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Wednesday, 12 March 2014 16:29

Good pay-offs from those one-off opportunities

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IN AN area prone to summer dries, Mangaiti, near the Te Aroha town boundary on the Paeroa road, is where Jarrah Sheehan first went share milking. Now he and his wife Sheree and family are making rapid progress.

 

They now control a farming operation of 600 cows on adjacent properties and are on track for a record 275,000kgMS.

“When I decided to go farming I had a career path in mind. I associated with top farmers. Then opportunities presented that I grabbed with both hands, and with a lot of hard work and a certain amount of stress we are where we are today,” says Jarrah.

He had always liked farming but with a high academic record he left Te Aroha College to study civil engineering at the University of Canterbury. At the end of his first year he worked the summer vacation for a local sharemilker to raise money for his second academic year.

Midway through that year he realised that finishing his degree would entail a debt and a low starting wage. “Whereas if I went farming I would be earning as I was learning and I could see a career path.”

He started work for Andrew Archer, Te Aroha district, with 360 cows, and enrolled for the one year dairying diploma course at Waikato Polytechnic.

Next he did a one year stint with Ken Heron, another local farmer who saw potential and encouraged him. 

“Ken was great in that he let me run the farm while keeping an eye on me so I was able to put ideas into practice. He was and still is a great mentor and started a lot of good habits as he showed me how to farm.”

Near the end of his second year Sheehan was considering going to Ireland to play rugby and was told by Heron to compile a list of why he should go and more importantly why he should stay. He stayed.

The next opportunity came during a late part of that season: a 50:50 share milking job. It was at Mangaiti with a herd of 300 cows. He had savings of $20000, far short of the $300,000 he estimated he needed.

“Then the farm owner Brian Evison stepped up as guarantor for a bank loan and after a bit of scrambling to find a herd, on June 1, 2001 I started 50:50 share milking.”

In his first season he passed the farm’s best production of 78,000kgMS by 2000 and after four seasons his top production was 110,000kgMS.

“The next challenge was that Evison was looking at exiting farming and he wanted me to stay.” He agreed to lease the farm with Sheehan required to buy Evison’s Fonterra shares. “I remember the day I signed: it was December 1, 2005 and we got married December 3.”

In May 2006 the farm directly across the road was withdrawn from sale late in the season and the Sheehans were offered the chance to 50:50 share milk on it with a herd of 250 cows as well as staying on the Evison property. More scrambling ensued as they found a herd and staff, in their first season exceeding that farm’s best production by 5000kgMS.

“It was a no-brainer as it was so close and with two staff I was able to manage both properties.”

Then in June 2007 they got the chance to buy a third of the property where they had the second contract, owned by David, Lindsay and Geraldine Swan. Raising the finance was made easier by the Swans allowing their remaining share of the farm to be used as security. Evison was still looking for exit options. So with the property in two sections he agreed to sell one and lease the other on which he built a new home.

To finance this purchase Sheehan formed an equity partnership with his parents who sold their house in Te Aroha and relocated to the farm. “Dad didn’t mind as he was five minutes closer to the golf course.”

Then in June 2013 they were able to buy the remaining part of the Swan farm again assisted with some vendor finance. 

On the west side of the road they own 76ha and lease 44ha. This is rolling contour and has a 26-aside herringbone shed and is managed by one permanent worker. 

On the east side they have a 94ha flat farm prone to flooding by the Waihou River. This is also managed by one worker and has a 25-aside herringbone shed. 

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