Source: Stuff
Stressed-out Manawatu dairy farmers have been seeking the help of rural support services in high numbers as they try to cope with low milk payouts.
The Rural Support Trust, which helps farmers in times of hardship,is the busiest it has been since the devastating 2004 floods.
Trust member Chris Wall said during the floods the trust helped hundreds of people with feed for stock and stock movement, as well as helping people cope with the stress caused by the high water levels.
“Now we are perhaps helping 20 to 30 people and mostly dairy farmers – they’re under pressure, with things such as financial analysis, legal advice or they might go to a counsellor or go away for a weekend,” Wall said.
“We work undercover, it is confidential. If people have to leave the farming industry – we try to help them exit with dignity.”
Federated Farmers Manawatu/Rangitikei sharemilker chairman Richard McIntyre said many dairy farmers and sharemilkers were feeling the pinch.
He said new sharemilkers had bought cows during last season’s high prices, and were facing tough times as the milk payout was less than many had budgeted on.
A sharemilker often owns cows and pays for milking costs, while sharing the milk income with the land owner.
“For some sharemilkers it has been very tough. It comes down to their circumstances. The volatility of cow prices has been huge and it has eroded their equity. A lot of sharemilkers are having to increase their overdraft on lower equity.”
McIntyre said one example involved the wife of a Raetihi sharemilkerwho had been forced to go with their children to live and work in Palmerston North at her parents’ home, while he was at the farm.
It was the only way they could make ends meet at the property, McIntyre said.
“There’s the financial stress, and then the personal stress of having to live apart.”
Wall said the trust encouraged people to get in touch.
He said some support people went door to door, but he thought many rural people would not admit they couldn’t cope.
“The trust waits until people contact us. Keep an eye on how you are, your family or your neighbours. we need to hear from people.”
Federated Farmers Manawatu/Rangitikei president James Stewart said there was a bit of a “gloomy” feel around dairying at the moment.
“We know there will be ups and downs in the industry, so don’t let it get you you down. Keep communications open with your bank, farm adviser and professionals that can help. Let them know what’s happening in your case.
“Remember real wealth comes from the provinces via exports and we are an export dependant economy.”
Wall said sheep and beef farmers were used to dealing with wildly fluctuating incomes and were able to cope more than some dairy farmers.
“But at the moment, beef prices are high, wool prices have lifted and lamb prices are about the same. So we are mainly seeing dairy farmers who have to cope with lower payouts. If payout are low next season, then there will be more dairy farmers needing help.”
In the meantime he said he doubted there would be many conversions from other farming to dairying with the milk price at rock bottom.
