Federated Farmers is putting a more positive spin on the negative forecasts for farming.
Analysis by the Ministry for Primary Industries analysis predicts dairy farm incomes will drop by 20% this season with pretax profits more than halving.
The ministry is forecasting a 6% fall in sheep and beef farm incomes and a 15% profit reduction.
Federated Farmers president Bruce Wills acknowledges the current season will be tough for farmers and that some farm businesses are likely to fail.
But he says the outlook is not as dire as some commentators have suggested.
He points to a price recovery in recent global dairy trade auctions, beef prices holding steady and wool prices also gaining ground.
Mr Wills says the medium-term outlook is still bright.