Sharemilking payment model has merit but awaiting review says Federated Farmers
Federated Farmers has been concerned for some time at the reduction in herd owning sharemilking opportunities and possible impact on the industry’s future sustainability.
We encourage and support the development of new business concepts that will potentially make sharemilking more attractive and resilient as an industry.
The development of the variable rate payment option for herd owning sharemilkers has some merit, with Federated Farmers party to discussions relating to this option over the past year.
We are aware this is being trialed by MyFarm and are awaiting results to see if it can be easily implemented on-farm and whether it has fair, equitable outcomes for the farm owner and sharemilker.
If this variable rate payout model is shown to improve the sustainability of sharemilking at low milk prices and deliver a fairer return to landowners at a high milk price, then it can be judged to have merit and be explored further.
Federated Farmers has an industry standard herd owning sharemilking agreement for the purposes of delegating business and succession. Should the payment model be adopted it will become an additional option within our sharemilking agreement.