Although the theme of the three-day event was “Riding the Wave”, the question became the unofficial focus with other keynote speakers pondering it. Questions were also raised in many workshops showing the concern of farmers about young people who were struggling to get a foothold in the industry.
Kidd, of JMK Consultancy and New Zealand Dairy Woman of the Year 2013, said it was becoming her “soapbox”.
“Because of high debt levels, the 50:50 sharemilking system is no longer becoming the pathway to farm ownership that it once was. Farm owners are unable to sell their cows and still service their debt so the number of 50:50 sharemilking opportunities has dramatically decreased, but we still need a way for young people to take part in the industry. We need to replace 50:50 and we need inventive ways to do it.”
She suggested farmers look at their employees and see if there were ways they could invest in their futures.
“It’s a two-way partnership. If you allow them to be the best that they can be then they will be able to grow your businesses along with their own. We all want to exit the industry one day and we need people who want to and are able to buy what we have to sell.”
She also said farm employees should look at their employers and make sure they are working with people who could advance their careers.
“But you have to work at being the best that you can be so people will want to invest in you.”
She also asked what the next generation of farm owners would look like.
“The world they farm in will be very different from our own and they will need very different skills to work in it. Understanding risk and volatility and the knowledge of how to borrow money will be just as important as knowing how to grow grass.
“Farms will be larger and already there are five different farming systems. When I started there was just one – the Ruakura No 1 herd.”
She said larger farms would mean fewer owner-operated businesses, and knowledge of governance and structures would become important.
“And no longer will the bottom line be just about profitability per hectare, but also about environmental, sustainable, safe, and ethical practices when it comes to the land, employees, and to customers alike.”
Family farming businesses didn’t need to restrict themselves to family.
“Are we family farms or farming families? Are we leaving a legacy to the next generation?
“One of the biggest realisations I’ve had is how a board structure can benefit the family farm and support the next generation into farming. Good governance is a family issue for our dairy farms, just as it is an industry issue. We can all wear many hats – board directors, managers, and family members as long as we remember to take the right hat off at the right time. Family time is not business time and vice versa.
“Don’t be afraid to bring outsiders into your board meetings. They can add real value and everyone is better behaved around the table. No longer are people husbands and wives, sons and daughters, but partners in a business which is the way it should be.”
She said allowing young people to enter the industry would also provide dairying with its next group of leaders.
“We need to grow our business leaders of tomorrow and equip them with the skills they need.”
