DairySA, Dairy Innovation Day · DairySA, Dairy Innovation Day ... reduce the current acid leaching problem and reduce the ... aspects of the farm system that are exceptionally good

A de

cade of innovation

“People Power—the strength behind your dairy”

Proceedings Booklet

DairySA, Dairy Innovation DayWednesday 27th June 2012

2 DairySA, Dairy Innovation Day 2012

DairySA would sincerely like to thank our sponsors

Contents

Program ...........................................................................................................................................................................3

DairySA, Dairy Innovation Day ..................................................................................................................................7

Dairy SA projects 2012 ...............................................................................................................................................8

Keynote speakers ........................................................................................................................................................10

Trade display map ......................................................................................................................................................11

Concurrent sessions ..................................................................................................................................................12

Proceeding papers .....................................................................................................................................................13High performing teams for dairy farms — what you can do to get the most out of your existing team 13Motivation or Moaning—What do you inspire in others? 14Session A: How to solve tricky people problems 15Session B: FIRE them up! Engaging your team fully 16Session C: Retention of employees on dairy farms —what works and why 17Session D: Succeeding with Succession 18“Dairy is my future” 19

Your levy is an investment in… The Next Generation ........................................................................................22

The People in Dairy Online Resources ..................................................................................................................24

Platinum Dairy Australia

Diamond Heritage Seeds

Gold Biosys Agribusiness Laucke Mills Regional Development Australia SE NRM Board Sinclair Wilson

The Top Paddock Riverland Oilseeds

Satchel Total Result Ag Consulting

Lunch Landmark Mt Gambier

Media Sponsor The Australian Dairy Farmer

Product Sponsor Lion Warrnambool Cheese & Butter

Silver Alta Genetics Australia Daviesway Dairy Equipment Elders Rural Services Grant District Council Mount Gambier City Council Philmac Pioneer Rabobank TAFE SA Water Dynamics

Bronze Meningie Fodder Mt Gambier Rural Supplies Murray Goulburn Seed Distributors Vickery Bros

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ProgramMorning session

9:30 am Registration, morning tea and trade displays

10:00 am Welcome by MC Mr Ken Solly, Solly Business Services Pty Ltd

10:05 am DairySA update by James Mann, Chairman, DairySA

Platinum sponsor Dairy Australia

10:10am » Dairy Australia update Ian Halliday, Managing Director, Dairy Australia Chris Murphy, Productivity & Delivery

10:30 am » High performing teams for dairy farms—what you can do to get the most out of your existing team?Kathryn McEwen, Organisational Psychologist, Dakin McEwen and CoachPartners

11:10 am » Motivation or Moaning—What do you inspire in others? Kathy McKenzie, Director, FIRE UP Coaching

11:50 am TafeSA / NCDEA Graduate presentation

12:00 pm LunchSponsored by Landmark

Concurrent sessionsThere is a choice of attending up to three sessions of the four available. Most sessions run for 35 minutes and is repeated twice throughout the day, session D runs as a longer 1.15 hr session or a shorter 35 minute session.

Session A1:00 –1:35pm

» How to solve tricky people problemsKathryn McEwen

Sponsored by Biosys Agribusiness

Session B1:00 –1:35pm

» FIRE them up! Engaging your team fully Kathy McKenzie

Sponsored by Lauke Mills

Session C1:00 –1:35pm

» Retention of employees on dairy farms—what works and why Mark Thompson, Lecturer, TafeSA Regional

Sponsored by Regional Development Australia

Session D1:00 pm until

2:15 pm

» Succeeding with SuccessionKen Solly, Agribusiness consultant, Solly Business Services Pty Ltd

This session is available twice: Longer in-depth session from 1:00 – 2:15 pm a shorter snapshot from 2:20 – 2:55 pm

Sponsored by South East Natural Resource Management Board

1:40 pm – 2:15 pm Concurrent sessions A, B, C (repeated)

2:20 pm – 2:55 pm Concurrent sessions A, B, C, D (repeated)

OR attend Dairy is my future1:00 pm until

2:55 pm » Tips, resources and ideas for newer industry entrants, employees or young farmers

John Mulvany, ONFARM Consulting

Sponsored by Sinclair Wilson

Closing session3:00 pm » Dairy farming and work/life balance—how to make it all work

Featuring John Mulvany and dairy farmers, Warren & Kerrie Redmond from Inverlock, South Gippsland and Bruce & Andrea Vallance, Nullawarre, Western Victoria.

