October 2018
Welcome to the October edition of the NAKI NEWS
Contract Milkers
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Matthew Herbert
Provincial Sharemilkers' Chair
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Since the mid-1990s there has been a trend of hiring contract milkers to run dairy farms.
This option can make a lot of sense for a farm owner who is wanting to step back from the day-to-day operation, but still keep control of the overall farm system and herd.
It can also be a good option for those looking to step up to self-employment and progress through the industry.
There are many aspects to a successful partnership between the farm owner and contract milker.
One very important issue that is the source of many disputes in these relationships is the financial rewards to the contract milker.
A good starting point is to remember your contract milker should make more money than they would if they were an employee. According to the 2018 Federated Farmers Remuneration Survey, the average salary package for a farm manager in Taranaki was $70,700.
You then need to add on a premium to reflect skill, experience and time off. A suggested starting point for this premium would be $12k - $20k, depending on farm size, responsibility and control of the farm system.
There must also be a reasonable allowance for farm and business working expenses: motorbikes, fuel, staff wages, shed chemicals and other items covered in your contract agreement.
There is the important issue of what you expect from a ‘working couple’ on farm, and how many labour hours it realistically takes to run your farm at the standard you desire. It is very important to value this labour and remember contract milking isn’t a ‘buy one, get one free’ arrangement where the ‘partner’ does unpaid work – as an industry we are above this practice.
If your farm requires one full time contract milker, plus additional labour provided by the ‘partner’ at 40 hours a week, the remuneration offered to a working couple needs to reflect the additional hours at a fair market value.
As a starting point you should be looking to remunerate a full-time working couple to the level of approximately $120 - $130,000 a year. This allows them to build their own equity and continue progressing through the dairy industry and follow the traditional pathway New Zealand is famous for.
If you would like any advice on employing a new contract milker, or renegotiating your existing arrangements, give your local Federated Farmers team a call.
Keeping a wary eye on the weather
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Donald McIntyre
Provincial President
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Weather plays such a big part of our business, we want enough rain and warmth, to grow the grass coupled with enough fine spells in-between to get our work done, and keep people in town happy. So we are always looking skyward to check what we are in for and to plan our day, week, month, or should that be that nowadays we get out our cell phone or computer and check out the predictions which you need to interpret for your area. We can’t change it, unless by climate change, so we as farmers build strategies to cope with whatever comes our way, sometimes those strategies work, other times we have to keep evolving and modifying the plan to get through. As people go through times that are challenging and life changing they need some help to get themselves through, which is where the Rural Support Trust people can help, be a listening ear or friendly face, and they are only a phone call away 0800 78 72 54.
So what will the next part of the season hold for us? Who knows? But if you have a strategy in place and ready to go you will be in a better place to cope with whatever nature throws at us. These strategies need to be easy to implement, relevant and adaptable. Plan early for best affect, and wish for an idyllic spring/summer, rain only at night, every week, and not too much – four to five fine days in a row for hay making, the beach or cricket, dreams are free, so let’s wish for best ever product prices as well so all our efforts are worthwhile.
Congratulations
We are proud as punch here at Taranaki Federated Farmers -
our very own
Nick Brown, Jessie Waite and Matt Herbert have been named finalists
for
the New Zealand Young Farmers Excellence Awards. Well done you three. |
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Out & about with Taranaki Federated Farmers
A great day was had in Stratford celebrating the one-year anniversary of the Dairy Apprenticeship. Employment Minister Willie Jackson spoke on the importance of investing in our trainees. Farmers and apprentices took the time to mark the occasion as well.
A special mention to Taranaki’s 2018 Share Farmer of the Year and 2011 dairy apprentice, Owen Clegg for sharing his six career tips:
- Find good employers – who develop your knowledge and skills. Owen’s first employer is his biggest mentor within his business today.
- Set SMART goals – have them on display to stay on track.
- Studying – Hollie (Owens partner) is currently doing her fourth paper as part of her Primary ITO diploma.
- Give everything a go – every attempt is a learning curve.
- Stand out from everyone else – by ticking off the above.
- Take a break to recharge.
Visit the Federated Farmers Aprenticeship Dairy
website here
Employment Seminar
Taranaki Federated Farmers and Govett Quilliam presented an Employment Seminar recently, which covered off fair pay, the 90-day trial, fixed term contracts and answered a lot of questions for those in attendance.
It was great to see a mix of dairy, sheep, beef, sharemilkers and farm owners.
If you have any questions about your contracts or need some help, call our 0800 327 646 for legal advice.
You can also order your contracts through the Taranaki office, or
online here
On the Road
Craig Sole
Territory Manager
Remuneration Report Availability
The 2018 Remuneration Report has just been released and it is available free to members as a PDF copy.
It covers the latest 2018 farming salaries, covering Dairy, Sheep/Beef and Arable, It shows salary bands, data on hours, accommodation, and term of employment etc.
Call 0800 3237646 to obtain your free electronic PDF copy for members. Be informed and up to on this important issue to make your business successful.
Taranaki Crop Competition
The Taranaki Federated Farmers Crop Competition is back! You can enter your Fodderbeet or Turnip crops now.
Entries must be in by January 25, 2019.
Thank you to our event sponsors Corteva and Farmlands.
For more information,
email or phone 06 757 3423.
Pictured are Barry and Anne Orchard. The South Taranaki dairy farmers won the Fodderbeet category and had their efforts recognised at the 2017 Taranaki Federated Farmers annual general meeting.
NOTICES
Taranaki Ballance Farm Environment Awards
Taranaki farmers – now is your opportunity to enter the Ballance Farm Environment Awards. Right now entry numbers are low and with just over a month left to go until the closing date, this is your chance to give it a go. Every year brings different challenges and you might feel you’re not ready, but it’s important that we continue to improve and take opportunities to learn and try new things.
The BFEA Awards give you the opportunity to:
- Benchmark your farming and growing business with others.
- Receive independent feedback from a team of agri-professionals.
- Promote the many great sustainability initiatives happening on farms.
- Share your own great farming story with the rest of New Zealand.
Register online in just 10 minutes
click here
Contacts
For a list Taranaki Federated Farmers Executive visit our
webpage
Thank you to our provincial sponsors
