Primary Industries Minister Nathan Guy says farmers seem to be holding up well in the north of the country despite the dry conditions.
Mr Guy, who has been touring farms in Northland and Waikato, says that while many farmers consider themselves to be in drought, no one has asked for formal government assistance.
He says the high Fonterra payout is providing some buoyancy, and the main concern among farmers he met was whether rain would arrive during autumn and enable them to grow enough feed to get them through the winter.
"We've been in these situations before, if you think back to about April-May last year, moving into those winter months," Mr Guy says.
"Mother Nature responded very kindly and the recovery was very quick, and everyone's very optimistic that if we get rain - and there were a few tinges around - that certainly the pasture will respond and recover."