A farming leader says a predicted income drop for sheep and beef farmers is worrying for those trying to catch up after a run of tough years.
The Meat and Wool Economic Service is forecasting lower profits for farmers, despite improved lamb prices, a continuing strong market outlook and farm cost increases levelling off.
The service is blaming the negative forecast on the exchange rate.
Federated Farmers Meat and Fibre chair, Bruce Wills, says that's disappointing for farmers trying to recover from the past couple of years.
He says on-farm cost increases have been well above average over the last two years.
Mr Wills says although the projection is that increases will be more subdued, there have been a lot of cost pressures on farmers in recent months.
