, Far North and South West - improvements over the previous quarter were recorded in the Far North and South West regions.

"Agribusiness operating costs, such as fuel, fertilisers and chemicals, increased right across Queensland in the March quarter at a rate greater than in any seen in the preceding six quarters, with levels significantly higher than for the same period last year," Mr Jennings said.

Despite this, 75pc of agribusinesses in Queensland feel confident about their business performance over the coming 12 months, an increase from 66pc recorded in the same quarter last year.

SOURCE: Queensland Country Life