Southern farmers in a bloody terrible situation
Apr 1st, 2008 | By admin | Category: EntertainmentFarm consultants predict cashflows will ease in June and July with the onset of winter putting more pressure on cash-strapped sheep farmers reeling from their third year of poor lamb returns.
However, only two farming families in West Otago and Balfour have applied for special support payments available to rural families in drought-stricken areas.
Southland Adverse Events Trust drought facilitator Peter Hook said the slowdown in cashflow would have a huge impact on farmers.
%26quot;Were in a bloody terrible situation,%26quot; he said.
Cashflows were expected to ease as farmers got rid of the rest of their works lambs and the milking season came to an abrupt halt at the end of next month.
However, Trust chairman Russell Falconer believed most farmers would be reluctant to ask for financial assistance.
%26quot;Farmers are proud people and they prefer to do things for themselves.
%26quot;They dont like Government departments meddling in their business, let alone ask them for relief,%26quot; he said.
Last week the Government announced that special support payments would be available to rural families in drought-stricken areas.
The payments, set at 75 percent of the applicable rate of the unemployment benefit, were designed to cover essential living costs only, and were not included as income for farm accounts.
Farmers must meet an income test, a personal asset test on on-farm assets, and a cash-asset test.
They must also evaluate the viability of continuing to farm, or have made a decision to sell their property.
Mr Hook said sheep farmers were having a particularly tough time on the back of three years of poor lamb returns.
Winter feed reserves were low and they would struggle to compete with their dairy farming cousins on price for the limited amount of baleage that was available.
Baleage was currently fetching around $100 a bale, which was about double last years price, putting it out of reach of some cash-strapped farmers.
Mr Hook said a mild winter would ease the burden and he prayed that would be the case.
%26quot;June and July are likely to be our worst months, but at the moment were getting reasonable growth and the stock are being fed okay.%26quot; Mr Hook said some farmers had got rid of their replacement ewe lambs and old ewes, which had eased the situation, but the shortage of capital stock would impact on next seasons production.
Federated Farmers Southland President David Rose encouraged farmers entitled to help to ask for it.
%26quot;We need to look at all our options and consider help.
%26quot;After three years of poor lamb returns some farmers have no reserves left.%26quot;
