Saturday, April 20, 2024

Letting go and loving it

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Waikato farmers Morris and Linda Barlow have approached farm succession intentionally, making sure it has been well-planned and there are no surprises. They told Glenys Christian it was up to their children to make their own choices.
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Morris and Linda Barlow have never taken for granted the opportunities and independence they received in their early farming career. So a priority for them has been to ensure this heritage could be passed on to their own three children through positive moves at the right time.
Morris was born and raised in Auckland, the son of business owners, but his interest in rural life and a career in farming started through frequent visits to his grandparents’ farm in north Auckland.
After four years at St Kentigern College he completed a year at Flock House Agricultural Training Centre near Bulls, Rangitikei. Following his graduation, and uncertain of his future moves, Morris took a “holiday” job on a Waikato dairy farm at Horsham Downs. This became a four-year stint and during this time he met Linda, “the girl next door”.
After they married, Morris and Linda moved to Te Kowhai to a sole-charge, 29% sharemilking position.
“We arrived with modest savings, a Morris Minor car, six calf buckets … and big dreams,” they say.
After two years, the opportunity arose to move to Gordonton in a 50:50 sharemilking role on a farm recently bought by Linda’s parents, to give Morris and Linda an opportunity to establish themselves. While the farm was set up as a dairy unit with a 10-bail walk-through dairy, they say it had been well-exploited by a succession of drystock graziers in the past. There was poorly maintained infrastructure and depleted pastures. But Linda’s father, a very experienced farmer and land developer, was quick to recognise the potential of the property.
Morris admits “it was a bit of a scramble” to secure a Rural Bank loan to buy their first herd of 180 cows and move on to the 67ha property in 1967. They still live on the farm almost 50 years later.
The early years were tough and often frustrating.
“There weren’t many paddocks and so many rushes that if the cows lay down you couldn’t see them,” Morris says.
“We contoured one paddock at a time.”
Hard work, determination and careful management soon transformed the farm’s deficiencies into a viable dairy operation. In 1973 Morris and Linda were able to purchase the farm out-right. It was during these years that their three children joined the family and they also established Fermanagh pedigree Jersey cattle stud.
In 1980 the opportunity arose to purchase a 32ha block of land 2km away. Morris and Linda’s intent was to use this land as a runoff for young stock. However, because it was an established dairy unit with an eight-aside herringbone dairy and with a potential 29% sharemilker knocking on the door, the decision was made to buy a herd. The farm increased in size when an adjacent 16ha property was purchased in 1986.
By 1989, Morris and Linda’s son Graham was ready to start work on the home farm.
“There had never been any doubt about his aspirations to be a farmer,” Linda says.
“He was virtually out of the cradle and into gumboots.”
In the same year daughter Jenny married David Macdonald, another keen young farmer. Before long, they moved on to the 48ha property as 29% sharemilkers.
Morris’s long-standing desire for a runoff block, spurred on by Graham’s enthusiasm and energy, led to them buying a block of land at Raglan in 1994. This was initially only accessible by a tidal causeway but three years later an adjacent property was bought, giving road access to the now-400ha farm. If Morris and Graham were looking for a challenge they felt they had surely found it.
The next decade was a period of consolidation for Morris and Linda. Both Graham and David were each developing their own farming styles, and while both were passionate, conscientious and competent it was becoming apparent their personalities and family circumstances were determining their future career paths.
In 2000 Morris and Linda felt they needed to make proactive decisions that would have an impact on the entire family. David and Jenny had purchased their herd and were operating fairly independently as 50:50 sharemilkers while raising three sons of their own. Graham, by this time married to Rebecca, had bought the herd and the couple were starting a family. The Barlows’ second daughter, Carolyn, was making her way as a business manager in the health sector. So they felt the time was right to action a farm succession plan.
The young couples had proven their intent and abilities so it was time for them to take control of their own businesses. And that meant living by the consequences of their decisions. After much discussion and professional consultations, it was agreed that Morris and Linda would sell both farms into trusts; Jenny and David chose to call theirs Trust Glencree while Graham and Rebecca claimed Fermanagh Land Trust as theirs.
Morris remains a trustee of both trusts and he and Linda receive income from interest on loans, Government Superannuation and some small investments. They aimed to make the distribution as fair as possible between the couples so they each ended up with similarly viable propositions, even though there were different degrees of equity in the farms.
“It’s more about what you make of the opportunities rather than what you are given,” Morris says.
He continued to enjoy the Raglan farm but as time went on, and with the couples more focused and intent on their own properties, he found managing the large property single-handedly was an increasing challenge. When an unsolicited buyer offered a not-to-be-refused sum, Morris and Linda knew it was time to sell, even if somewhat reluctantly.
Proceeds from the sale allowed them to buy a smaller 32ha runoff just seven minutes’ drive from home and helped Carolyn and her family into a freehold home in Hamilton with on-going help as needed. Morris and Linda were also able to establish a new home for themselves in Gordonton.
