Few likely to seek support payments

Few Otago farming families are likely to seek the Government support payments available to those in drought-hit areas.

While parts of Otago have been exceptionally dry, Otago Federated Farmers president Richard Burdon said he had not had contact with or been told of anyone facing extreme hardship.

The Government yesterday approved rural assistance payments for eligible farming families in Waikato, Bay of Plenty, Taranaki, Manawatu, Wanganui, Marlborough, Canterbury, Otago and Southland.

It has also extended the availability of rural assistance payments to farmers on the North Island's East Coast, which was hit by drought last year.

The payments, 75% of the applicable unemployment rate, were to cover essential living costs.

To apply, applicants had to meet an income test, a personal asset test on non-farm assets and a cash asset test.

Mr Burdon said while regions traditionally reliable in summer, such as South Otago, were particularly dry and farmers there were under pressure, northern areas appeared to be the worst affected.

Other parts of Otago were experiencing typical dry summer conditions, but life had been made difficult by a cold, dry spring, meaning little surplus grass for winter supplements.

Mr Burdon said winter brassica crops should yield well, but cash-strapped sheep and beef farmers were struggling to compete with dairy farmers for any available stock food.

This summer's drought has been estimated to cost farmers $1.24 billion in lost income and farmers in Otago and Southland more than $100 million.

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