PGG Wrightson expects annual earnings to fall by as much as 27 percent as dry conditions on both sides of the Tasman erode prices.
The impact of drought on dairy farms was greater than Fonterra anticipated, with milk collection down 0.5 percent.
The Reserve Bank is "carefully monitoring" an already highly indebted agriculture sector after the recent drought in the North Island.
Milk Pride, facing 625 of charges of animal neglect, is an "exception, rather than the rule", says Federated Farmers.
Despite all the rain in many parts of the country yesterday, there are still areas in drought.
Farmers are hoping winter holds off for a few more weeks so pasture has time to recover after drought-breaking rain over the last few days.
The drought status covering much of the country is likely to remain in place until at least September despite recent rainfall.
Federated Farmers says people shouldn't underestimate the impact the drought has had on the farming community.
The fire ban in Auckland has been lifted following the return of rain to the region.
Rain has provided relief for some drought-stricken areas, but others remain in a precarious state, Federated Farmers says.
Farmers are hoping for a reprieve from the dry conditions as a sub-tropical low crosses over much of the country.
A survey of farm workers has found their average wage is now $5500 more than the rest of New Zealand.
Weather over the next few days should "put half a smile on farmers' faces", says meteorologist Daniel Corbett.
Rain has arrived in the north and south of the country, and is likely to bring enough moisture to severely dampen drought conditions nationwide.
Around 2000 drought-affected farmers got off their tractors yesterday to unwind and share their woes with one another.
The Treasury has reported strong economic growth last year but says the drought will have an adverse impact in 2013.
With the duck season just a few weeks away, there's dispute over whether the drought has led to a decline in the mallard duck population.
The drought gripping the North Island and parts of the South Island justifies spending millions on water storage, the Government says.
Federated Farmers says a rise in dairy prices won't be enough to offset the financial impact of the drought.
March was one of the hottest, driest months on record according to NIWA.
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