3:45 pm » Summary and close Ken Solly

Sponsored by Heritage Seeds

Head to “The Top Paddock” to discuss the day’s events with refreshments sponsors Riverland Oilseeds, members of the organising committee, the Dairy Australia Board and DairySA Board to discuss the day’s events with a light graze and drinks until 5:30 pm.

All dayThe Dairy Australia People in Dairy team will be available throughout the day with their interactive website, to help you find and use information in working with and/or managing people on your dairy farm.


THE ULTIMATEPOWER TO PRODUCE

www.heritageseeds.com.au

At Heritage Seeds we understand that improved pastures means better nutrition resulting in increased productivity. That’s why we spend many years and millions of dollars across multiple locations developing the very best pasture varieties to really power your productivity. To learn more visit our website or call 1800 007 333

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5


AN INDEPENDENT BUSINESS SERVICES FIRM PROVIDING RURAL SOLUTIONS SINCE 1950.

SOME ADVANTAGES IN EMPLOYING THE SERVICES OF SINCLAIR WILSON: We are a regional firm with specialist departments for Taxation, Business Advice,

Financial Planning and Superannuation. We prepare detailed finance projections, submissions and recommendations. We are located close to you in Mount Gambier. We live in, and understand our market place.

www.sinclairwilson.com.au

3 Penola Road, Mount Gambier. Tel 08 8724 0399257 Timor Street, Warrnambool. Tel 03 5564 0555

Regional Development Australia Boards play a pivotal role in ensuring the long term sustainability of Australia’s regions and are based on building partnerships between governments, regional development organisations, the private sector and other key regional stakeholders to provide a strategic and targeted response to issues in each region and to facilitate community leadership and resilience.

RDA Limestone Coast also provides a host of advisory and assistance programs to business, industry and the wider community including the:

• Small Business Advisory Service

• South Australia Works—Working Regions program

• Career Development Centre.

Representatives will be available throughout the course of the Dairy Innovation Day to provide information on a variety of Government programs, including the Australian Government’s Austrade program “TradeStart” and the suite of AusIndustry innovation and research and development initiatives.

Call into our trade display and chat with Business Development Manager Mike Ryan and Export Advisor Bruce Rodda.

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BackgroundThe DairySA Innovation Day 2012 is held in the South East of South Australia. This day is supported by DairySA a non-profit Regional Development Program of Dairy Australia and a local committee. The committee is made up of dairy farmers and industry representatives who organise and coordinate the Dairy Innovation Day.

The DairySA Innovation Days have been held annually for the past ten years and have proven to be very successful, attracting in excess of 150 people making them an integral part of the dairy industry calendar in South Australia.

The DairySA Innovation Day is designed to showcase and present the latest best practice on farm research and innovation to the dairy industry.

CommitteeJames Mann Dairy Farmer, Donovan’s

Kylie Boston Coordinator

Lyndon Clegget Dairy Farmer, Glencoe

Sean Durcan Dairy Farmer, Mt Schank

John Hunt Dairy Farmer, Kongorong

Rebecca Hehir Elders

Rob Palamountain SE Natural Resources Management Board

Travis Telford Dairy Farmer, Mount Schank

Mark Thompson TAFE SA

DairySA, Dairy Innovation Day

City of Mount GambierOffice of the Mayor

DairySA Innovation Day 2012

It is my honour and privilege to extend the warmest welcome to all delegates and partners who attend the 2012 DairySA, Innovation Day.

Mount Gambier is proud to host this event for an industry that makes a significant contribution to our local economy. The South East produces over 50% of South Australia’s milk and is well regarded as a fundamental part of the future development of the “South-West” milk field due to our reliable climate and the availability of water both through our underground aquifer system and consistent rainfall.

We are privileged to live in a region that is abundant with natural resources and as custodians of our region we take responsibility for the sustainability of our natural assets and continually strive to support innovative, industry initiatives that protect and preserve our natural environment.

We look forward to welcoming you to the City of Mount Gambier and encourage you to take time during your stay to see and enjoy the many unique attractions and visitor facilities that make Mount Gambier so special.

Again, welcome to Mount Gambier.

