Federated Farmers’ grain and seed arm isn’t raising any eyebrows over a MAF monitoring report that paints a bleak picture of the arable sector.

The report focused on horticultural as well as arable industries, and revealed some optimism despite falling profits.

That confidence has largely bypassed grain farmers however, and Feds Mid-Canterbury grain and seed chairman David Clark says he’s not surprised.

"Optimism’s not a common word in the arable industry at the present. Our prices over the last two years have been forced down for cereals to well below the cost of production and it’s caused many, many arable farmers to exit the industry.”

Mr Clark says financial uncertainty is forcing many farmers out of cropping to more profitable sectors such as dairy.

“There’s 19 new dairy farms within Mid-Canterbury for the 2010 season and I understand that there’s already 22 farms booked to be converted next year. I would expect we’ll see rise to 40 or 50 by August 2011.”