15 Apr 2013

Sharemilkers advised to plan for new obligations

6:45 am on 15 April 2013

Sharemilkers who will be moving farms at the end of the dairy season are being advised, because of drought conditions in many places, to be aware of their contract obligations to leave enough feed supplies behind.

Traditionally any change over takes effect on 1 June.

Under most sharemilker contracts, they are required to leave a specified amount of pasture cover and feed supplies for the new sharemilker coming on to a farm.

Federated Farmers sharemilkers' section chairperson Ciaran Tully said it is very important that sharemilkers discuss the feed supply with the farm owner and the new sharemilker coming on, long before the changeover.

He said they need written management plans in terms of how to manage both businesses, as well as working out what will happen in a range of scenarios, such as whether the farm gets 50mm of rain or not.

Mr Tully said it's also important that sharemilkers discuss the financial implications with their bank or financial advisor.