Steve Perryman, Mayor CITY OF MOUNT GAMBIER


GPS COWSGPS Cows is an innovative project for DairySA, which will apply precision technologies to describe large herd behaviours. This information collected will be used to aid the nutritional management and rumen health of the cow. The project will include documenting the distances travelled, and nature of travel (when, where, how fast) in large scale, grazing herds utilising complex feeding systems; identifing behaviours of the leader and follower groups within the herd and correlate these to their various activities (walking, feeding, rumination, resting, health, oestrus); describing the various activities of the two selected groups of cows in terms of time and distance spent walking and grazing, the amount of time spent ruminating (including rumination frequency), the time spent resting, and the number and duration of feeding and drinking events; correlating behaviours and/or events, including herd health, to changes in rumen pH; and if possible, describing hoof health and establish relationships with behaviours and/or activity. The project is funded by DairySA and Dairy Australia. Contact Verity Ingham 08 8766 0127

FLEURIEU FORAGE INNOVATIONThe Fleurieu Forage Innovation (FFI) project is designed to address current limitations to dryland pastures for Hills and Fleurieu dairy farmers. Being delivered by FP-AG, the project has been developed with intensive local dairy farmer input so that the aims and potential outcomes of the project remain relevant, timely and farmer-driven. The project will evaluate and demonstrate spring sowing as a reliable and cost-effective method to reseed pastures, and improve the seasonality of forage production on Hills and Fleurieu dairy farms; demonstrate and quantify the seasonal herbage production of a range of alternative pasture and forage crop options on Hills and Fleurieu dairy farms and network and directly engage with Hills and Fleurieu dairy farmers to achieve on-farm practice change for improved seasonality or productivity of home-grown forages. The project is funded by DairySA. Contact Greg Mitchell 0417 814 037

LOWER MURRAY SUSTAINABLE SOILSThe Lower Murray Reclaimed Irrigation Areas (LMRIA) Sustainable Soils project is investigating management practices to reduce subsoil acidity in the region. Drought and low river levels have exposed widespread areas of soils identified by CSIRO as acid sulphate soils. Drainage from some areas is currently acidic and the problem is increasing. New management practices are required to reduce the current acid leaching problem and reduce the risk of future events. Farmers will trial options, review cost effectiveness and share the results with others in the region in an integrated program. The project is funded by the Department of Agriculture Fisheries and Forestry. Contact Monique White 0400 972 206

Dairy SA projects 2012

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ALSO: THIS IS THE MONO SECTION, BY THE WAY. IS THAT OK?

FUTURE READY DAIRY SYSTEMSFRDS is a national Dairy Australia project that includes working with farmers to identify and demonstrate viable, practical and profitable options to mitigate and adapt to climate change. The FRDS project in SA is examining existing farm systems on the Murray and EMLR/Barossa – Mid North to compare and contrast grass-based, PMR and TMR dairy production systems. The project will consider the differing ratios of grass : supplementary feeding being undertaken and the relative benefits of each farms’ system. Farm field days will focus on the aspects of the farm system that are exceptionally good in each case, and provide presentations on areas of interest where future changes might be made. Workshops are also included with topics such as soil biology and alterative energy in the dairy. The project is funded by the Department of Agriculture Fisheries and Forestry. Contact Monique White 0400 972 206

DairySA BUSINESS SUPPORT AND ADVICEDairySA provides funding for dairy farm businesses to access advice from business and financial planning consultants. Support is available to assist with development and/or review of business plans, farm budgets, cash flows or advice of a similar nature. Contact Verity Ingham 08 8766 0127

DAIRY DISCUSSION GROUPSDairySA provides matching funding for Dairy Discussion Groups in SA. Groups can undertake any activities that develop the skills and knowledge of those people working in SA on farm dairy businesses. This may be in the area of dairy farm production, human resource management, business management or natural resources. Activities must be undertaken as a group and must operate over twelve-month period. Currently there are nine (9) discussion groups in SA funded through this program. The groups are co-funded by DairySA and participants. Contact Verity Ingham 08 8766 0127

YOUNG PEOPLE IN DAIRYDairySA is supporting programs that develop skills and knowledge of young people in dairy farming to increase participant and engagement in the industry. Programs supported include Making Milk Solid Business, Moovers and Shakers, Don Campbell Tour Memorial Tour, Cows Create Careers and Dairy Careers. Recently the iDairy overseas study tour and documentary development was delivered through DairySA. Contact Verity Ingham 08 8766 0127

For more DairySA projects visit www.dairysa.com.au or contact DairySA on (08) 8766 0127.


Kathryn McEwen, Organisational Psychologist, Dakin McEwen and CoachPartnersKathryn is an organisational psychologist, published author, speaker and executive coach. She is a consulting organisational psychologist across all industry sectors. Kathryn is a partner of the coaching consortium CoachPartners and of Dakin McEwen—an organisational psychology practice. In 2011 she established a consortium of professionals interested in advancing understanding in the area of workplace resilience.

