For many aspiring farmers, the road to farm ownership can feel overwhelming. With multiple pathways available, understanding the best fit for your skills, financial position, and long-term goals is crucial. DairyNZ has developed a Decision Tree for Career Progression, providing a structured approach to evaluating options like contract milking, sharemilking, equity partnerships, and lease arrangements.
Choosing Your Path: Factors to Consider
Each pathway in dairy farming requires different levels of financial investment, management responsibility, and risk. The key considerations include:
Equity Levels: Your available capital greatly influences whether you can enter farm ownership directly or need to explore interim steps like contract milking or sharemilking.
Risk Appetite: Some farmers thrive on business risk, while others prefer steady income streams with lower exposure.
Collaboration vs. Independence: Farming partnerships, syndicates, and equity agreements require strong working relationships, while options like leasing provide more independence.
Long-Term Goals: Do you ultimately want full ownership, or are you open to collaborative models such as syndicates and equity partnerships?
Exploring the Options
1. Contract Milking This is a common first step, offering a balance between business ownership and employment. Contract milkers receive a set payment per kilogram of milk solids produced, with costs such as feed and farm expenses generally covered by the farm owner. It provides valuable experience managing a herd and business responsibilities without significant capital investment.
2. Variable Order Sharemilking This model allows sharemilkers to earn a percentage of the milk revenue while covering costs such as feed. It offers higher earnings potential but comes with greater financial responsibility.
3. 50/50 Sharemilking A traditional stepping stone toward ownership, this model sees the sharemilker owning the herd and receiving 50% of the milk revenue. The sharemilker is responsible for more costs but has a clear pathway to building equity.
4. Equity Partnerships For those with some capital but not enough for full farm ownership, equity partnerships allow multiple parties to invest together. These partnerships can be structured flexibly, enabling progressive ownership over time.
5. Lease-to-Own & Syndicates Some farmers enter ownership through lease agreements or farming syndicates, where a group of investors collaborates to own and operate a farm. These models offer alternative ways to build ownership without requiring full capital upfront.
How Landify Supports Your Journey
At Landify, we understand that every farmer’s journey is unique. That’s why we provide a platform to connect farmers with farming partnership listings, investment opportunities, and ownership pathways. Whether you’re looking for an equity partnership, a lease arrangement, or a pathway into sharemilking, Landify helps turn aspirations into reality.
Ready to explore your next step? Visit Landify.co.nz to sign up for free and start your journey toward farm ownership today!
For more insights, check out DairyNZ’s Decision Tree for Career Progression to evaluate your best options based on equity, risk preference, and working style.
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