There’s nothing more certain in farming than the fact nothing’s certain.
Curve balls can come from any direction any time, adding that extra dimension to businesses that might already be growing and changing year-on-year.
Mid Canterbury dairy farmers Tim and Megan Parsons get that – it’s why the equity partnership they’re part of with Tim’s parents is set-up to be robust yet flexible.
It’s also why opportunities are well-analysed and why the business uses technologies that can have a positive impact on the top and bottom line.
The young couple are in their ninth season lower-order sharemilking on Winchmore Dairies and have been able to ride out the low payout season because their own sharemilking business, Inspired Dairies, is now well-heeled enough to withstand short-term shocks.
Tim says that’s enabled them to maintain a standard lower-order sharemilking structure rather than shift to a hybrid contract that effectively limits how far milk income can fall but also creates a ceiling.
Providing the income price shock doesn’t carry on, they’ll maintain their contract structure as it is.
“If we can survive the lows we can capture the highs,” Tim says.
But if prices do stay low for longer he concedes they might have to look at changing the arrangement.
Tim and Megan began lower-order sharemilking for their equity partnership in 2007.
They earn a percentage of the milk price and pay all staff costs as well as farm dairy expenses and electricity.
Along with the milk payments they also earn income when a dividend is paid on the overall business’ profits.
Shutting off irrigators during the middle of the day when temperatures go over 28C could be considered as a water-saving option because ryegrass plants effectively close down at that temperature.
Information is power and walking the farm weekly to assess covers is an absolute must in Tim’s eyes.
He describes a workshop he attended about the time he and Megan began sharemilking as a pivotal moment in the farm’s productivity.
It was run by former DairyNZ developer Adrian van Bysterveldt and centred on pasture monitoring and interpreting the information.
“The biggest change to our system came when we moved to doing weekly farm walks. We saw a big shift in our production,” he says.
They build a feed wedge from the data collected each week and make grazing decisions based on it – where cows are going, which paddocks should be closed for silage, whether there’s an impending deficit.
While this season’s production targets and supplementary feed reduction goals are at risk from the pump breakdown, one factor that’s helped compensate somewhat has been the effect of a move to using short gestation length (SGL) semen last season.
Together with a decision to bring planned start of calving forward by two days to better match pasture growth rate patterns there’s been a significant payoff in extra days in milk.
They have a Jersey, Jersey-cross herd and last mating used LIC’s Forward Pack – Premier Sires for the first six weeks followed by five weeks of SGL semen and no bulls.
After 11 weeks mating they had a 9% empty rate and a 74% six-week in-calf rate.
At calving, the results of bringing the planned start of calving forward and the more condensed calving period thanks to SGL semen were obvious in the vat with an additional 12,000kg MS produced in August and September compared with the previous season.
This season they’ve made savings by cutting out CIDRs, keeping fertiliser to a bare maintenance dressing and using fewer casual staff in spring.
Megan has stepped in to take on a greater role with calf-rearing and Tim also had to increase his time in the farm dairy with one team member out with an injury for a few weeks during late spring.
They’ve run the farm with four permanent staff in the past but have three this season.
It’s a tough year to get through on a low payout and having other things go wrong such as the pump break down just makes it that bit tougher.
“You’ve got to stay positive though. I try to get along to discussion groups and other events and that helps. Staying informed is important and working with Dad helps – he’s a great support,” Tim says.
