Possible signs of better times ahead?
The latest ASB quarterly report suggests a more positive outlook for the primary sector compared with previous quarters.
ASB has trimmed their price forecast by 50c, but maintains dairy prices will increase over 2016.
The bank says Chinese economic concerns are spilling over into dairy markets, making the dairy price recovery slow and stop-start.
ASB still maintains dairy prices will move higher across 2016, but time is not on the side of this season's milk price, according to the latest ASB Farmshed Economics Report.
ASB rural economist Nathan Penny says that as a result, ASB has trimmed this season's milk price forecast by 50c to $4.10/kgMS.
"While we have trimmed our milk price forecast, we do anticipate dairy auction prices will move higher over 2016. With this in mind we maintain our forecast of $6.50/kgMS for the 2016-17 season," Penny says.
On a brighter note for farmers, a lower NZ dollar and interest rates are offering some respite.
"We forecast short-term interest rates to fall over the next six months. With inflation set to remain very low we expect the Reserve Bank to cut the OCR twice this year," Penny says.
The NZ dollar is also doing its best to increase farmgate returns. After ending 2015 above $US0.68, the NZ dollar has fallen as low as $US0.63 at one stage in the early New Year.
"We expect the New Zealand dollar to range in the low- to-mid-60s over 2016," says Penny.
Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.
Shipping disruption caused by Houthi rebels in the Red Sea has so far not impacted fertiliser prices or supply on farm.
The opportunity to spend more time on farm while providing a dedicated service for shareholders attracted new environmental manager Ben Howden to work for Waimakariri Irrigation Limited (WIL).
Federated Farmers claims that the Otago Regional Council is charging ahead unnecessarily with piling more regulation on rural communities.
Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.
OPINION: We have good friends from way back who had lived in one of our major cities for many years.