Dairy farmers are unsettled when they hear the spot price of grain has fallen below their contracted rate, says Federated Farmers.
Last week, RNZ reported that wheat sold for $336 a tonne in September, while barley was selling for $317 a tonne.
But Federated Farmers arable industry group chair Guy Wigley said the vast majority of grain used as supplementary feed was currently being sold at a price contracted last year of about $400 a tonne.
He said some dairy farmers start to grumble when they heard the spot price of grain had fallen below their contracted rate.
"It only unsettles end users who all of a sudden think 'maybe I've paid too much if it's on a falling market'. You don't hear any grizzling from them if it's on a rising market, they don't mind that at all. It's just that you don't want people to feel as though they've paid too much and they haven't. That's where the market was at the time they did their contracting to ensure their supply for the season."