Fonterra has revised down its forecast Farmgate Milk Price -- reducing the midpoint by 20 cents, to eight-dollars-30 per KG of milk solids.
It comes ahead of another expected rise to the Official Cash Rate on Wednesday.
The Country's Jamie McKay says with a lower pay-out, and rising costs and interest rates, many farmers will no longer be making money.
He says it's going to be a tough winter -- with rural towns and businesses hit the hardest, as farmers reduce their spending.