Kathy McKenzie, Director, FIRE UP CoachingKathy is a specialist Communications Trainer, Business Consultant and Executive Coach with extensive national and international experience. She founded FIRE UP Coaching in 1998 and been working with a multitude of companies to achieve organisational change. Kathy has a strong family farming background and a depth of understanding of the challenges and opportunities facing the agricultural sector.

Ian Halliday, Managing Director, Dairy AustraliaIan was appointed Managing Director of Dairy Australia in December 2009, bringing the experience of a career which has spanned across the supply chain. His experience is made up of an extensive range of management roles, most recently as the Chief Executive Officer of Vesco Foods, and previously with SPC, White Wings, Kraft Foods and KR Castlemaine.

John Mulvany, ONFARM ConsultingJohn has been involved in the Victorian Dairy Industry for over 25 years. In 1996 formed his own company, ONFARM Consulting. John’s strength lies in his exposure to such a broad clientele. Almost daily he is exposed to an extensive range of dairy production systems that are expected to cope with ever changing environmental and economic conditions. This gives him the ability to observe and analyse both the “big picture” issues as well as those relating to “on farm” decision making.

Ken Solly, Agribusiness Consultant, Solly Business Services Pty LtdKen is the Managing Director of Solly Business Services, a specialist Agribusiness company focusing on farm consulting, training and education, coaching and mentoring and agritourism. His main work involves consulting with farmers - reviewing and analysing their businesses and creating new business options. Ken is recognised across Australia as a leading educator of farmers particularly in the fields of cost of production, business planning, business analysis and benchmarking. Ken has a down to earth approach to consulting, placing great emphasis on empowering his clients to improve their businesses and their lifestyle

Mark Thompson, Lecturer, TafeSA RegionalMark is an Agriculture Lecturer at TAFESA in Mt. Gambier. He has a B.Com (Agriculture) from Lincoln University NZ, specialising in both Dairying and International Trade. Mark dairy-farmed in NZ progressing through the traditional share farming route to purchase a dairy farm. With his wife and four children he then migrated to Australia to farm near Mount Gambier. He has since sold the farm and changed his career direction to lecturing, passing on his knowledge and experience to a new generation of dairy farmers.

Keynote speakers

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1. Dairy Australia

2. Heritage Seeds

3. Regional Development Aust

4. SENRMB

5. Lauke Mills

6. Sinclair Wilson

7. Biosys Agribusiness

8. Aust Dairy Farmer

9. TRAC

10. Rabobank

11. Water Dynamics

12. Philmac

13. Elders

14. Landmark

15. Daviesway

16. Pioneer

17. Alto Genetics

18. TafeSA

Trade display map

Trade stands


Concurrent sessions

There is a choice of attending up to three sessions of the four available. Most sessions run for 35 minutes and is repeated twice throughout the day. Session D runs as a longer 1.15 hour session OR a shorter 35 minute session.

1:00 pm –1:35pm Concurrent sessions

1:40 pm – 2:15 pm Concurrent sessions A, B, C

2:20 pm – 2:55 pm Concurrent sessions A, B, C, D

A How to solve tricky people problems Kathryn McEwen, Organisational Psychologist, Dakin McEwen and CoachPartners Sponsored by Biosys Agribusiness

B FIRE them up! Engaging your team fully Kathy McKenzie, Director, FIRE UP Coaching Sponsored by Lauke Mills

C Retention of employees on dairy farms — what works and why Mark Thompson, Lecturer, TafeSA Regional Sponsored by Regional Development Australia

D Succession plans that work Ken Solly, Solly Business Services Sponsored by South East Natural Resource Management Board

This session is available twice: a long in-depth session from 1:00–2:15 pm or a snapshot from 2:20–2:55 pm

OR attend ‘Dairy is my future’ (1:00 pm until 2:55 pm) Tips, resources and ideas for newer industry entrants, employees or young farmers John Mulvany, ONFARM Consulting Sponsored by Sinclair Wilson

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Proceeding papers

High performing teams for dairy farms — what you can do to get the most out of your existing teamKathryn McEwen Organisational Psychologist, Dakin McEwen and CoachPartners P: 08 8342 1797 E: [email protected]

In any business, family or working environment effectiveness is dependent largely on teamwork. As in any sports team a group of talented individuals does not produce a strong team and people with strong relationships do not necessarily get the results you want or need. Research into high performing teams has found seven components that underlie teamwork including:

» A shared purpose and direction

» The right skill mix and use of talent

» Clear roles and responsibilities

» Efficient and effective team processes

» Constructive interpersonal relationships and communication

» Useful feedback and ways of ensuring efforts are rewarded

» Good relationships outside of the team with customers, suppliers and other key people.

