THE final Young Dairy Network event of 2022 saw attendees head to the Newton family farm at Princetown, where the topic of the evening was succession planning, and ‘Stepping Up’ into the dairy industry.
Sam and Amy Newton’s 850-cow farm provided the perfect location for this important topic, as earlier in the year they completed the purchase of the business from Sam’s parents, Bruce and Lynne Newton.
After working off-farm for several years, Sam returned to the farm with Amy, and soon began growing equity – using stock bonuses in lieu of some wages. This led to the two families entering an equity partnership agreement. This formalised all of the process and was transparent to all stakeholders.
Initially at a lower level, the equity share changed significantly in 2022, when Bruce and Lynne decided to step further back from the running of the farm. This gave Sam and Amy the opportunity to fully purchase the stock and plant part of the business. It was a little earlier than originally planned, but having increased assets by growing cow numbers, they were able to secure a loan for the balance, and pay market rates for the stock and machinery to Bruce and Lynne.
Sam and Amy now lease the land from Bruce and Lynne, but have full ownership and control of the business. It is a business that now milks 850-900 predominantly Holstein cows. This has grown over the past 30 or so years since Bruce and Lynne moved to Australia from their native New Zealand.
The cows are seasonally calved, the heifers starting in mid-January, with cows calving from late January through to early April. The pasture-based system is complemented with a feedpad and some summer crops.
The heifers and any smaller stature cows are milked through a second dairy on the property, located a couple of kilometres away. This system has been in place for several years now and allows the young cows to settle in easily. Along with ensuring they are getting access to all their nutritional and health requirements without being pushed around by older cows.
A keen focus on animal nutrition and making sure the cows are always well fed sees the herd average well over 600kgMS per cow per year.
Vet and farm consultant Chris Hibburt worked with the Newtons through their succession journey, and facilitated this YDN event. As well as discussing the path the Newtons took, he explained the other options available to step up into dairy farming.
One of the critical reasons for success with the Newton’s succession is the open and organised discussions between the two parties. Everyone is onboard with the decisions being made, and all information is on the table.
Another important factor is the fact the Newton business is a healthy one; Sam and Amy can buy out the business with confidence, knowing that it is profitable.
This was Chris’ final workshop presentation for WestVic Dairy before his well-deserved retirement. It brought down the curtain on a distinguished career where Chris has had a significant influence on the industry both locally and further afield. Getting youngsters into dairy and encouraging farmers to back good people is something Chris has been passionate about for many years. With thanks to Matt Wood, WestVic Dairy.
