Yannathan focus farm is open for business

There was a big turn-out to the first Yannathan Focus Farm open day last week with 66 farmers and service providers gaining an insight into an unusual business model for the dairy industry.

The Yannathan Focus Farm is a 185 hectare lease property, operated under a three-way partnership between Evan Campbell, Noel and Anne Campbell and Dean and Bek Turner.

Redan Partners (an acronym based on the first names of those involved) is seen as a means to build equity as well as provide opportunities for personal and business growth for those involved.

Focus FarmfFacilitator Matt Harms said the large turn-out to Thursday’s open day reflected the importance of developing creative methods that allow people to grow their dairy careers and equity while others can transition out of day-to-day farm management.

“This model sparks a bit of interest,” he said.

“It’s complex, but it’s certainly got a lot of merit considering what each equity partner has brought to the table.”

“This Focus Farm is about wealth creation, models for equity partnerships and what may or may not be a good way to set up such structures to allow people within the industry to grow.”

While the equity partnership is of interest to many in the dairy industry, the management of the on-farm operation, where 390 small-tomedium crossbreds are milked, is also a major attraction of this Focus farm.

Redan Partners has set the following goals to be achieved over the two years as a Focus Farm:

Production: lifting production profitably, to 1kg milk solids per kg liveweight.

Pasture: minimising imported feed and lifting pasture consumed from 7tDM/ha in 17/18 to 8tDM/ha in 18/19 and 9tDM/ha in 19/20.

Calving: stay as a single seasonal calving herd with no induction.

Equity: grow the equity in the business for the partners involved and ensure Redan is a financially stand-alone entity.

Capital: to investigate and assess capital investment options on their merits and make informed decisions for the business going forward.

The seasonal fortunes of the farm business have turned around in recent weeks, with a Melbourne Cup day deluge and more recent heavy falls turning a dicey situation into a spring that looks better by the day.

“There was doom and gloom in September and early October, but given the relative stability in the weather since then and some good falls of rain during that time, it’s put things in the position that it’s in now where it’s probably quite normal for the middle of November,” Matt said.

It’s a situation that has been reflected across many farms in Gippsland, although some pockets have not fared so well with spring rainfall

“You would say southern Gippsland, with the exception of the south-east is looking very normal with a good spring,” Matt said.

The Focus Farm project, which is supported by GippsDairy and Dairy Australia, works on improving farm businesses while integrating farm family needs. The project aims to improve profitability through strengthened understanding of operational costs, maximising home grown feed and managing risks to the business.

This is achieved by close monitoring of farm activities and expenditure, with input from experienced farm facilitators and a support group made up of farmers and local service providers.

GippsDairy regional manager Allan Cameron said the open day showed how the Focus Farm project helped spread knowledge through the Gippsland dairy industry.

“From the discussions about how the equity partnership worked to the finer points of Dean’s turnip crops, this was a day that offered a wealth of information to anyone willing to listen and learn,” he said.

“There was plenty of food for thought on long term business structures, but also how to approach the next few months in what could be a tight season for many farmers.”