Ballance Agri-Nutrients has fast-tracked its 2014-15 rebate and dividend payment to help cash-strapped shareholders during what is being described as ''extraordinary times''.
The co-operative will today begin its distribution of an average $60 per tonne, seven weeks ahead of its normal payment schedule.
The low dairy payout had many dairy farmers facing the winter months with limited cash flow, while drought, then storms and floods, had hit sheep and beef farmers hard in many districts, chairman David Peacocke said.
The rebate, averaging $55.83 a tonne, along with a 10c dividend per share, meant a total distribution to shareholders of $76 million, or 94% of its $81million gross trading result.
While returns to shareholders varied according to tonnages and product purchased, a fully-paid up shareholder buying 100 tonnes could expect $6000.
Rural Value national manager David Paterson said there was a ''reasonable expectation'' a drop in dairy farm incomes would lead to a reduction in the sale price of dairy farms.
''We are noticing a definite change in sentiment following the latest GDT auction and, over the past few months, we've witnessed a significant decline in the number of farm sales recorded,'' Mr Paterson said.
The projected pay-out was now below the cost of production for most operators and there was anecdotal evidence of pressure on some farmers to sell before their financial situation deteriorated further.
Purchasers were also holding off making investment decisions until there was a clearer picture of what was happening in the global dairy market and were waiting for distressed sales to occur to see what happened in the rural property market, he said.
In Otago-Southland, there had been a decline in activity with fewer number of sales over the first six months of 2015 than during 2014, but there had been no significant decline in prices.
Spring would be the ''telling time'' for a lot of dairy farmers but so far there was only one report of a forced sale in Southland, he said.
DairyNZ chief executive Tim Mackle called on dairy farmers to cut unprofitable production from their systems, saying it was now a necessity for many farmers to ''do more than just shave costs''.
It was ''extraordinary times'', with Open Country Dairy's milk price forecast under $4kg of milk solids and all indicators showing Fonterra would be forced to lower its forecast next week.
Assuming a milk price of $4 for the average Open Country Dairy supplier, that meant a potential deficit of about $250,000 for the year ahead, Dr Mackle said.
Removing unprofitable production from systems was good for individual farm businesses and would send the market a signal that New Zealand farmers would not produce marginal milk at a loss.
Federated Farmers sharemilker employers section chairman Tony Wilding said sharemilkers urgently needed to go through partial budgets with their farm owners.
Open and honest discussion about what costs could be cut or shared differently would help both parties' bottom lines in the long term, he said.
He was concerned some farmers would ''go to ground'' in the tight times and not ask for help.
''There are people out there who can help both sharemilkers and farm owners, sharing ideas, talking about farm systems and helping with re-budgeting.
''That starts with other farmers in the community and also the Rural Support Trusts around the country,'' he said.
