Farmers worried as sales of cattle and sheep plummet

"We're in a world of pain ... and we need rain," Mr Thomas said.

Mr Thomas owns three farms with 1500 sheep and 500 cattle on his three properties at Manilla, Warialda and Bendemeer.

He said in the past year, he has seen prices for prime cattle drop from an average of $1900 to $700 for a head of the same top quality stock.

"I do feel for new entrants into the farming industry, they would be suffering," Mr Thomas said.

"Particularly people who sourced or bought stock when the [price] rise was on last year. They've definitely lost money."

Mr Thomas said he is still able to source feed for his animals but that he is unable to recover the cost after about a month of doing so.

"It's on a path to nowhere if we don't get rain or see a lift in prices," he said.

Wallamore Grading and Packaging owner Simon Ware told the Leader on October 4, that he has heard of some types of sheep being sold at the sales for about $2 a head, which was substantiated by Nutrien's Joel Flemming.

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There is also a slight oversupply of stock in the market, partly due to higher rainfall and decent seasonal conditions over the past three years, according to Meat and Livestock Australia (MLA).

MLA stats show lamb prices at the shops have fallen 9.5 per cent in the 12 weeks to mid-September, which is supporting a 14.8pc buyer increase at the cash register.

Beef, on average, is down 5.6pc and purchases are up 8.3pc, according to MLA.

Some local butchers, such as Thomas Penrose from Penrose Meats in Tamworth, are doing what they can to adjust the retail sale.

Mr Penrose said his buyer purchases prime new season lamb at the local sales and sends them off for processing at the abattoir for about $60 a head before it arrives in the shop.

"So, $100 for the lamb plus $60 to get it landed back into the shop. It's still definitely not a cheap venture for us," Mr Penrose said.

"... our four-quarter chops are down from $19.95 to $14.95, lamb back's are down from $18.95 to $12."

Mr Penrose said the price has dropped from an average of about $190 to about $100 to $110 for the type of lamb his business buys.

The combination of oversupply and drier conditions have some farmers worried they won't be able to afford to feed their stock if the cost of feed and other overheads, such as fuel, electricity and wages also increase.

It comes as the NSW Department of Primary Industries determines the entire Tamworth region to be drought-affected.

The Leader spoke with Scott McDonald, co-owner of McDonald Brothers Transport in Nemingha, in early October, who said the cost of hay had doubled.

Northern Tablelands MP Adam Marshall has called on the NSW government to "immediately initiate drought support measures to assist farmers and rural communities".

"Conditions are worsening quickly, some areas are already officially in drought and the outlook looks bleak, but we are still yet to hear anything from the government, or the Agriculture Minister, about what support will be available to farmers and rural communities," Mr Marshall said.

"During the last drought, more than $2.4 billion was provided via subsidies and rebates to farmers and rural communities to help them sustain their businesses and keep going."

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