We know that regular investment into each of these areas pays strong dividends in team cohesiveness and output.

In this session organisational psychologist Kathryn McEwen will enable you to check out your team’s effectiveness through exploring each of these components. She will also offer tips on how to coach your team towards improved performance and business profitability.

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Motivation or Moaning—What do you inspire in others?Kathy McKenzie Director, FIRE UP Coaching P: 03 9077 8472 E: [email protected]

Most people don’t give enough thought to the power of words to create our world. Positive powerful language is the key to motivating others. Negative, pessimistic language is guaranteed to have people wanting to escape from your presence ASAP!

This session will introduce or reinforce the power of language to influence the kind of atmosphere we have in our workplace. Much research has been done by the Gallup Organisation to demonstrate that focusing on our strengths and the strengths of our team is the best way to improve performance and engagement.

Many people are totally unaware how their language impacts on those around them. In this session we will relate the latest research on positive psychology to the dairy environment. Participants will leave understanding what an active constructive conversation is and how to engage with others in a way that creates connection and rapport.

Breaking old patterns of language and thinking is not an easy process however we will share resources and insights on how to begin linking to your full potential and bringing out the best in others.

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Session A: How to solve tricky people problemsKathryn McEwen Organisational Psychologist, Dakin McEwen and CoachPartners

One of the most common challenges in business is dealing with staffing problems. In small teams, in particular, issues with just one of your team members can have a major impact on both other staff and work outputs.

There is no quick fix or answer to staff problems and it is important to ensure you properly ‘diagnose’ what is happening before taking action. In this session organisational psychologist Kathryn McEwen will provide an overview of:

» The ’can do’ and ‘will do’ elements of worker performance and how to identify them

» Common employee problems that can occur and how to deal with them

» What do to when the whole team is in trouble.

This session will build on Kathryn’s morning session on high performing teams.

Session B: FIRE them up! Engaging your team fully.


Session B: FIRE them up! Engaging your team fullyKathy McKenzie Director, FIRE UP Coaching

People want to be motivated and engaged at work but sadly many workplaces don’t know how to create positive workplace cultures that inspire people to be there best and be enthusiastic about being there.

This session will provide participants with a framework for having collaborative conversations verses the traditional dairy leadership approach which is more directive and instructive. Whilst this has its place as leaders you need to have the flexibility to adapt to different situations. This simple framework will build awareness on how to have more engaging, connected conversations.

Motivating and engaging others requires conscious thought about how you will engage. In this session we introduce the REACH model which is a coaching conversation framework that was originally developed for Queensland Health by FIREUP Coaching, but has proven to be a fantastic tool in any environment.

Participants will leave with a REACH pocket prompter which we will give instructions on how to use in the session and that then give a tangible take away to engage in new behaviours.

Reach outlineRapportRapport building—begin by paying attention to all the verbal and non-verbal aspects of building rapport:

» Match tone, pitch, speed, volume

» Pace and lead language patterns

» Use backtracking and softeners to delve into what the session outcome will be

» Match and mirror body language and gestures appropriately

In the establishment of rapport get clear on the outcome for the session

Set a clear contract (Session Topic/Focus)

» What do you want to accomplish in this 30 (45, 60) minutes?

» Question to establish what will be of most value in the time you have?

ExploreThe quality of the questions will determine the quality of the answers you receive. There are many ways to delve deeper into a team members issues. The key is for the questions to be solution focused and outcome oriented.Outcome oriented questions are ones such as:

» What do you want? » How will you get it? » What would need to be different to get what you want? » How will you know if you’ve got it? What will a clear

outcome look like? (or could be feel like or what would you be saying when you achieved the outcome?)

» Just suppose you committed fully to getting the outcome, what would you have to do first?

ActionCoaching conversations are intended to direct a client/team member to effective action. A client/team member will walk away from an effective coaching conversation clear on what the action steps they need to take are and they will be stated as SSMART Goals: » Stated in positive language—what you want not what

you don’t want » Specific—is easily understood and is so specific it only

has one interpretation » Measurable—has a concrete measure that is tangible » Achievable—within the clients control to achieve » Realistic—is ecological (Fits with client values and

is balanced) » Time dated—a date is set to achieve or review the

action or outcomeClarifyWhenever we work with clients/team members it is essential to clarify the value in achieving the outcome. A client will need to be questioned around the importance of achieving the goal.Questions of clarification may include: » What is really important for you about achieving this

goal / outcome? » What is the value in achieving this? » What will happen if you don’t achieve this? » How will your life be different having achieved?

