"I realise these can be stressful times for rural families and they need to know who to turn to for support."
Regional Federated Farmers dairy chairman Bryon Osborne said this would take pressure off but most of all farmers wanted rain to get the grass growing.
"It's good news but it doesn't mean a lot to the average farmer."
They were losing money daily.
Five farmers from Rerewhakaaitu had totally dried off meaning profits would be down and on-farm spending skyrocketing as they eased pressure on stock, Mr Osborne said.
Unless there was substantial rainfall soon more farmers would follow suit, he said.
"That is it for the season for most of us. I think by the middle of March the number drying off will double."
He encourages those struggling to seek the help offered.
As a result of the drought and more on-farm spending, farmers would have less money which would have a "flow on effect" on local economies, Mr Osborne said.
"Rotorua needs the money farmers generate but we don't have it so we can't spend it."
Meanwhile, he invites local farmers and their families to attend a farmer-organised support day on Saturday at the Reporoa Domain between 10am and 3pm where Bay of Plenty Rural Support Trust chairman Derek Spratt will speak to them. There will be a barbecue and games for the children.
"It's to support each other ... we are all in the same boat."
Regional Federated Farmers provincial president Neil Heather said he was relieved to hear a drought had been declared as it was a tough climate farmers were working in.
"This is good news. It recognises there is an adverse effect going on at the moment."
He encourages farmers to make contact with accountants because provisional tax was paid on the previous season's income and they could now make an application for this to be changed.
Meanwhile, Mr Spratt said the Government's announcement would result in those struggling receiving financial help for living expenses.
"What it boils down to is if you don't have sufficient income off the farm you will qualify for help."
Tax relief is also being offered.
Depression was another issue for farmers to deal with, he said.
Some farmers in the Rerewhakaaitu area had lived through the drought of the 1970s and were supporting others, Mr Spratt said.
"Fortunately there are still a few old farmers around who have been mentoring our younger farmers through this time ... Potentially suicide is an issue.
"We hope that families will look out for each other - keep an eye on each other and ring if they need support. The big thing is not to bottle things up. Forget about your pride. Step it aside and ask for help."
Rotorua MP Todd McClay said assistance offered would bring much needed relief to farmers.
"It is recognised that we are now beyond what is a normal dry summer and into an extreme climatic event."
He also strongly encourages farmers to make use of financial help available.