Tailor made grazing deals on tap

In the new agreements, the parties can discuss the feed to be provided and how this could change during the year. Photo / File

Communication is critical to to ensure there are no surprises, Sarah Crofoot stresses, as fit-for-purpose contracts are drawn up

Good communication is crucial to a successful grazing arrangement.

This starts right from negotiation of the agreement so both parties have a complete understanding of the other's expectations and there are no surprises.

Reporting regularly allows the stock owner to have confidence that the stock will be returned in the expected condition at the end of the period.

Federated Farmers industry groups have been working together along with DairyNZ's legal partner DLA Piper to develop a new fit-for-a-purpose grazing agreement.

The agreement covers three separate types of grazing: heifer grazing, winter/seasonal grazing and dry-stock grazing.

Each grazing type has its own set of terms and items to be agreed on, tailored to the needs of stock owners and graziers in each circumstance.

Options are provided for three different payment methods: weekly fee, liveweight gain fee, or a kilogram of dry-matter fee so that the parties can select one to suit their situation.

The parties discuss the feed that will be provided and how this may alter for different times of the year.

There is also a clause for parties to address at the outset how a feed shortage will be handled. Some of the other items that are covered and agreed between the parties include warranties and treatments, weighing and assessment procedures, target weights and/or body condition scores, termination period and reporting.

It is important to get your grazing agreements signed early particularly if you are planting crops or growing feed specifically for another party.

Federated Farmers continues to update our contracts so they align with regulations and industry expectations, making sure farmers are getting practical agreements at an affordable price.

 The new grazing agreement is $80.50 (GST incl.) for members and can be purchased by calling 0800FARMIN (327646) or visiting our online store http://shop.fedfarm.org.nz/