KEY POINTS:
Southern farmers are giving away their horses for free, as the financial impact of this summer's drought takes effect.
But the Highland Horse Haven, which takes in abused and unwanted horses, fears many will end up as pet food because of the sheer number of horses being surrendered.
CEO Melanie Worthy said her organisation, which cares, re-trains and finds unwanted horses suitable homes, usually has 10 horses at any one time - but is now caring for 31 with another 11 arriving next week.
"Farmers are suffering and they're surrendering their horses because they can't make income off them," Ms Worthy said.
But the volume of incoming horses has thrown the Highland Horse Haven into financial turmoil.
Miss Worthy said she has just taken out a $20,000 personal loan to cover the lease on the 200 acres but said she needs to come up with a further $10,000.
"We're in a major panic now because we're all volunteers and we're all self-funded," Ms Worthy said.
The organisation makes money by selling the horses but with the on-set of winter, it is unlikely anyone will want to buy one soon, she said.
"One horse has come off the mountains and needs a big operation and that will cost $2000, so help," Ms Worthy said.
She said most of the horses that come to the organisation are in a bad way and are lean.
Ms Worthy's greatest concern was that farmer's were panicking and turning their horses over to pet food processors.
She said the public have donated $2000 to her organisation but more is needed.
Otago Federated Farmers president Richard Burdon said it comes down to farmers' responsibility.
"It's the economics of it, buying a bale of hay at 10 bucks a bale, some people don't want to be spending $1000 a year feeding a horse but that comes with the responsibility of ownership.
"If it is an animal welfare issue, then they need to buck their ideas up," Mr Burdon said.
He said conditions are worse in the Waikato and areas around Taupo and Australian farmers put up with droughts for several years.
Mr Burdon supports the Highland Horse Haven's work and said people can always call the Federated Farmers feed line.
"If in doubt, a bit of communication with the likes of Federated Farmers would help," he said.