The Wairarapa Times-Age has heard of dairy farms near Featherston and both north and south of Eketahuna that are either in receivership or under threat of sale by their banks.
However Chris Engel, Federated Farmers dairy chairman for Wairarapa, said this was not necessarily down to current low prices.
Fonterra last week forecast a payout of $4.25 for the 2016-17 season, up 30c from this season.
«When you have the first things happen, they could be things that were going to happen anyway. It’s when there’s a few more and the floodgates start to open,» Mr Engel said.
But he did say farmers were losing money under present conditions.
«Each month, we’re just earning less than we spend.»
Mr Engel said the dairy farmers’ «saviour» was lower interest rates of between 4-5 per cent. Otherwise it would be a perfect storm.
«We could be at 7, 8, 9 per cent, which we have been (most other years).
«We’ve got the small advantage of that cheaper money.»
Source: NZ Herald