Federated Farmers Sharemilkers’ Section chairman Richard McIntyre said he had no figures to verify an expectation that more farm movements this year would follow last year’s “stay put” financial conditions.
This season’s better milk price would have been used by most sharemilkers to pay off overdrafts and a repeat next season would reinvigorate career paths.
McIntyre himself was challenged by a student recently to name his long-term goals, only to realise and admit he had “forgotten them” in the struggle to survive.
“Now the mood among sharemilkers and contract milkers is much better and we can plan ahead again,” he said.
“Quite a few are moving this Gypsy Day but I can’t tell you whether it is more or less than usual.”
The sharemilkers section had asked dairy companies to participate in an annual reporting of movements between farms and the order of milk price split or contract milking.
The companies seemed supportive so he was hopeful regular figures in future would show up trends.
McIntyre agreed with one sharemilking family on the move from Northland to Taranaki that advertising for 50:50 jobs on Fonterra Farm Source website went on longer.
“Late in the season there were still jobs being advertised,” Glen Rankin observed after signing a new contract for a 145ha farm near Manaia in South Taranaki.
However, both men could not decide whether farm owners had left their run too late, more of them were looking, there was an excess of jobs because more sharemilkers were staying put or sharemilkers were being picky and prolonging the negotiations.
Glen and Trish Rankin, the 2016 Northland Share Farmers of the Year, and their four boys had already sent the young stock out to grazing and some of the 300 cows ahead to Taranaki.
Transport was costing $90/cow and the Rankins would spend more than $50,000 on the move.
They moved to Hokianga from Wairarapa in May 2015 with only 80 cows so the extra transport costs this time were a huge commitment.
Unfortunately, milk production was 10% down this season for weather reasons so that had offset the improved payout.
“But we have more confidence in the payout and we want to keep growing our equity,” Rankin said.
The cows were in good condition after a long period on once-a-day and the July 20 planned start of calving was traditional for South Taranaki, he had been told.
The Rankins would go back to twice-a-day milking in a 50-a-side herringbone.
McIntyre said he had heard lower order sharemilkers and contract milkers preferred to stay in contract positions, a continuation of the caution that developed in the low-payout seasons when so many variable order sharemilkers were hit badly financially.
They were also taking longer over due diligence, something the federation had advocated.
“When you get to where you are going, survey the whole farm and agree on the feed-on-hand and the pasture covers and write them down and get it signed off.
“During the house inspection take photos of anything that is not right.
“Three years of a contract is a long time and memories can be faulty when it comes time to go,” he said.