HonourAn active constructive conversation should always leave someone feeling validated and supported. We emphasise finding a way to ensure you finish a conversation in some way honouring the other person. Validate them in a way that is authentic and ensures they leave the session feeling good about who they are. » What was the value of this session for you?

» What are your wins from this session?

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Session C: Retention of employees on dairy farms —what works and whyMark Thompson Lecturer, TafeSA Regional

This session will explore the importance of retention of people working on dairy farms, including how this impacts individual farm business and the dairy industry as a whole. This will be presented in three main segments:

» A dairy business point of view

» The employee’s perspective, and

» The dairy industry as a whole.

I believe this trend of increasing farm and herd size will continue into the future. The average “Dairy Farm Model” as we know it will change from several owner/managers to fewer businesses of a larger nature, employing a range of employee’s that will require specialist skills. As a result of this larger herd size model, farms will require a more sophisticated human resource approach that will recognise the financial cost of having poor retention in the work place. This is reflected in the following statistics:

» 46% of the current milk supply comes from 15% of businesses [Dairy Australia 2011]

» 59% of people working on Dairy Farms are Owners-Managers (which 46% are over 50 years old) [Source: ABS Census 2006]

Retention is a rather complex beast and good employee retention is often a result of sound human resource processes coupled with a vision that is shared by all in the workplace. Retention reflects the essential “Health” of the farm business.

From an employees’ perspective, statistics will draw your attention to the single fact that employers still need to do better:

» 34% of the workforce currently employed on individual dairy farms had joined in the last 12 months

» Of that 34%, 14% were new entrants and 20% were existing dairy workers relocating to another farm [Dairy Situation and Outlook Survey, 2010–2011, Dairy Australia]

This is a considerable cost to the industry and reflects that we are not a preferred Industry for employment, at present. Employees expect better and this continues to challenge an industry that remains open for business 110 hours a week. In my presentation I will use case studies to discuss what dairy employee’s value in their place of employment.

Lastly I will discuss the big picture “Work Force Development”. This will deal with creating a regional plan (accepting that all regions are different). Strategies will include schools, attracting job seekers, identifying stakeholders, providing support to families re-locating to your region, researching the demographics of your region that will build the right case to present to the right people.

The need for industry employers to recognise they are training people for the Industry as a whole and that this is an investment for the future. Lastly employers’ need to:

» Invest in the right training for themselves and all the other people in their business,

» Continue to demand quality

» Communicate their need, which challenges our training organisations.

30.8%27.6% 26.4%

13.2%

1.6% 0.4%

6.8%

16.6%

30.5%32.0%

8.5%5.6%

0%

5%

10%

15%

20%

25%

30%

35%

< 0.5 million 0.5 -1 million 1-2 million 2-5 million 5-10 million > 10 million

Litres produced annually% herds % supply


Session D: Succeeding with SuccessionKen Solly Agribusiness consultant, Solly Business Services Pty Ltd

Transitioning the ownership and management of a business can be a most divisive issue and can quite often result in irreparable breakdown in family relationships. This need not be the case if some fundamentals are followed and the process is commenced at an early stage.

When contemplating succession the oldest generation usually has control of the assets and a strong involvement in the way in which the farm is run. On reaching fifty years of age all farmers should have three very important plans in place, they being, retirement, succession and estate plans. Each one of these plans affects the other. The retirement plan is the starting point because as the oldest generation you do not want to give away the goose that lays the golden egg to early because if circumstances change then you may not have the time left to generate the capital to support you in retirement. It is recommended that developing a retirement plan at least ten years before you think you will retire with the assistance of a financial planner is a good idea. If you wish to hand on the farm assets to the next generation then it is ideal to have financial independence as well so you don’t have to go back begging or become a drain on farm resources. Developing off farm assets assists this and it can also make it easier when distributing assets to non-farming children. Once you have your retirement plan sorted then that is one big issue resolved and should make the decisions behind succession a little easier. If you start early enough on the retirement plan and realise that the succession plan you have in mind is not workable then you have years up your sleeve to develops the wealth and make the plan a reality.

Underpinning a good succession plan is the need for a growing and profitable business, without this the size of the cake may not be big enough to distribute fairly and leave a viable operation in one or all cases. Most parents like to be as fair as they can when it comes to distributing their assets but being equal is quite often not being fair. The farming children have worked for many years taking base wages on which to live and they have not been paid in full for both their time and intellectual input over many which have resulted in the growth of the business.

