Southern farmers 'in a bloody terrible situation'

Crunch time could be just around the corner for drought-affected southern farmers.

Farm consultants predict cashflows will ease in June and July with the onset of winter putting more pressure on cash-strapped sheep farmers reeling from their third year of poor lamb returns.

However, only two farming families in West Otago and Balfour have applied for special support payments available to rural families in drought-stricken areas.

Southland Adverse Events Trust drought facilitator Peter Hook said the slowdown in cashflow would have a huge impact on farmers.

"We're in a bloody terrible situation," he said.

Cashflows were expected to ease as farmers got rid of the rest of their works lambs and the milking season came to an abrupt halt at the end of next month.

However, Trust chairman Russell Falconer believed most farmers would be reluctant to ask for financial assistance.

"Farmers are proud people and they prefer to do things for themselves.

"They don't like Government departments meddling in their business, let alone ask them for relief," he said.

Last week the Government announced that special support payments would be available to rural families in drought-stricken areas.