DairyNZ: Strong payouts offset high farm costs
The dairy sector is in a relatively stable position, with strong milk price payout forecasts continuing to offset ongoing high farm costs, according to DairyNZ.
Early preparation is important, as is clear communication with the farm team regarding plans and expectations.
Careful consideration must be given to animal movements, and all farm equipment and machinery should leave the farm in a clean and disinfected state to manage health and biosecurity risks.
Set up for success
Ensure sharemilker / contract milker contracts are signed by both parties and a farm inspection with new farm owner, incoming and outgoing sharemilkers, farm manager, farm advisor has been planned.
Determine staffing needs for the new farm, start recruiting for required staff and ensure signed employment agreements are in place, alongside signed service tenancy agreements for any employees who will live on farm.
Ensure anyone coming onto the farm hasn’t been overseas in the past seven days to reduce the risk of introducing exotic organisms, especially if they have been travelling to countries with foot and mouth disease (FMD) and have been in contact with FMD-susceptible animals (e.g. farmed or wild cattle, sheep, goats, pigs, deer, llamas, alpacas).
Communicate regularly with the people on existing farm and the people who will be on the new farm about plans including key dates, and information. Ensure staff have enough time to be prepared, pack and clean in the weeks leading up to moving. If necessary, adjust rosters and hours of work.
Get in touch with farm insurer well before the move - there might be more things to discuss. It’s a good idea to know the physical address, building details, any plant or machinery details, and the details of sharemilking or contract milking agreement if applicable.
Contact utility providers (e.g. power, internet, etc) and ensure disconnection and reconnection on the right dates. Take and record final power meter readings for all houses at both properties.
Farmer owner responsibilities
Ensure employees leave houses clean and tidy. Complete a house/s inspection for any maintenance required on current farm by end of April and arrange for any repairs and upgrades required. Check house complies with healthy home standards.
Complete a final house inspection with existing tenant (sharemilker and/ or employees) as soon as house/s are vacant.
Consider whether drug testing of house/s will be required.
Confirm with departing and new tenants their departure and arrival times so there is no cross over between parties.
Check with insurer on obligations in terms of inspections and what, if any, impact this could have on insurance cover.
Sharemilker/Contract milker responsibilities
Ensure own house and employees’ house/s have been left in a clean and tidy state to the standards agreed in the contract.
Consider whether drug testing of house/s will be required.
If yes, arrange contractors and discuss with farm owner.
Complete house/s inspection with employees and then farm owner as soon as house/s are vacant, and complete house/s inspection prior to moving in on new farm.
Immediately discuss any issues with farm owner, agree a plan and document this.
Contract obligations
Ensure all body condition score (BCS), pasture cover targets or supplements on hand will be met as per the contract on takeover date. If they are not going to be met, have a proactive conversation with the other party as to what arrangement can be made to compensate.
Obtain third-party advice if required to reach an agreement.
Contract third-party to measure surplus/deficit feed inventory and quantify if required.
Article- DairyNZ
