1.0 INTRODUCTION
Due to rapid escalation in land prices over the past three to four years, farm owners with sharemilkers on their properties are seeing their return on capital dwindle compared to their sharemilkers. This has prompted some debate over the adequacy of the 50/50 agreement.
It has also created a number of issues for sharemilkers, such as their ability to find larger jobs and accumulate capital, the amount of time which it now takes to reach farm ownership and the general level of risk in sharemilking.
This is likely to have an impact on the number of positions available, the type of people who fill them and their goals and aspirations.
Specifically this project will look at the following points:
- The returns owners are getting from the 50/50 agreement and how this influences trends toward other types of arrangements.
- The ability of sharemilkers to purchase farms with consideration of the recent increase in land prices relative to payout and stock values.
- The range of unorthodox agreements and how these affect returns to owners and sharemilkers.
- How unorthodox arrangements and increases in land values will affect:
sharemilkers ability to purchase a farm;
the ability of the dairy industry to attract new entrants; and
the motivation of those in sharemilking and those entering the industry.
These issues will be looked at in two different geographical areas, the central Waikato region which is a well established dairying area, and the Canterbury region which has a comparatively young dairy industry.
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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