Income dries up as drought bites
A handful of drought-stricken North Island dairy farmers stand to lose a third of their annual income because they have already stopped milking.
Taranaki, Manawatu/Horowhenua/ Rangitikei and Wellington districts are the hardest hit and were declared in drought at Christmas, but Northland and Auckland are suffering from the big dry as well.
Farmers from lower North Island west coast regions with long memories said the last time they had to move dry stock off their farms to find pasture was about 40 years ago.
‘‘They’re not earning income, which is the trouble,’’ said Rural Support Trust chairman for the Manawatu/Horowhenua/Rangitikei region, Chris Hall.
‘‘The cashflows of the farmers really suffering have become very tight, and there are one or two who have even dried off which means two or three months’ income that they’re not going to receive.’’
Hall said farmers faced a multiplicity of problems, ranging from lack of feed to pressure from banks.
‘‘A big problem is some farmers have used all their supplementary feed and that’s used normally in the winter. Because most has been fed now, we’ll have to try and source feed elsewhere.’’
Farmers from east coast regions, where rain has been more plentiful, had offered to take dry stock, but some west coast farmers were reluctant to send them to areas where they might be infected with the cattle disease Mycoplasma bovis.
The disease was detected in the North Island, in Hastings, for the first time last month.
Rural Support Trust co-ordinator for Northland and Auckland, Julie Jonker, said farmers were demoralised.
‘‘If you’re lucky you might get two good years, but we’ve had six really difficult years. It’s either been drought, floods, low payouts and people can only take so much before they say ‘what am I doing this for, I’m not getting ahead or making headway at all’.’’
Rain was forecast for northern areas but it would take weeks for pasture growth to occur.
The loss of confidence in dairy farming is supported by a recent Rabobank survey as well as recent farm sales data, showing a record number of properties on the market but few buyers.
Hall said farm buyers had paid high prices in recent years and they had overextended themselves.
He was concerned that people approaching their banks for easier terms were coming under ‘‘some pressure’’.