How it works
In simple terms, the 50/50 sharemilking agreement works like this:
The sharemilker owns the cows and replacement stock, mobile machinery and employs the on-farm staff. The sharemilker has responsibility for the day to day management of the farm. For this they receive 50% of the milk income and share in the farm running costs.
Benefits include
- Attracts the best farmers to the model.
- Sharing the risk and costs for their mutual benefit.
- Frees up the daily tie to operating the dairy farm.
- Suits absentee owners, investors, estates, trusts, corporates etc, with reduced variable costs.
- Encourages innovative and enthusiastic sharemilker partners to drive higher returns.
- Provides stability and security as sharemilking contracts are usually for three seasons.
