South West Waikato

Farming using the Halter technology has added a new interest and enjoyment to farming for the owners and the staff on this South West Waikato farm.

This technology fits well with the vision Pete Morgan and Ann Bouma have for a simple, efficient, profitable and environmentally sustainable system that will allow them to enjoy a quality lifestyle with family and friends.

Farm Facts

Business type: Owner-operator
Location: Pokuru, Waipa
Farm size: 230ha effective milking platform, no support block
Peak cows: 620 FJX (630 wintered)
PSC: 18/7/2021 MA cows (15/7/2021 Heifers)
Stocking rate: 2.70 cows/ha
Farm system: 2 (1-10% feed imported)
Production: 210,000kg MS/year budgeted,  913kg MS/ha 339kg MS/cow (206,000kg MS average for last 2 years)

The whole farm system is evidence-driven, so research science is behind all decisions and achieving a high standard of environmental outcomes is an important part of implementing the farm plan.

The 2021-22 budget includes $0.36 per kg MS for the Halter programme. The focus for the future is to achieve optimal utilisation of the programme to ensure a good return on money spent.

Scroll down to get into the latest budget!

Numbers at a glance

Financial KPI 2021-2022 budget

Physical KPI 2020-21

Net dairy cash income

$/kgMS

Total farm working expenses
$/kgMS
Total operating expenses
$/kgMS
Dairy operating profit
$/ha

Pasture and crop harvested
t DM/ha

Purchased N surplus
kg N/ha/yr *
Methane Emissions
t CO2 equiv/ha/yr *
Six week in-calf rate
%
$7.54 $4.35 $5.10 $2,273 12.4 -2

6.7

70

*Find out more about these KPI's and how to calculate them for your own farm here.

Management decisions

Season review

2021/22 Forecast Budget

Click here for PDF version

Income $TOTAL $/KgMS $/COW $/HA
Net Milk Sales

Milk price is based on 210000 kg MS @ $5.08 advance plus deferred payments on 215,228 kg MS @ $2.08 less the DairyNZ and bio-security levy of 0.06 c per kg MS on 210,000 kg MS. The budget includes a Fonterra Dividend of $0.05 on $96547 shares. *This milk income is the farmers best estimate of their likely net milk sales. It may or may not be out of date based on new information from Dairy Companies. It does not necessarily reflect DairyNZ's milk price forecast.

1,504,400 7.16 2,426 6,541
Net Dairy Livestock Sales

Stock sales are made up of 112 MA Cows /MT R 2 Heifers @ $550, 400 bobbies @ $35, and 40 bull calves @ 100.

79,600 0.38 128 346
Net Dairy Cash Income 1,584,000 7.54 2,555 6,887

Expenses $TOTAL $/KgMS $/COW $/HA
Wages

The farm has 2 sheds, so wages cover the cost of 2 full time farm managers, 2 FTE farm assistants and 0.7 FTE for 2 part time staff members, to cover relief milking and contract work. These employees are supported by 1.0 FTE of owner unpaid input. The owners are stepping back from hands on farm work this season so employee remuneration recognises the increase in experience and responsibility for the farm managers. One staff member is part of the farm apprenticeship programme so costs reflect the government subsidy for that scheme. Cows per FTE of 103 is well below average and is a deliberate decision to reduce the pressure on all staff and provide better work/life balance for all staff and the owners.

(incl. ACC)
236,000 1.12 381 1,026
Animal health

Focus is on prevention with minimal veterinary intervention required. Includes blood tests and copper supplementation. SCC is below 120,000. The policy is to teat seal the whole herd, and use a selective programme for dry cow therapy. High SCC cows get long acting antibiotic, mid-range SCC cows get short acting antibiotic and low SCC cows are just teat sealed.

50,000 0.24 81 217
Breeding and herd improvement

Includes anoestrus and synchonisation treatment for non-cycling cows and 3 weeks AB plus 2 days to cover returns from cows treated for anoestrus. The top 20% of the herd on genetic merit are mated with sexed semen, the lowest 20% are mated to AB Hereford semen and the rest of the herd is mated with premier sires. 12 bulls are leased to follow AB for 3 weeks. The last 2 weeks of mating is with AB using short gestation bull semen. Extra bulls are needed as during mating the 2 herds are split so 4 separate mobs are on the farm. Total mating length is 8-9 weeks. Aim is to be finished calving by September 20th. Herd test 4 times per year (drought permitting) with once a day testing. Cost also includes herd recording and identification, (including freeze branding of heifers coming into the herd). Includes the lease of 6 bulls for the heifers.

49,000 0.23 79 213
Farm dairy

Rubberware changed once a year, standard detergents used. Does cover the use of 2 sheds for the whole year. Twice a day milking till mid- December and then once a day for the rest of the season.

8,000 0.04 13 35
Electricity

Use hot water washes daily. Both sheds have a heat recovery unit fitted to chiller so hot water is cheaper. Whole herd is on once a day milking usually from mid-December.

(farm dairy, water supply)
32,000 0.15 52 139
Supplements made

This includes $30,000 to cover silage made on farm. Only genuine surpluses are made which can vary from 0 ha to 30-40 ha. If there is a surplus of pasture in summer this will be made as small bales of hay to use for calves and springers. All harvesting is done by external contractors. Supplements made costs also includes $20,000 for 8 ha maize silage grown on farm, (using strip tillage and direct drilling), this is made up of $6,000 for planting and $14,000 harvesting. Yields of 18 t DM/ha are expected.

