New Zealand's Federated Farmers has reported that 11.1 per cent of its dairy farmer members felt pressure from their bankers over their debts in early February, up from 7.6 per cent in November.The survey showed the prospect of a third consecutive year of loss-making milk payouts in 2016/17 is concerning New Zealand banks, who have supported farmers with seasonal lending and other loans over the last year despite heavy losses. "So far we've been pleased with the support of banks and their long-term view of the dairy industry, but when you're talking about one in ten farmers feeling the squeeze that's a worrying statistic," Federated Farmers Dairy Section Chair Andrew Hoggard said.Hoggard called on the Government to take diplomatic action to pressure Europe to stop subsidising its dairy farmers, who increased their production five per cent in November from a year ago despite the slump in prices.Finance Minister Bill English told reporters in Parliament the Government had no plans to take direct action to support farmers, but that Agriculture Minister Nathan Guy was in close contact with the banks and would discuss the situation with them in the next couple of weeks."This is a situation that has changed. It has got a bit more concerning and so on our behalf the Minister of Agriculture is getting an update on where it's up to," English said.Dairy prices have fallen 15 per cent this year and economists are forecasting a third consecutive year of payouts at or below NZ$5 a kilo. Break-even levels are estimated to be around NZ$5.40 a kilo.