Rural Family Support Trust chairwoman Dame Margaret Millard talks to dairy farmers at a Manawatu farm.
The trust that looks after farming families says the increase in the milk price has been great for farmers’ mental health, but it has not lowered the numbers needing their support.
Rural Family Support Trust Manawatu and Rangitikei chairwoman Dame Margaret Millard said the increase from $3.85 a kilogram of milksolids up 75 cents to $4.60 has helped farmers pyschologically.
“Although there has been the welcome increase, farmers are not out of the woods yet. The worst is yet to hit.”
Farmers are receiving a low interim payout for their milk, and she said that was the hardship throughout the season from spring until next autumn.
“Some dairy farming people are trying to support business. It is not just dairy farmers, but industries who support farmers…are feeling the pinch.”
Millard said many farmers were pulling back on any spending they could.
“People traditionally grazed out young stock – that is not happening so much. And people are not buying maize silage, so there is less being made. People have fewer cows and are not buying in any feed.
“All those things have an impact downstream, on sheep and beef farmers who grazed heifers and on contractors who put in maize. There is little maize, in fact I haven’t seen any.
“Many people are keeping it all on-farm. They have fewer cows and are growing their own supplementary feed.”
Millard said she said she knew of people who had left jobs on farms, and were not being replaced.
“And some people who had not been in the milking shed for years, have gone back, to save money.”
She said dairy farmers had stopped capital investment, such as building new dairy sheds, and increasing or improving races. Many were also only doing essential maintenance.
Millard said a few dairy farms had come on the market as people retired or sold up.
“So it’ll be interesting to see how they go.”
Federated Farmers Manawatu/Rangitikei president James Stewart said the increase had a positive impact on farmers.
“As well it is really nice to get a bit of sunshine. And the grass is growing. It all helps.”
Source: Stuff