Graham and David run totally different farming operations.
David and Jenny’s farm system is largely pasture-based. Over recent years, they have had the opportunity to increase their 48ha by buying an adjoining 16ha and leasing neighbouring land to provide a milking platform of 74ha for their 280 cows as well as 6ha used for growing maize. Replacement young stock are run and grass silage made on a 28ha leased runoff neighbouring the property. A limited quantity of palm kernel is fed as well during autumn and winter in a Redpath herd shelter built three years ago.
A key management factor is a condensed spring calving spread, with a mean calving date being 10 days from planned start of calving. They try to achieve 65% of their annual production before Christmas.
Graham and Rebecca have run their farm on a high-input system for the past 10 years, supplementing pasture with home-grown maize, silage, molasses, mineral supplements, dried distillers grain and palm kernel fed on a feedpad. Straw delivered from Manawatu is used for rumen development. The farm has produced 180,000kg milksolids (MS) in the recent past but with the current payout, herd numbers have been reduced so less feed is needed. With a Fonterra winter milk contract, calving is predominately in March with a small number calving in late spring to keep the milk production curve as flat as possible.
Graham has retained the Jersey herd although selected CRV Ambreed semen is used to produce larger framed cows. The current average herd weight is 440kg/cow. Morris says he is relaxed about Graham not wanting to carry on his Jersey stud.
“Just because I had pedigree cows didn’t mean he had to carry it on,” he says.
“That was my life – Graham is more of an entrepreneur.”
That’s clearly seen in Graham’s business side-line marketing Farmmates, a prize-winning farm management app he designed. A radical initiative was Graham’s decision to install four Lely robotic milkers. This involved not only converting his existing 40-aside herringbone dairy to accommodate the machines but also redesigning fences and raceways to allow for free stock movement. Graham achieved all this almost single-handedly in time for the March start of the 2014 season.
“I was apprehensive about the robots but never negative,” Morris says.
“I could see Graham was keen so I didn’t want to stand in his way.”
Now, well into the second season, the results speak for themselves. Production has increased and the information and data provided is invaluable.
Morris readily concedes if he had stayed in control of the farms, these outcomes would never have happened. “Why would I want to be an anchor?”
Over his years of farming experience and involvement in rural life he’s become keenly aware of the need for intentional planning for the future.
He’s made a few observations from the choices and outcomes other farmers have made regarding their families and futures.
“They’ve many times proven frustrating, sad or even divisive with far-reaching effects for those involved,” he says.
He and Linda were particularly keen to avoid any situation which could cause problems in the future.
“I’ve seen too many situations where fathers won’t let go,” he says.
He believes a lot of farmers are reluctant to lose control of their businesses and the decision-making. They are apprehensive about farm succession planning.
“Letting go is not easy, but it has to be an intentional decision,” he says.
“It takes courage to stand by and let others take control. Fathers may also be concerned they won’t have anything to do once the farm is handed on.”
For Morris and Linda, retirement hasn’t been an issue.
They had a range of options, but with rural interests at heart and with encouragement from their family they have stayed on the farm.
They’ve now established a large, immaculately kept garden around their new home. They regularly enjoy hosting groups of gardeners, often brought by the busload to Fermanagh Gardens.
Morris enjoys managing the farm runoff on a daily basis.
“It keeps my hand in farming and gives me a purposeful interest,” he said.
“Living here I can be as connected to the farms as I want to be.”
The families get on well together. While they maintain independent operations and different farming systems, they’re very willing to help each other out as the need arises. And from time to time, they even turn to Morris for advice.
“We are blessed to be living nearby, to share in the joys and challenges in the lives of our children and grandchildren,” Linda says.
“We enjoyed and appreciated the privilege of being independent in our early years so now it’s their turn to determine their choices.
“It seems you spend the first stage of your career working hard to invest in the future, and the latter stage working to dispose of it.”

FARM FACTS

Location:    Gordonton, Waikato
Owners:    Fermanagh Land Trust – Graham and Rebecca Barlow
Area: 67ha, 32ha runoff
Herd: 300 Jersey cows – predominately autumn-calving
Production: 150,000-180,000kg milksolids (MS)
Dairy: Four Lely robotic milkers
Supplements: Home-grown maize silage, barley straw, palm kernel, dried distillers grain.

Owners:    Glencree Trust – David and Jenny Macdonald
Area: 64ha and 16 ha leased equalling 80ha with a milking platform of 74ha and 6ha in maize
Herd:  280 crossbred cows, spring calving, Breeding Worth 141, Production Worth 167
Production: 100,000-106,000kg MS
Dairy: 20-aside herringbone
Supplements: DairyNZ system 3, home-grown maize silage and palm kernel.

Three factors to keep in mind

Morris and Linda Barlow consider themselves stewards of their assets, rather than possessors, so farm succession planning is essential for all concerned.
While Morris concedes every situation is unique, he considers the keys to decision-making in this area are:

  • A positive, pro-active mind-set and attitude and willingness to let go.
  • Consideration of family circumstances.
  • Fairness – not necessarily equality – to all who share in the family heritage.
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