In the development of a succession plan it is ever so important to engage the services of an experienced business facilitator who understands the important issues that are to be considered in the process, particularly dealing with human emotions. Engaging a facilitator

usually ensures that family relationships are maintained and that no one dominates or tries to bully others in the process. Whilst the children do have some right in most cases it is still Mum and Dad’s wishes that must be respected. A good starting point is to have each member of the family identify their own goals, needs and concerns as it relates to succession. The facilitator then has an awareness of where each person is coming from and can start to develop options for the family to consider prior to the first family meeting. Mum and Dad need to have all this information as well so they can accommodate the varying wishes.

The first meeting is usually one of three. The initial meeting allows each party to outline their goals, needs and concerns so everybody is aware of the scope of matters to be considered. It can also be valuable to have your accountant and or solicitor present to throw light on the legal or tax implications of the key ideas. Because they know your business well and have worked on these issues with other families they have a lot to offer. The first meeting should not be about making absolute decisions but gaining areas of agreement and all members can go away to come up with possible options for the areas yet too resolved.

Meeting for the second time may result in resolution of all outstanding issues negating the need for a third meeting. In all situations it is about having the ability to get in the other person’s shoes or in most cases many others shoes. By doing this it gives you the greatest chance of others doing likewise. By caring about other family members issues you can all but expect them to care about yours. You still need an open mind, a flexible approach and a need to compromise. Most importantly make sure Mum and Dad take what they deserve because as children you have many more years to make up the difference, and remember greed usually comes back to bite you in a big way.

Once both the retirement and succession plans are sorted the estate plan becomes relatively easy, most of the decisions have already been made. Wills that are enacted when you are alive are usually best but not always possible. Appointing executors of your will and powers of attorney must be well thought out decisions also.

Investing solidly in professional support even if it cost many thousands of dollars is a good investment. It will be much cheaper than having the matter contested in the courts and relationships being destroyed.

19

“Dairy is my future”Tips, resources and ideas for newer industry entrants, employees or young farmers

John Mulvany ONFARM Consulting

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Kylie

Move this page and the next to the the last 2 pages.


Your levy is an investment in… The Next Generation

Mount Compass dairy farmers, Warren and Jane Jacobs, are part of the growing number of producers who believe the future of the Australian dairy industry lies in developing the skills and knowledge of the next generation.

Without dairy farmer levies, much needed educational programs, providing young people with opportunities to enhance skills and develop careers within the industry, would not be possible.

Warren Jacobs says he and his wife recognise the importance of on-going professional development for their work team, their business and the future of the industry as a whole.

Employing three people on their 400-cow dairy farm, including fulltime dairy manager Ty Maidment, the Jacobs encourage their staff to participate in DairySA and Dairy Australia levy-funded programs — like 3030 Fleurieu Partner Farm, Young Dairy Farmer Network and the Nutrient Mapping Project, whenever possible.

“These programs are a good way for Ty to interact with other like-minded people and build-up contacts. And one of the real benefits is that it keeps him up-to-date, motivated and engaged in the industry,” Warren says.

“Through the Young Dairy Farmer Network, Ty gets to do this without me looking over his shoulder or influencing his opinions. It’s great these young guys can do this together.”

Owners Warren and Jane Jacobs

Location Fleurieu Peninsula Region Mount Compass, South Australia

Time in the business

20 years

Property and feed system

20 cow swing-over herringbone dairy

Forage-based

154 hectare effective milking area

55 hectare irrigation (start-up and finishing irrigation)

Sta! 2 full time 1 part time Feed and forage consultant

Farmer profile

^��The levy pays for itself through animal health and welfare and market information._

23

Warren says sending his staffers to workshops and forums throughout the year saves the business time and money, as they end up adopting more efficient business practices.

“It’s particularly good for me, because it means I don’t have to teach Ty everything. He can get it from other sources to back-up what we do here at home, or he brings home new information we can discuss and implement.

“We have a meeting each fortnight and this gives us an opportunity to discuss what’s new and how it might, or might not, work on our farm,” he says.

Participating in quality, industry-based workshops and programs would not be financially viable for the small business, without on-going support and funding through DairySA and Dairy Australia.

“It’s important that young people in the industry can develop their careers. DairySA and Dairy Australia help us do that by providing funding, workshops and information for people like Ty moving up the dairy ladder, and me as his employer,” he says.

“The levy really pays for itself through animal health and welfare and market information. The workshops and farm productivity information is just the start of what the levy offer us —we see it as much bigger than that.”

Together, Dairy Australia and DairySA:

– aim to build a sustainable and internationally competitive dairy industry for the benefit of farmers.

