In order for a contract rearing agreement to work long-term, it must be a win-win for both the dairy farmer and the contract rearer.
With the ongoing lack of clarity around the nitrates derogation; expensive land leases; difficulty in sourcing land and the ongoing shortage in labour; contract rearing heifers has piqued some farmers’ interest.
The contract rearer does not have to buy stock, yet they will have a steady income throughout the year without having the financial risk associated with producing and rearing their own stock.
Contract rearing your heifers might suit some farmers, but for many, there is no need to change the system if their stocking rate is not being affected and they are producing fit, healthy animals.
However, for those farmers who need to reduce their stocking rate without cutting their cow numbers have many options, including:
- Eliminating any beef enterprise on the farm;
- Contract rearing the replacement heifers;
- Buying in replacement heifers;
- Possibly dropping your cows to a lower nitrate band;
- Leasing additional land;
- Exporting slurry.
None of these options may be applicable to your farm, as the cost savings may considerably outweigh the outlays, but it is important to realise what you can do to reduce your stocking rate if needs be.
Contract rearing
Contract rearing heifers has become quite popular with many dairy farmers. The concept is quite simple: replacement heifers leave a farm and return around 18 months later just ahead of calving.
A contract is agreed with the farm that rears, setting the standards that are required from both parties. This can vary slightly from farm to farm.
For a contract rearing agreement to work, the dairy farmer must be confident that the rearer is capable of managing the stock by achieving good animal performance.
Target weight for their age must be achieved while ensuring that the heifers are returned in-calf and ready to join the dairy herd.
In order for the contract rearer to achieve these targets, they must receive healthy calves that got enough colostrum that will allow them to thrive.
In return for meeting targets, the rearer must receive a fair price for their labour and they must be paid on time.
The dairy farmer and contract rearer should be constantly in touch, giving updates on how the stock are performing and discussing any issues that have arose.
Every contract rearing agreement is different and in order for it to run successfully, both parties must be happy with the arrangement in place and understand what is expected of them.
Coming up with an agreement that covers every possible scenario is essential for both parties having a full understanding of the contract and to prevent any possible disagreements in the future.