Good accounts make good friends
In Sharemilking and Contract Milking, the phrase “good accounts make good friends” extends far beyond the dollars and cents (although we will come to that). If its in the agreement but it wasn’t documented – I can guarantee I have heard a dispute about it - Fertiliser, cow numbers, feed on hand, pasture cover, nitrogen used in previous seasons, feed fed in previous seasons, milk taken from the vat for calves.
But do you know what is very uncommon in 99% of these disputes? Written documentation or evidence (or “accounts”). As farm records improve because of changing dairy industry standards, it is a lot harder to hide behind poor record keeping. However, without a clear audit at the start or end of term, or clear communications in writing, it is really hard to resolve these disputes amicably. Surprisingly, even with good records there is always going to be someone who tries it on – just last week I had a farm owner adamant that they have always used this much nitrogen while I had the fertiliser records in my hand for the 5 previous seasons. Fortunately, because of the good records, from there it was quite simple to clear things up and get things back on track for next season for everyone.
So how can you take charge of “good accounts” in sharefarming?
If you are bringing on a new sharefarmer this season or you are a new sharefarmer on farm, book in a farm audit with a trusted consultant. This will look slightly different for everyone but as a baseline should cover pasture cover, feed on hand, condition of the shed, tracks and buildings, and power on the fences at various points.
Document all important business conversations. This doesn’t need to be a formal contract or set of meeting minutes, but a quick email summarising the conversation and the agreed points. This is especially useful when talking numbers and dates so everyone has something to refer back to.
Do a pre-move in/exit house inspection – either book a professional or do it together with the sharefarmer/farm owner. Photocopy inspection page in the back of the agreement or download a version from Tenancy.co.nz, take lots of photos, identify anything that needs to be repaired or cleaned, and send everything to the other party so they have a copy. Its also critical to do (at a minimum) the number of house inspections you are required to do by the insurance company – for both the sharefarmer and staff. No inspections, no insurance. And no inspections also equals no good accounts which certainly does not equal good friends.
Share all fertiliser records, feed quality dockets, animal records, contractor bills – the more transparent you are, the less likely there is to be a dispute.
Sharefarming is a very unique business to business relationship. I encourage you all to be transparent this season and to keep good accounts to stay good friends so you can have thriving business relationship.
