Hamish Flett: Sharing changes a big improvement

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Focusing decision-making on what is best for the whole business rather than individual parties will change attitudes and behaviour for the better

Many dairy farmers watching 3rd Degree would have been left with a warm fuzzy after the GlobalDairyTrade (GDT) results were made known.

It has been volatile time in the market, with dislocated European milk pushing prices flat.

A lot of dairy farmers will be seeking some stability right now and Federated Farmers' new and improved herd-owning sharemilking agreement is providing some much-needed reassurance.

Removing the "set off" provision, which in the previous agreement had allowed the withholding of sharemilker payment, will now be in breach, which is great for everyone.

In Waikato one of the more important changes in the agreement is the shared cost of making silage.

With this cost-sharing arrangement agreed at the start of the season, sharemilkers and farm owners will have more certainty. It will enable sharemilkers to fully use their pasture, which is the cheapest feed source and forego making silage when worried about the cost.

Under this agreement, the situation of the farm owner and sharemilker waiting until they run out of grass will see them splitting the palm kernel bill as agreed to at the start of the season. It will also make the farm owner think twice about demanding a sharemilker cut their silage.

I believe the new agreement will change the attitude and behaviour of both parties for the good of the farming partnership and both businesses because it now focuses decision-making on what is best for the whole business rather than how the individual parties may be affected.

Hopefully, a surplus of pasture will now be seen as a blessing and not another cost.

Any type of farming is a long-run thing and you have to take the rough with the smooth. Improving how the farm business operates by removing opportunities for complications and misunderstandings is good for everyone. They've even included a dispute resolution flowchart to show both parties what's involved if things go wrong, because let's face it, business arrangements can go sour so it pays to have yourself covered whether farm owner or sharemilker.

Federated Farmers, Dairy Women's Network and DairyNZ are running a travelling Eyes Wide Open seminars, which teaches sharemilkers, contract milkers, farm owners, rural professionals and interested parties how to negotiate a fair sharemilking and contract milking contract.

It's important to know what you are getting into before you sign a contract. Getting that win-win for both parties is also good for the whole business.

At the end of the day any farmer should want what is fair and reasonable for both parties. I hear all too often about owners and sharemilkers quibbling over a few dollars.

Sharemilkers, if you don't want costs, go and be a farm manager. And farm owners, if you don't want costs, lease your farm.

The herd-owning sharemilking agreement is really positive for farm owners and sharemilkers alike, a fantastic improvement.

Speaking of improving, the Dairy Industry Awards is a great one for it. These awards are a great way to boost your business skills and profile and to lead the industry. Entries this year open on October 20.

• Hamish Flett is Federated Farmers Waikato Sharemilker chairman.