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Home / Rotorua Daily Post

Farmers optimistic about investment

Rotorua Daily Post
28 Jan, 2015 04:00 PM3 mins to read

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A recent purchase of a second farm, a low dairy payout and a dry summer have not dented the long term optimism for Reporoa farmers, Art and Yvonne Maandonks.

The couple moved to the Longview Rd property eight years ago after buying their first farm at Waiotahi, Eastern Bay of Plenty.

Art had emigrated from Holland 16 years beforehand seeking a career in farming, and met Yvonne a year later while working in the EBOP.

Two years ago they bought a second farm at Sangro Rd, Reporoa.

"It's been a good investment," he said during a DairyNZ discussion group day on the "home" farm at Longview Rd recently.

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About 30 local farmers plus industry representatives from DairyNZ, Environment Waikato, Fonterra, Top Cow, Westpac Bank and RaboBank attended the three-hour discussion and farm visit, co-ordinated by DairyNZ's Moana Puhe.

Many from the group commented positively on the couple's "sharp, finger- on-the-pulse" management style which produced an efficient cost structure by operating both farms as one unit, not separately, and the "tidy" look of both properties helped by extensive new fencing.

"We didn't want to sell our home farm and move to a bigger farm and when the Sangro Road property came up 2kms up the road it was a good opportunity to take," Art said.

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"We were looking to purchase a runoff but this dairy unit came on the market so we decided to purchase that instead."

In future the couple are planning on buying a runoff to support both dairy farms and increase numbers on the dairy units. "There is obviously a lot more work in having two farms but we have no regrets."

Currently Paul McKay manages the Sangro Road farm for Art, and there is a relief milker on the payroll.

Next season the couple intend to employ another full-time staff member.

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Art has definite plans to develop the two properties to maintain a profitable and cost-effective operation, without diminishing his love of farming.

"Keeping it simple" is his mantra.

"We want to adopt management strategies to create profitable margins but not at the expense of our lifestyle or the environment," he said.

The home farm at Longview Rd has an effective dairying area of 85ha, and Sangro Rd has 70 effective hectares, with 5ha in lucerne, 3.5ha in rape, and 1.5ha in kale winter crop. It carries 245 cows, at 2.9 cows/ha stocking rate, while Sangro Rd carries 181, at 2.6 cows/ha.

Both farms have been using 16-hour milkings during the summer.

Calving begins on both properties around July 18.

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The couple have invested much time and money into Sangro Rd including scraping tonnes of blackberry from a 5ha conservation reserve block and replanting in lucerne.

Nitrogen application on both farms will almost halve this season from 145kg N/ha to 85kg N/ha.

Art recently worked with DairyNZ on a sustainable milk plan, one of around 600 farmers in the Upper Waikato to use the facility to calculate how to reduce nitrogen leaching. "A few minor changes were made, such as sending 90 cows away for seven weeks in winter when there is more leaching because of the wet ground," he said.

The couple also invested in a slurry tanker to spread effluent more evenly and across a wider area than what could be achieved by a traveller. Gross revenue from both farms is targeted at an estimated $6156 a hectare for the 2014-15 season, almost a $2000 decrease from $8806 gross revenue total last season. The operating profit from both farms will be slightly under $2000/ha.

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