Pooling resources way to go for farm families
“In this way, economies of scale can be introduced, as well as much better and more professional farm practices. Everyone can make more money and be more efficient if farmers are clustered and are encouraged to work together to buy in bulk, share machinery, to cooperate in the provision of forage, and to rely on one another for slurry management, waste management and so on.
Now, his plans take a further step forward, with Teagasc publishing a detailed action plan to encourage farmers to enter into formal collaborative arrangements with other farmers.
These include formal farm partnerships; share farming arrangements, contract livestock rearing, long term land leasing arrangements, producer groups and small co-operatives.
Teagasc Farm Structures Specialist Ben Roche said; “The main benefits of collaborative farming arrangements for farmers are economic, skills and social. They provide the possibility for farmers to increase financial returns through achieving greater scale at lower capital costs while reducing costs which are duplicated on each individual farm. They provide a pooling of skills and labour and can present an opportunity to move away from the “one-man farm’ model.”
What farmers have most to gain from working with their neighbours?
>>Dairy farmers potentially have most to gain, expanding their milking platforms and improving labour efficiency through partnerships, or contract rearing of replacements. Partnerships in general can improve lifestyles and management, by improving the management skills mix and decision sharing. With collaborative arrangements, expanding farmers can avoid having to take on employees.
What will be the next step by Teagasc?
>> This year advisers in eight areas of the country will, in addition to normal advisory work, provide intensive support to farming collaboration. They will bring interested farmers together in discussion group formats, and assist farmers with the information and necessary paperwork for working together. There will be intensive support for partnerships in Waterford/Kilkenny, Tipperary, Cork East and West, and Cavan/Monaghan. The focus will be on share farming in Wicklow/Carlow/Wexford, on long-term leasing in Laois/Kildare/Meath/Louth, and on contract rearing in the Galway/Clare area.
At seminars in the spring and summer, in discussion groups, and in general, collaborative farming will be highlighted and promoted.
How can collaborative farming reduce the business risks in drystock production?
>>Drystock farmers who get involved in contract dairy replacement rearing have the guarantee of a monthly payment. No investment in cattle is required, because they remain the property of the dairy farmer.
Do disease eradication rules reduce the scope for livestock farmers to work together?
>>In my experience, the Department of Agriculture can be reasonably flexible.
Disease eradication is managed by DVOs and is subject to EU legislation. But only about 3% of farmers are restricted due to TB. Farmers must be sensible, avoiding disease blackspots, for example. Two clear tests are needed before taking in cattle for contract rearing, the sensible thing is to test on each farm, and to test the heifers at least 120 days before they are due to return to their home farm. That way, there is time to cope with a disease breakdown which could result in the dairy heifers calving down on the contract rearing farm. In such situations, if there are real problems, the Department are prepared to deal with them on an animal welfare basis.
Could livestock farmers working together eventually pave the way for them to form co-ops like the dairy co-ops?
>> Producer groups are one of the collaborative farming arrangements we are promoting.
Sheep farmers have set up producer groups like the Connemara Hill Lamb and Ring of Kerry Quality Lamb groups.
These small co-ops help farmers get better prices.
The US experience is that groups of 20 to 30 farmers get together and also have bigger federated co-ops for help with marketing and branding.
Producer groups could help farmers who feel they are price takers, and they could potentially evolve into bigger co-ops.
Or groups could rear animals to a certain stage, and have them finished through a bigger co-op with facilities for fattening.
What are the first steps for farmers in collaborative farming arrangements?
>> Farmers should be very businesslike in their approach. The details should be well teased out and documented, and the operational procedures formulated clearly. Collaborative farming arrangements should have clear procedures for dealing with any potential disputes and also have sensible exit strategies.
