Monday, 24 June 2013 09:36

Sharemilking a ‘great path’, but mind the details

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SHAREMILKING REMAINS one of the best pathways to farm ownership, says Federated Farmers’ sharemilkers section’s new leadership.

 

But due diligence is crucial for both parties, say Feds sharemilker employers’ head Tony Wilding and sharemilkers section chairman Neil Filer. 

Wilding, who farms in Tirau, says the sharemilking system has been a fantastic pathway to farm ownership for himself and remains so for many others.  

“Yet today I also see more ways to farm ownership,” says Wilding. “Farm owners and sharemilkers need to look to the future instead of lamenting the past.  As farmers, we need to evolve our businesses to match the changes in the wider industry, which is a terrific but challenging one to be in.

“Before sharemilkers or farm owners considering the sharemilking system enter into a business relationship, I spend a lot of time with both sides.

“Getting all the detail in sharemilking contracts is so important these days.  It is about due diligence so both are fully aware of where the costs and responsibilities lie.  Get it right and both parties flourish.”

Filer, a variable order sharemilker on a 700 cow property in Dannevirke, has  bought a 280 cow farm up the road, where he is employing a manager.  He is passionate about sharemilking and the role it plays in the industry.

“I’ve been through the Sharemilker of the Year [contest] and the New Zealand Young Farmer of the Year competitions but it was when I attended a Federated Farmers’ leadership course that my eyes fully opened to what needs doing,” says Filer.  

“I got involved because someone had to look out for the sharemilkers in Tararua where I farm.  I took on that role and have progressed up the ranks.

“The sharemilking system is evolving and we are mindful that pathways to farm ownership will change with it.  Yet sharemilking is generally a success because it is a proper business relationship.”

  Filer wants Federated Farmers to communicate the advantages of sharemilking because for the 2013-14 season in a high growth area like Canterbury, he believes there were only two herd-owning sharemilking jobs available.

“I also agree with Tony on the subject of due diligence.  Checking costs, obligations and assumptions before signing up for a sharemilking job saves grief later.

“I would also advise sharemilkers to talk with their accountant, banker, previous sharemilkers and employees of the person on whose farm they will be working. Use the Federated Farmers network to its full extent.

“Sharemilking is a business partnership and the more you know about the business and the personalities, the better it is for all concerned.  And, as I always stress to sharemilkers, if you decide to take up the offer, never leave the contract unsigned.”

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