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Contract dairy heifer rearing can be a useful arrangement between two farmers to allow cow numbers to increase on a dairy farm while providing a steady and defined income for a dry stock or tillage farmer.
Communication and trust between the two parties is central to the arrangement. An agreed contract that clearly states the responsibilities and expectations of each party should be signed beforehand and reviewed annually.
Each agreement is specific between the two parties and will reflect the price charged per day. Costs relating to labour, veterinary bills, heat detection, AI and winter feeding will dictate how much is paid.
Another factor influencing the price is when calves arrive on the rearer’s farm and then return to the dairy farm. This can vary widely, although most agreements cover a period of around 600 days from weaning and to around one month before calving.
Typical heifer-rearing rates range from €1 to €1.50 (£0.88 to £1.32) per heifer per day, depending mainly on arrival age on the rearing farm. Bonuses and reductions can be added into contracts to incentivise reaching breeding and heifer growth targets.
Periodic weighing
Periodic weighing helps to ensure heifers are on target and is recommended on all rearing programmes, including conventional dairy farm rearing.
With a typical heifer-rearing contract costing around €750 (£662) per heifer over 600 days, it may initially seem expensive.
However, when all costs across the farm that relate to heifer rearing are considered, it can be an economical option.
The average heifer-rearing cost (birth to calving) among NI dairy farmers in CAFRE Business Development Groups was €2,003 (£1,768).
Another important factor is that a specialised contractor can often put more time and resources into rearing dairy heifers than would be the case on most busy dairy farms.
Dairy farmer
Kevin McGrade
Dromore, Co Tyrone
Last year was the first time we were involved in a contract heifer-rearing arrangement. There were 24 heifers taken to Declan and Aidan’s farm at around 12 months old. We are happy enough to keep calves here in the first year because there is space in the calf house and calves are useful during the growing season for grazing reseeds.
The heifers came back two weeks before calving on 8 August and a new batch of 26 heifers was taken over to Pomeroy on the same day. We are pleased with how the first year went. All heifers hit target weights and were well looked after.
There are still 40 heifers at home and I would like to get a second contract rearer to take more off my hands. It frees up labour and can allow more cows to be kept on the farm instead.
A heifer-rearing contract was drawn up by Dairylink adviser Conail Keown and signed by Declan, Aidan and myself. In our agreement, I pay for the semen, the AI technician and vaccinations.
Declan and Aidan then look after costs associated with feeding (both grazing and winter feeding), wormer treatments and scanning, as well as all management of the heifers and vaccine administration. A flat rate is charged per day and there are no bonuses or reductions.
Contract rearers
Declan Rafferty and Aidan Quinn
Pomeroy, Co Tyrone
The main enterprise in our farm partnership is suckler beef. However, the contract rearing enterprise allows a steady income every month and lets us increase the stocking rate without having to buy extra livestock.
For a few years, there had been silage left over and the dairy heifers were a way of utilising extra fodder. The heifers are lighter on ground than our beef cattle and the dairy stock were the first out at grass in spring.
We weigh the heifers regularly to track growth rates and make sure they are on target. The aim is to have heifers leaving the farm before calving at around 570kg to 580kg.
In the first 15 days of breeding, 19 out of the 26 dairy heifers on the farm have been served.
A teaser bull with a raddle is being used for heat detection and is working well. Heat detection patches were used initially, but some came off early and became dirty in the house, so we changed the plan.
Contract rearing - TB, or not TB?
Land mobility advisers recommend not becoming involved in a contract heifer-rearing arrangement if there is a history of bovine TB or a significant risk of a TB outbreak occurring in either herd. There are circumstances where heifers can leave a contract rearer’s herd that is closed with TB so they can calve down and be milked on the dairy farm. However, this can mean that the dairy farm becomes closed too.
From a biosecurity end, the fewer groups of livestock from different sources on the rearer’s farm the better. Although contracts should be reviewed annually, most rearers prefer the number of heifers coming on to their farm to remain similar each year.
In the Republic of Ireland, heifers can move between herds with a bed and breakfast (31B) movement form or else a standard movement (31A) form. In Northern Ireland, a standard movement (MC2) form is normally used or else a mixed herd contract house is set up, which issues a separate herd number on the contract rearer’s farm and movements are made through licences (MC2L).
Changes to nitrogen (N) loading should also be considered, especially if either farm is operating close to the 170kg (or 250kg under derogation) manure N/ha limit.
SHARING OPTIONS: