The advice followed the prediction farmgate milk prices would drop again this week in the GlobalDairyTrade auction, confirming farmers’ worst fears for dairy payout this year and next.
Experts agreed the single most important thing for farmers to do in the first instance was talk to their bank.
“When these sorts of things happen, people become stressed and worry,” AgResearch senior social scientist Dr Neels Botha, who leads joint AgResearch and DairyNZ research into farmer wellness, said.
“The best strategy is to go and talk to your bank if you think you will have financial problems or issues.
“If you don’t want to talk to them yourself, get someone to represent you such as an agricultural consultant or the Rural Support Trust.”
Botha said farmers stressed about their financial situation should talk to people they trusted.
“It’s also important not to drink too much, to keep getting exercise and to eat healthily.”
Neil Bateup from the Rural Support Trust said farmers should make sure they had budgets and cashflows in place for the next financial year and should talk to their banks early.
“The likelihood is farmers will need some bank assistance.
“The banks are keen to talk to anyone who feels they may be under pressure so they can develop a plan going forward – so there are no surprises for anyone.”
Bateup said workload had varied for the Rural Support Trust throughout the country, depending on regional issues.
The eastern South Island including Canterbury and Otago had been particularly busy because of the effects of drought.
“You should get some time off-farm and go and do something different. You need to keep yourself fresh and connected with people.”
Neil Bateup
Rural Support
“Milk prices are obviously very low and we’re anticipating workload for the Rural Support Trust will go up come spring time. The workload lifting and not much money in the system will put pressure on a lot of people’s systems.”
Farmers should phone the Rural Support Trust, freephone 0800 787 254 (0800 RURAL HELP), if they were having problems. Facilitators were available to provide advice and support over the phone and could go and visit farmers on the farm if needed.
“Our facilitators are not experts in everything but they can help people identify the issues, get the help they need and find a way forward.”
Bateup also encouraged farmers to connect with their friends, family, other farmers and local community.
“You should get some time off-farm and go and do something different. You need to keep yourself fresh and connected with people.
“During the drought, I know farmers would often hop in the car and go and see other people and see how they’re doing. That helps you get perspective, rather than staying engrained in your own little capsule. You get ideas and coping strategies.”
DairyNZ was advising dairy farmers should proceed into next season with caution, describing the current cycle in milk prices as very similar to the 2008-2009 downturn.
“In times of low milk price such as New Zealand is experiencing it is a case of survival firstly, through trimming costs and improving productivity,” DairyNZ economists Matthew Newman and Zach Mounsey said.
Farmers were encouraged to go to DairyNZ’s website and refer to the Tactics for Tough Times resources. Information included budgeting and benchmarking, looking after yourself and your staff and events on fellow farmers’ properties.
The events differed by area but many included gaining a better understanding of the economic outlook for dairy, learning cost-effective tactics from other farmers and hearing from rural professionals.
