On Wednesday morning on the Moore family's dairy farm at Lower Belford hay bought with those funds was being loaded up and donated to local farmers.

Taking the opportunity to talk about all things farming and the impact of drought were Singleton Square's centre team joined by representatives from Rural Aid.

The drop off and pick-up included approximately 100 tonnes of wheaten hay that was donated to 24 farmers

Late last year, buskers performing country music filled 20 Charter Hall shopping centres, collecting funds for drought affected Aussie farmers within the local communities.

Every dollar donated by shoppers in the 'Dam Good' drought relief campaign, was matched by Charter Hall, raising a total of $196,363.

All those funds have been donated to Rural Aid Australia through the 'Buy a Bale' initiative providing farmers in our community with much needed support.

For dairyfarmer Max Moore and this children Matt and Maxine the arrival of semi-trailers loaded with hay provided a break from the daily grind of milking and feeding 120 cows.

Max said a relative recently visited the property which fronts the Hunter River and was shocked at how dry the non-irrigated paddocks looked.

"He said it was the worst he had seen the place in many many decades," said Max.

A supplier to Saputo Max said the drought and low prices mean there is now a critical shortage of fresh milk and prices had increased.

But given the costs of production it was still an extremely tough place to be in and he wanted to thank Charter Hall and the community for their support.

"Every bit helps us survive," he said.

Dairy Australia's October Situation and Outlook report for the first quarter of the season shows record high farmgate milk prices continue to be weighed down by high input costs and a dry weather outlook.

Feed supply is forecast to remain tight with a dry outlook for the remainder of the year and drought conditions persisting in some regions.

Australian milk production declined 6.9% in the season to August as a result of cost pressures, low rainfall in some regions and reductions in herd numbers. Dairy Australia retains its forecast of a 3-5% decrease in national milk production to 8.3-8.5 billion litres for the full season.

"Australian dairy farmers have entered a season of record farmgate milk prices, however milk production has continued to contract due to ongoing high production costs and dry conditions in many areas," said Dairy Australia Senior Industry Analyst John Droppert.

"There is a mixed picture across the country. For many farmers in southern Australia, good early-season rainfall has provided a head start on pasture growth and fodder conservation, but those in drought affected areas further north are facing a second season with few palatable options."

Strong farmgate milk pricing is supported by buoyant international commodity prices (with subdued milk production in key dairy exporting regions and robust global demand) and intense competition for milk supply among processors due to reduced Australian milk production.

Higher retail prices have delivered value growth for all major dairy products in Australian supermarkets, mainly in private label and branded milk but also dairy spreads. Premium priced speciality products like health-style yoghurts and deli-cheeses have also experienced sales growth.

"This season's farmgate milk price will provide some farmers with the chance to make up some ground financially, however, high costs of feed and water and ongoing drought will continue to hold back profitability. Whilst these challenges persist, milk production is likely to remain subdued," Mr. Droppert said.

Dairy Australia Managing Director David Nation said the dry weather outlook for the remainder of the season was concerning:

"The outlook for continued dry conditions is likely to see ongoing pressure on feed costs. Conditions are favourable in some areas, but we're urging all farmers to monitor their feed plans and use the resources available via Dairy Australia's website to make informed decisions."

Greg Chubb, CEO Retail Charter Hall, said "We've seen firsthand what impact the drought has had on communities around Australia. Government aid and loans have been granted but more help is needed, and our 'Dam Good' campaign was a way for us to give back to those most affected whilst helping to create further awareness of the great work Rural Aid is providing to farming and rural communities."