The East Otago meat and wool farmer was headed for one of the worst years financially in 29 years of farming, and the difference between what he received for a prime lamb and the retail cost was one reason for his second successive cash deficit.
‘‘This has been one of the worst seasons for farming since [wife] Daphne and I started farming on our own account in 1979. In general terms, there has been an increase in our farm input costs, and the returns on the products we sell have not kept pace,'' Mr Begley said.
Prime lambs have, to date, sold for $52-$53 each, similar to last year, but the dry weather meant he had to sell more lambs than usual in store condition for $34, about $10 a head less than last year.
Prime lamb prices were too low to keep pace with rising costs, he said.
He could not quantify the extent of the loss this year, except that it would be as big as he had reported.
‘‘We will make a loss. We are one of the ones making a cash deficit and it is comparable to one of the worst years during Rogernomics in the 1980s.''
Greater equity in his land provided security, but Mr Begley said he had few options other than to cut costs on fertiliser, employ less casual labour and reduce personal expenses.
Part of his farm would receive no fertiliser for the second consecutive year.
Despite his difficulties, Mr Begley remained optimistic, saying an international shortage of lamb and the quality of the New Zealand product should result in higher prices.
‘‘The fundamentals for meat are good and it's a case of hanging in there until it flows through.''