Some Farmers Are Taking On Additional Work Off Farm To Keep Up With Rising Interest Costs

Some farmers are taking on additional work off farm to keep up with rising interest costs. Federated Farmers dairy chair Richard McIntyre points out that while the price of some farm inputs such as nitrogen fertiliser, fuel and PKE are starting to ease, there is still a lot of stress amongst farmers, particularly those with higher levels of debt. He says many have come off fixed interest rates and the significantly higher interest payments are really starting to bite. Federated Farmers are hearing of farmers beginning to take on additional work off farm to keep up with their rising interest costs and Richard McIntyre warns that any drop in the milk price will exacerbate the problem. He says it is concerning to see that banks are reducing their forecast milk price. However, it’s the processors’ forecasts and the resulting change to the advance rates that will have the biggest impact, he warns.