With milk production starting in 2016, share farmer John Sexton said he couldn’t have had a worse year to get started, but he was still in a position to deliver a 4.25% return on investment to Shinagh estates.

For 2017, the return on investment is expected to be a minimum of 8% and a maximum of 9% based on current figures.

The farm is owned by Shinagh Estates, which in turn is owned by the four west Cork co-ops.

The farm of 34ha is located outside Bandon and until the end of 2015 was run as a heifer-rearing block. It was then converted into a dairy block.

Aims

James O’Donovan of Shinagh Estates said there were two aims behind the farm.

Firstly, to show what is involved in the conversion of a drystock holding to a dairy farm, and, secondly, to demonstrate the operation of a share-farming arrangement.

The only facilities on the farm was a cattle crush. A milking parlour, outdoor cubicles and a calf house, as well as associated concrete works, were funded by the land owners.

Share-farmer John Sexton was glad that he pushed for a 60:40 split of the farm income and advised anyone interested in getting involved in share milking to budget for a bad year.

Capital costs are carried by the land owner, with John taking up the production costs.

Gráinne Hurley, Teagasc, covering production figures for the Shinagh Estates farm.

Farm index

With 95% of the farm index one or two for phosphorus and 57% index three or four for potassium, spending is required to increase a higher proportion of the farm to indices of both nutrients.

The cost of this is carried by Shinagh Estates, while maintenance fertiliser costs fall to John. He also covers the health costs of the cows.

It helps that me and Shinagh have the same goals, we want to farm in the same way and it’s one of the key things if you are considering going into a partnership or share farming arrangement.

All these issues are covered in a contract and includes what grass cover and fodder stocks that must be on the farm should John decide to leave.

On that issue, John said: “This is an arrangement where both parties want the best. It’s in my interest to have this place running well, as my cows are going to gain and if the cows are going well, then Shinagh are also going to benefit.”

John said that finding someone you can work with is of great benefit to the success of any collaborative farming arrangement.

“It helps that me and Shinagh have the same goals. We want to farm in the same way and it’s one of the key things if you are considering going into a partnership or share-farming arrangement,” he said.

“Find like-minded people who want to farm the same way you do. It helps cut back on arguments and the outside facilitator is a help as well.

“John McNamara of Teagasc acts as a facilitator and sits in on the monthly meetings between myself and Shinagh.”

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