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Farm agreement launched for dairy businesses

Farm agreement launched for dairy businesses

Federated Farmers will launch its new and improved Herd Owning Sharemilking Agreement to dairy farmers tomorrow.

“This Agreement clearly navigates areas where farm owners and sharemilkers have had disagreements in the past,” says Andrew Hoggard, Federated Farmers Dairy Chairman.

“We are able to respond to industry concerns by updating and improving our contracts and agreements because we’re part of the industry.

“Many of our spokespeople, myself included, have been sharemilkers or are farm owners who have sharemilkers running our farms, so when updating the Federation’s contracts and agreements we’re well placed to ensure they’re up to industry standard, making life easier for everyone,” said Mr Hoggard.

Federated Farmers Sharemilker Chairperson, Neil Filer, explains that the Herd Owning Sharemilking Agreement is used in an arrangement where the sharemilker owns the cows and the farm owner owns the land and the milking plant.

“The most important change has been removing the ‘set off’ provision so withholding sharemilker payment will be in breach of the agreement. We’ve also raised the importance of health & safety, and drug & alcohol obligations by bringing them to the forefront of the agreement.

“There are a whole raft of changes here that’ll improve how the farm business operates, removing opportunities for complications and misunderstandings. We’ve even included a Dispute Resolution Flowchart, to show both parties what’s involved if things go wrong.

“Let’s face it, business arrangements can go sour, so it pays to have yourself covered whether you are the farm owner or the sharemilker, and our contracts and agreements are tested and proven in the industry,” concluded Mr Filer.

“There is now a greater clarity around dealing with both feed shortages and surpluses. Shortfalls at the start of a new agreement, shortages during the agreement and any feed surplus to the contract at the end of the agreement are now consistent with fairness to the parties’ respective costs” added Tony Wilding, Federated Farmers Sharemilker Employers’ Chairperson.

‘’This agreement now better focuses decision making on what’s best for the whole business rather than how the individual parties may be effected.”

Mr Hoggard says the objective here is to make simple, user friendly and affordable contracts and agreements that’re relevant to the industry.

“Federated Farmers Members can buy our new and improved Herd Owning Agreement for only $69 and non-members for $414, far cheaper than if you had a lawyer draft you one independently.

“Don’t shake on it, get yourself covered and give us a call on 0800 327 646,” concluded Mr Hoggard.


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