Sharemilking agreement now available

Chief executive Graham Smith and Dairy Policy advisor Ann Thompson promote the 'new and improved' Herd Owning Sharemilking Agreement in Wellington.

Finally, the new and improved Federated Farmers' Herd Owning Sharemilking Agreement has hit the shelves.

I say 'finally' because it has been a bit of a mission. It has taken many hours of sitting down with sharemilkers, farm owners, consultants and lawyers, going through various scenarios of what happens on farm.

We wanted to make sure those areas where disagreements had occurred using the old agreement were dealt with satisfactorily. And, that it was set out in a logical manner so farmers would understand it and we're satisfied.

All the information that needs to be filled in by each party is easily found at the front. This means that parties can easily look up during the term and remind themselves of what they had agreed to.

Things like maximum and minimum cow numbers, or the amount of feed that is to be left on the farm by the sharemilker at the end of the term.

The main part of the agreement directs on what needs discussed and agreed on and we recommend both parties get specialised legal, accounting or farm management advice before signing up.

This agreement is all about getting the best for the farm business, not just about the individual parties.

Some of the improvements to the Herd Owning Sharemilking Agreement include:

• Health and safety and the drug and alcohol obligations have been brought to the front of the agreement.

• The 'set off' provision has been removed so withholding of the sharemilker's payment will be a breach of this agreement.

• Information on the cows being brought on to the land and the understanding that the quality of the herd remains similar throughout the term of the agreement.

• Provision for power cuts and the possible need for generators.

• We have also included more certainty around what to do if there's too little feed at the beginning of the season when the sharemilker first comes on farm, if there's a shortfall during the season and if there's a whole heap of feed left at the end of the season.

• Drought is not included as a force majeure and this was decided on after much consideration. We didn't include it because drought is not something that happens quickly (like flood, earthquake or fire) but is something that can be managed by both parties assessing the situation together and making a plan to bring the farm through.

• States what happens if the owner wishes to sell the land.

• The dispute provisions align with the Variable Order Sharemilking Agreement 2012. This reflects more acceptable timeframes and is backed by the Courts in general law.

• A Dispute Resolution Flowchart is included as a guide, to show both parties what is involved if things go wrong. Both parties can see the value of sitting down at the kitchen table to find a solution to a problem. We know that parties who go down the arbitration path don't always get what they think they deserve and instead end up out of pocket.

The review was carried out by representatives from the Federated Farmers Sharemilkers' Section and the Federated Farmers Sharemilker Employers' Section and written by Federated Farmers' legal partners, DLA Phillips Fox. We had submissions and input from the Arbitrators' and Mediators' Institute of New Zealand (AMINZ), farm consultants, mediators and legal advisors.

What does it cost?
Price - GST inclusive
• Members $69.00
• Non-members $414

How can you buy the agreements?
• Call 0800 327 646 and place your order
• Online at our shop: http://shop.fedfarm.org.nz