Smaller scale New Zealand dairy farmers: long term plans and key challenges

Farmer wellbeing has been defined as “a dynamic process that gives people a sense of how their lives are evolving” (Nimpagariste & Culver, 2010). In order to support and enhance the wellbeing of farmers in New Zealand, the farmers’ goals, future plans and challenges to their plans all need to be understood. A particular group of interest is smaller scale dairy farmers. The average size of dairy farms in developed agricultural nations is increasing and New Zealand is no different. A high proportion (62%) of NZ dairy herds are smaller scale, milking less than 400 cows at peak. Their wellbeing, now and in the future, is important to the New Zealand dairy industry as a whole. Consequently, the aim of this study is to develop an understanding of smaller-scale dairy farmers’ future goals, plans and challenges so that recommendations can be made to enhance and support their wellbeing in the future. Farms who peak milked less than 400 cows were surveyed via telephone. A total of 346 surveys were completed, in Taranaki (n=103), the Waikato (n=144) and Northland (n=99). The majority of respondents’ were owner-operators (75%), male (67%), born and bred in a rural area (79%), and between 40 and 60 years old (57%). Overall, the mean farm size was 97ha, with 240 cows producing 86,789kgMS with 0.83 of a full time employee. Respondents’ had high (67%) equity levels in their businesses and a third (35%) had non-farming investments. Farmers’ most likely future investments were related to their current farming business, that is reducing debt to very low levels and increasing production by more than 10%. Based on farmers future plans and challenges reported and discussed in this study, it is clear the smaller scale dairy farmers would like knowledge and assistance in five key areas; succession, regulation and compliance, staff, technology and cash-flow/profitability. This report concludes with suggestions for each of these areas, which has the potential to maintain or increase the wellbeing of smaller scale dairy farmers in New Zealand. [Executive summary]DairyNZ Ltd, Ministry for Primary Industry (NZ

Farmer survey to study needs of small-herders

The business plans and personal requirements of small-herd dairy farmers are to be put under the spotlight as part of a survey being organised by Lincoln University Lecturer in Agricultural Management and Agribusiness, Dr Victoria Westbrooke, and Research Fellow, Dr Peter Nuthall

Drone use in on-farm environmental compliance: An investigation of regulators’ perspectives

Freshwater resources around the world are under increasing pressure from agricultural activities. As a result, regulatory frameworks around on-farm environmental compliance have become more complex. Consequently, farm plans which have been used in New Zealand to identify risks to and develop mitigation strategies for freshwater quality can be time consuming and costly to develop and monitor. Using semi-structured interviews, this study investigated the views of the regulators working in environmental policy and implementation on the use of drones to increase the efficiency of on-farm environmental compliance. Results show that drones can improve process robustness by providing an aerial view, and that they are quicker and safer to use on steeper contoured farms. However, there is confusion around the permissions required in order to capture footage, its ownership and storage, and who has access rights to the footage. This ambiguity in the implementation of environmental regulations can lead to uncertainty on the part of policy implementors around how to integrate drones in on-farm environmental compliance. In addition, positive relationships between farmers and compliance officers are needed in order for the benefits of drone use to be realised for on-farm environmental compliance purposes

Potential profit gains from improving pasture productivity on New Zealand South Island high-country farms

Soil acidity combined with low levels of key nutrients on New Zealand hill-country farms are limiting factors for legume establishment/growth. However, legumes are a critical component of these farms as they provide nitrogen and high-quality feed. A farm-systems model was developed to estimate the impact of targeted fertiliser and lime application, combined with sowing clover, on whole-farm productivity and profitability. A base model was developed that incorporated 17 years’ worth of Beef + Lamb NZ survey data for Class 1: South Island Farms. This base model was then used investigate two lime-application/oversowing models where part of the modelled high-country farm was targeted for improvement: (1) Conservative, i.e. 0.6% farm area; and (2) Aggressive, i.e. 2.8% farm area. Three scenarios to utilise the additional pasture grown were then investigated for each model by: (a) increasing ewe numbers; (b) increasing ewe performance (lambing percentage); and (c) increasing liveweight gain of stock. Scenario 2a, generated the highest profitability level (Earnings before Interest Tax and Rent, EBITR $58,870) above the base model but became less financially attractive when the two years required to build the maternal ewe flock were factored in. Scenarios 2c and 1b generated increases in profitability (EBITR) between$33,310 and $41,290 above the base model. Variation in product prices, production levels and time to develop the final farm-management system would also influence the productivity and profitability of the scenarios. Environmental aspects, infrastructure and staff availability would affect the suitability of the development for individual farming businesses