(incl. Contractors)
50,000 0.24 81 217
Supplements purchased

15t DM hay purchased for $620 per t DM landed and 50 t DM early harvest maize silage for $350 per t DM delivered. 50 t of PKE has also been contracted at $375 per t landed.

46,000 0.22 74 200
Calf rearing

Plan to rear 120 heifer calf replacements and 8 beef calves. Costs include 8 t calf meal @ $1000 per t delivered plus $2,500 for bedding and equipment. Calves are reared on colostrum and wholemilk and leave the farm for grazing in early December.

10,500 0.05 17 46
Young and drystock grazing

120 R 1 heifers @ $9.00 for 20 weeks and 130 R 2 heifers @ $11.00 for 52 weeks plus freight of $6,500.

102,500 0.49 165 446
Fertiliser

Have done individual paddock testing in the past so have used this information to be more strategic with fertiliser applications. Includes $37,500 for maintenance fertiliser, (including spreading), and $12,000 for nitrogen fertiliser. DAP is used in the spring and urea the rest of the year. Usually apply about 30-40 units N per ha per year. Effluent is applied to 75 ha - this area gets less fertiliser. Crop fertiliser is included in fertiliser costs.

(incl. N)
53,300 0.25 86 232
Regrassing & cropping

The budget is for planting 20 ha of chicory and 10 ha of clean crop turnips, and regrassing of these areas in the autumn. Plus regrassing the 8 ha maize area and some allowance for patching and undersowing as needed.

17,500 0.08 28 76
Weed and pest

Californian thistles are still a problem in some paddocks. Treatment includes topping so that regrowth is all at the same flower bud stage before spraying with an appropriate weed spray. Other weeds that are an issue are white daisy and yellow bristle grass. Weed and Pest expenses are up on previous years as there is 2 km of river boundary to clear in readiness for riparian planting next autumn.

12,500 0.06 20 54
Vehicles & fuel

Includes $9,000 for fuel and $11,000 for tractors. Discounts through Farm Source have led to savings in fuel costs. Have very few vehicles - tend to use contractors for bigger jobs. Two electric motorbikes will be in use for 2021-22 so this should reduce costs further.

30,000 0.14 48 130
R&M

Have a policy of doing big maintenance jobs in good payout years so here is no major R & M planned for this year. Includes $8,000 for dwelling and other buildings, $3,000 for fencing, $3,000 for water supply, $22,000 plant & machinery, $9,000 for tracks and yards and $10,000 for riparian planting and shelter trees. The forecast is for another good payout year so have $15,000 in the budget to allow for for more discretionary R & M.

(land, buildings, plant, machinery)
70,000 0.33 113 304
Freight and general farm expenses

Includes $1,500 protective clothing and $1,500 dog expenses, and $1,000 for general stock cartage.

4,000 0.02 6 17
Administration

Do own budgets, GST and PAYE. Includes $14,200 for accountancy, communication, computer, subscriptions and mail and $450 for health and safety.

17,000 0.08 27 74
Insurance

Reviewed every couple of years to ensure it is still relevant. Has increased slightly as have more vehicles and machinery with the change in business structure.

17,000 0.08 27 74
ACC

Covers ACC for staff and owners.

10,000 0.05 16 43
Rates

Includes Council rates and regional environmental rates. Farm has multiple titles so rates are a bit higher.

24,000 0.11 39 104
Other expenses

The farm has been part of the Halter programme since November 2020. This cost covers the 12 month lease for the hardware, (neck halters), infrastructure, (relay towers), and software support for the Halter programme. This will be the first full year that this is being used.

75,000 0.36 121 326
Total Farm Working Expenses 914,300 4.35 1,475 3,975
Cash Operating Surplus 669,700 3.19 1,080 2,912

Non-cash adjustments have been included below the cash analysis to enable fairer comparisons to be made between farms. These adjustments are not part of a cash budget but are important to fully understand the efficiency of the farm business.

$TOTAL $/KgMS $/COW $/HA
Value of change in Dairy livestock

Plan to rear 10 fewer replacement this year. Expect to have 8 more R 2 heifers and 9 more mixed age cows. These are valued using the IRD 2021 NAMV.

10,555 0.05 17 46
Labour adjustment

This covers 1 FTE of unpaid management inut from the owners. This season the owners will stepping back from hands on farming and spending more time in a management role. This will allow more focus on learning about, and, integrating the use of Halter into the farm business so maximum benefit can be gained from this.

85,000 0.40 137 370
Feed inventory adjustment

Had 50.6 t DM of extra silage on hand at the start of the season which is not expected to be replaced.

-12,540 -0.06 -20 -55
Depreciation

Depreciation is based on the 2019-20 actual values plus allowance 2 further years depreciation and for asset purchases and sales for 2020-21 and 2021-22.

60,000 0.29 97 261
Dairy Gross Farm Revenue 1,594,555 7.59 2,572 6,933
Dairy Operating Expenses 1,071,840 5.10 1,729 4,660
Dairy Operating Profit 522,715 2.49 843 2,273

More information

Click the link below to view this farm's figures from previous seasons:

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