The $9 billion that Fonterra estimates its dairy payout to farmers will inject into the New Zealand economy is being described as an enormous injection of cash, particularly at a time when the outlook looked grim.
But there are fears that it will see a postponement of any cut to relieve interest rates.
The dairy boom is already offering its material benefits to other industries.
Manawatu based CB Norwood has been importing and selling tractors for the long haul. It's general manager, Tim Wilkes, says that its performance currently is as positive as any time in its 60-year history.
Tractor sales are up by a third, a lift attributed to dairy farmers making the most of a successful run, and extending its benefits to their local communities.
Westpac economist Doug Steel says retail sales in the rural areas are up 7% on the same time last year, compared to the growth in cities, that has only improved by around 1%.
"Farm values are up 50% in a year. It's certainly generating a lot of activities in the rural areas."
The Real Estate Institute says Friday's news will add confidence to an already buoyant market.
Its figures show dairy farms are in hot demand. 163 were sold during April alone this year, 45 more than the same time last year.
In the past ten months, agricultural investment company Myfarm has bought eight properties for syndication, with a total worth of $90 million.
"Dairying has been a great farm investment over the past 15 years. Whenever we get a good payout, it reinforces some of the fundamentals - the world's short of food and we have a tangible investment base in land." Myfarm's Andrew Watting explains.
The payout is up around $4 billion up on last season, giving the whole economy a much needed boost.
Steel says such an enormous injection of cash has got to stimulate activity.
"It should cut and offset some of the negative factors like the slowing housing market, the impact of high petrol prices and the like."
The big question now is whether the payout will mean the Reserve Bank Governor will wait longer before cutting interest rates in order to keep a lid on inflation.
The answer to that question varies between commentators.
ASB Bank believes there could be a delay in cutting rates until after September, but thinks a cut could still occur before Christmas.
Westpac, however, is holding to its prediction of no interest rate cut until March 1009.