– deliver the best possible dairy research, development, extention and industry services across the supply chain.

– are funded by a combination of farmer levy, Government and leveraged funds.

DairySA is just one of many examples of Your Levy at Work. For information on your levy investments, visit www.dairyaustralia.com.au

^��The workshops and farm productivity information is just the start of what the levy o!ers us—we see it as much bigger than that._

Warren and Ty have participated in the following Dairy Australia and DairySA programs...Productivity

– FORAGE Skill$ – 3030 Fleurieu Partner Farm – CowTime— energy, milking time, dairy shed

design/flow, people time – CountDown Downunder – Cool Cows

TAFE Training – Feeding Dairy Cows in SA – Cups on cups off training – Diploma of Dairy Business Management

Effluent and NRM – DairySAT On Ground Works—

Mt Jagged Dairy Discussion Group – Soil Nutrient Mapping Project

The People in Dairy – Cows Create Careers – Dairy Careers – Young Dairy Farmer Network – Moo-vers & Shakers: Young Dairy Farmer Forum

Information – Situation and Outlook report – Discussion groups


The People in Dairy Online ResourcesVISIT US IN THE ‘PIANO BAR’ FOR LIVE DEMONSTRATIONS!

25

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27

Visit www.nrmspace.com.au - an innovative online ‘portal’ to support the region to manage its natural resources by providing access to:�

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nrmWEATHER͗�A display of data collected from the South East automatic weather station network to provide

more locally relevant climatic data to the region’s irrigators and the general community. Available data includes

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nrmIRRIGATION͗�A web based portal linking to information of relevance to regional irrigation enterprises. Links

within this module provide easy access to relevant information, ranging from Irrigation System Performance

Testing to Water Allocation Plans, which will assist landholders in the irrigation sector to maximise the potential of their farming enterprises.�

nrmMAPS͗�A web based spatial mapping portal providing a window into natural resource information of

relevance to projects and personnel working within the South East. nrmMAPS has a focus on monitoring and

evaluation and provides live links to many sources of monitoring data collected by agencies operating in the

region.�

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AltaLocklynAltaLocklyn (Shottle/Oman GP 84/ Durham VG87)(Shottle/Oman GP 84/ Durham VG87)

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Encircling the City of Mount Gambier and bounded by the Victorian Border, Wattle Range Council and the Southern Ocean, the District Council of Grant covers approximately 188,500 hectares and comprises some of the richest and most productive agricultural land in South Australia. …a progressive and caring Counciland proud supporter of DairySA Innovation Day 2012

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The Elders Mt Gambier Animal Health and Dairy Nutrition team consists of our experienced merchandise personnel and professional support from our Agronomists. As a team we provide an ongoing nutritional service for dairy herds with regular backup visits as well as on-farm assistance and advice.

We will be supporting the SE Dairy Innovations Day 2012, so please come see us with any questions on Dairy Health & Nutrition, Elders Mt Dairy Pellet & Pre-Mix Range, Agronomy, Prescription Fertiliser & Seed Blending, On-Farm Deliveries and Irrigation Water Monitoring.

Or contact our team on (08) 8725 0276.

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29

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9


The Australian Dairyfarmer magazine is proud to be the official media sponsor in 2012 of the Dairy SA Innovation Days, International Dairy Week, the Australian Dairy Conference, Dairy Business of the Year & South Gippsland Dairy Expo. “We’ve proven we’re here for the long haul. We have a proven track record of supporting the Australian dairy industry.” Alastair & Carlene Dowie. Editors of The Australian Dairyfarmer magazine for more than 21 years. For all advertising inquiries contact: Peter Roach 03 9344 9906 or [email protected]

31

Landmark Mt Gambier397 Commercial Street West T: 08 8724 7590

Look to Landmark for your first choice in dairy products and services. With access to the largest domestic markets and international partnerships, Landmark can assist you with all your dairy cattle requirements. We can also supply your dairy inputs and farm supplies, as well as working with you to insure your property. That’s why more Australian farmers look to us.

Landmark Mt Gambier proud sponsors of Dairy Innovation Day.

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Dairy Australia is proud to support a wide range of events, like !eld days, conferences and information seminars.

This is just one of the many ways you’ll see your levy at work.

Dairy AustraliaSharing knowledge and learning for the future

For further information please visit www.dairyaustralia.com.au

Documents

DairySA, Dairy Innovation Day · DairySA, Dairy Innovation Day ... reduce the current acid leaching problem and reduce the ... aspects of the farm system that are exceptionally good