Waikato farmers plan for the future

In the 1990s, a small farm was considered to be 40 hectares. With high performance and moderate debt levels these farms were thought to have a good chance of survival. This was the basis of an article by James Allen in this journal in September 1998. Future options were suggested for these farming businesses, such as increasing productivity, moving to a larger farm, diversifying or eroding equity in the business. High performance small farms today, again with moderate levels of debt, could also have a good chance of future survival. Which future business option suits a particular farmer will depend on their own situation, and some may result in better financial and non-financial result

The extension needs of small dairy farmers

With the constant cost price squeeze, farmers with smaller farms must constantly consider their options to maintain their purchasing power. Some farmers will sell, others will buy extra land, some will sell and shift onto larger farms, and others will further develop their existing farms. Alternative strategies are also possible. Overall, farms in general are increasing their output. Enlarging the farm in various ways is a major factor in this rising production. With the increasing globalisation of marketing, price volatility also means farms need to have buffers through size economics

Small dairy farms, North Island - Prospects, challenges and change: A survey and analysis

This study looks at the small dairy farm problem in response to industry pressure and associated research funding (from DairyNZ through a small dairy farmer organization … Smaller Milk and Supply Herds Association…SMASH). The objective was to explore the problems, or challenges, resulting from being ‘small’ as seen by the dairy farmers themselves. The objective was also to relate these farmer defined ‘challenges’ to the farmers’ personal situation and attributes. It was believed this farmer data may well inform the final phase of the study in which data was collected to discover the information the farmers’ believed would be helpful to them in meeting the challenges. Conclusions should guide the actions which SMASH, and other extension groups, can take

Future farm management options for smaller dairy farms

In the last thirty years the size of the average New Zealand dairy herd has almost tripled (Dairy Statistics, 2013). Despite this growth, 36% of herds are considered small with less than 250 cows. It is important to develop an understanding of the goals, future business and farm management strategies of owners of small farms. In the Waikato region of New Zealand owners of small farms (n=13), were interviewed using a semi structured qualitative approach. The main research questions and scope for this project were: 1.1 To develop an understanding of the goals and objectives of small to medium sized dairy farms in New Zealand, 1.2 To describe the strategies that farmers plan to use to achieve their goals, and why farmers selected their particular strategies, 1.3 Within the strategy identified by individual farmers, where relevant, identify the particular farming system that the farmer wishes to use to achieve their strategy and to explore why the farmer believes that farming system is the optimum for their strategy. The farmers’ two key goals were flexibility and time for non-farming activities, and sufficient funds for the family and business. The business strategy was to generate a strong annual cash surplus and reduce debt to a low level by retirement. Then funds previously used to repay debt could be used to employ staff to milk the cows. Farmers’ future preferred farming system was one which could be managed by the family and a maximum of one staff member. Farmers didn’t specify a farming system, but were balancing workload, capital requirement and production/profit when considering any changes to their current farming system. The key lessons were that farm owners with small herds have objectives centred on time and sufficient cash for the family. They follow a business strategy that focuses on generating a strong cash-flow and debt management or minimisation and prefer a system that can be comfortably managed by a family and a maximum of one employee. The workload, capital cost and production/profit were all important factors when farmers were considering their future farm management system. This information will allow extension programs and commercial products and services to be tailored to the needs of owners of small herds

Business options and strategies: a study of small herd owners views in the Waikato, New Zealand

In the last thirty years the size of the average New Zealand dairy herd has almost tripled. Despite this growth, 36% of herds are considered small with less than 250 cows. It is important to develop an understanding of the goals and future business strategies of owners of small farms. In the Waikato region of New Zealand, 13 owners of small farms were interviewed using a semi structured qualitative approach. The farmers' two key goals were flexibility and time for non-farming activities, and sufficient funds for the family and business. The business strategy was to generate a strong annual cash surplus and reduce debt to a low level by retirement. Then funds previously used to repay debt could be used to employ staff to milk the cows. The key lesson was that farm owners with small herds follow a strategy that focuses on generating a strong cash-flow and debt management or minimisation. This information will allow extension programs and commercial products and services to be tailored to the needs of owners of small herds

Odour attributes and volatile chemical composition of milk produced in subtropical eastern Australia

Sensory attributes, in particular grassy odour, are important determinants of milk product acceptability in Japan. The effect of commercial farming system (n=8) and season (n=3) on the volatile chemical composition and sensory attributes, specifically grassy, mothball, cowy, sweet, creamy, sour and heated, of milk was investigated. Selected individual milk samples (n=5) could be distinguished by their volatile chemical composition, while the intensity of grassy odour was significantly higher in milk produced in spring compared to summer. Potential sensitive and specific chemical predictors (n=9) of grassy odour intensity were identified, using multivariate statistical methods