Friday, March 29, 2024

Taking to the Hills

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Poverty Bay hill country farmers Hamish and Paula Newman have broken with tradition and expanded into dairying. Anne Calcinai discovered why. Hamish Newman doubts sheep and beef returns will ever lift high enough, for long enough, to turn the industry around. The former Gisborne-Wairoa hill country farmer of the year has done what some dry stock farmers vow never to do and what others might be seriously considering – bought a dairy farm. “Sheep and beef farmers work bloody hard for a small amount of money,” Hamish said. “We keep clinging to a hope that one day it will come right but we don’t do anything to change the structure of the industry.”
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Hamish is not quitting dry stock farming. He and wife Paula will continue living on and running their 530ha Brookfield Station at Motu, an hour’s drive north-west of Gisborne.

“For us, a sheep and beef farm is still the best place to bring up our family,” Hamish said.

The farm runs 1500 composite breeding ewes and bulls for finishing. This will alter as it provides some support for the dairy farm, Rimu Hills, located just 18km away south of Matawai village.

Hamish has farmed at Motu for 19 years, initially buying Brookfield in partnership with his brothers before taking sole ownership.

Resting in the summer sun.

“We’ll keep the sheep and beef farm. It won’t be as profitable as it was as it will play a support role for the dairy farm.”

He wanted to avoid sacrificing performance on one farm to benefit the other, but while the milksolids payout was high, they could afford for the other farm to break even.

Bull finishing numbers might reduce from 400 to 200 to run stock from the dairy farm and Hamish had already cut surplus silage at Motu to feed the dairy cows.

“There are so many good synergies between the two farms.

“It saves us some money as a dairy farm, having the farm at Motu.”

Both farms are fairly summer safe and very cold during winter. Sharing the same climate also avoids wintering cows on warmer country, only to return to Matawai for milking in August right in the thick of winter.

Hamish said dairy farming was very much about figures and structures. He enjoyed both.

“We see the figures every day – we see when things have gone wrong and when things have gone right.

“It is a machine, that’s what you’ve got to remember.”

The milk tanker travels from Opotiki. In peak times the milk is taken to Edgecumbe but Hamish is not charged or penalised for the long distance.

Gain versus cost 

Hamish and Paula Newman did a lot of work around budgets before taking the plunge and buying Rimu Hills.

They spent a lot of time working with the bank manager on various models and budgets. Fonterra was also very helpful.

Based on fairly average milk production Hamish said the dairy farm could earn five times the amount than if it was operating as a sheep and beef farm but costs were also much higher.

Everything had an extra zero on it, including the bills.

“When you get an up in dairy it’s a huge windfall and you have the ability to pay off a huge chunk of debt,” Hamish said.

“When you get an upswing in sheep and beef you get it for maybe one year to 18 months. By the time you buy yourself a new car or bike, that’s gobbled up any extra income.

“That’s not enough in the big picture but it’s given everyone that ‘warm fuzzy’ to carry on for another 10 years until the next upswing.”

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