< Digest Paper - Balancing family aspirations with business objectives

Introduction

Balancing the family’s aspirations and harnessing the enthusiasm of the next generation led us to change from all year round calving to block calving. In addition we took on two additional farms through joint venture agreements and breeding cows to suit the systems, all whilst satisfying the needs of our customers for milk and calves.

We are currently farming 1350 acres on four farms with a lifetime tenancy, two contract farming agreements and an FBT with 520 cows in two herds and 300 replacements.

I have been farming within the Homer family all my life; I grew up in Warwickshire with my four brothers and parents. My mother and father retired 25 years ago in 1989 when Jane and I successfully tendered for a tenancy in Wiltshire. We started with 247 acres and 100 cows producing 600,000 litres, it was a real struggle to start with as all our working capital was swallowed up in milk quota. In 1996 we asked ourselves ‘should we carry on?’, we were highly geared financially as we were heavily borrowed with interest rates at 16% at the peak. Having sought advice we developed a business plan to increase output by having 200 cows producing 2,000,000 litres. At the same time 15 years ago we were invited to supply Waitrose, this gave us the confidence to implement our plan as the proposed scheme offered us added value and security. Whilst all this was happening we were rearing our own human replacements, (although we didn’t know it at the time) Chris, Geoff and Anne. In 2009 we took on another 380 acres where we reared dairy replacements and grew cereals, this was another important turning point for the business and we did very well for a few years. In 2011 the farm changed ownership and we thought we were going to have to put the business into reverse just as our sons wanted to come home and take an increasing role in the business. However, the situation changed again quite quickly, the new owners of the young stock farm asked us to continue farming it on their behalf, at the same time a friend who farms next door asked us so work with him to draw up a joint venture agreement. Warren Farm is a 480 acre dairy/arable farm which was being run as a 200 cow, high yielding, all year round calving system with loose yards and all employed labour. We decided between us that this system was not viable long term due to high costs and the dairy infrastructure required considerable investment to make it profitable.

Strategy

With opportunities for the development of the business we needed to identify and implement strategy for both the business and the people within it. The family members discussed our individual skills, aspirations and the strengths and weaknesses of our existing farming systems. This provided us with our strategic objectives and a platform to design the business plan. The common aspiration among all of us was to be a pasture based business as a basic foundation. We then realised we would have to make some considerable changes to the way we farm, to realise our ambition.

Change management

Before actually making changes it is of course very important to ensure everyone else who is important to the business agree and support our ideas, our proposed changes would impact on them also. The first port of call we decided had to be our customers Waitrose, Dairy Crest and Dovecote Park. Our ideal plan would involve a change in our ability to provide a level supply of milk and calves, to soften the impact we proposed that our herd at home would revert back to its roots autumn calving and set up a new herd next door spring calving. We also sought advice and guidance from our bank manager, accountant, consultant and vet, we are not sure if it was an advantage or disadvantage that we did not have much time to make these decisions, a lack of time helps to focus the mind and raise determination which certainly makes things happen.

The People

For the family business to succeed and enjoy the challenge of fulfilling our strategic objectives we clearly defined our roles and responsibilities. Bearing in mind we have already identified all our strengths and weaknesses and learnt to respect them, (which we think is very important by the way). David managing partner, Jane finance and admin, Chris livestock and grazing, Geoff soils forage crops and mechanisation, Anne calf rearer. Chris and Geoff each have an assistant which they are responsible for on a day to day basis. The family meet weekly and we have a full team meeting monthly, this is fairly formal with me acting as Chairman, we keep minutes and record action points to monitor progress which means individuals within the team have responsibility for specific jobs and can then report back. This provides accountability but also creates the opportunity for praise to be given and encourages team playing. This is a way of harnessing enthusiasm, a great way of motivating the team and individuals within it. These meetings are an opportunity for new ideas and proposals and of course discussing things which are not working so well. We identify KPI’s and then monitor progress at the meetings.

The Cows

The Chisbury Lane herd at home was started by my father in Warwickshire during the early 50’s and we still have several family lines within the 220 cows and followers today. We started with a 50:50 Friesian Holstein and during the 90’s bred more Holstein into the herd increasing yields to over 10,000 litres but keeping a focus on longevity traits. In the last five years I felt that I had bred a proportion of the herd too extreme for our system as we were trying to increase more milk from grazing. These cows have a phenomenal capacity for forage dry matter intake from a trough but not so keen on harvesting it for themselves in the form of fresh grazed grass. This shouldn’t really be a surprise to us as for decades we have been importing genetics from parts of the world where the majority of this type of cow would never see pasture, so surely evolution would eventually influence their diet and behaviour. For several years we have cross bred some of the most extreme Holsteins with Scandinavian reds to introduce hybrid vigour and reduce stature but have not necessarily introduced the grazing gene! What has certainly helped is ensuring all our replacements graze for as much of the two years up to calving as possible. More recently we have been cross breeding with Kiwi Friesian and have witnessed the difference in heifers straight away, they are much more aggressive grazers and happy to be outside on pasture particularly on the shoulders of the grazing season, it will be very interesting to witness how they perform when they join the milking herd.

The Warren Farm herd we imported from Ireland in December 2012, 150 Cows and 150 Heifers. This herd of Irish cross breeds certainly have the grazing gene and are definitely the outdoors type! These cows are very suited to the spring calving milk from grazing system it is definitely in their DNA, it has been fascinating for us getting know these animals they are like different species. Their general demeanour and behaviour was not what we were used to, we are not sure if it’s just because they are Irish after all! They have much more determination to leave the milking parlour and arrive at the fresh paddock after every milking they are certainly not TMR junkies. Although they are crossbreeds it doesn’t mean they are not of high genetic merit, Irish dairy farmers have been following the Teagasc research work at Moorepark (which incidentally is where many of our cows came from) for many years focussing on the mix of genetics to suit the specific system of spring calving and producing as much milk as possible from pasture. We imported the first year’s replacement heifers again from the same source and we will be calving in our own replacements from this herd in February.

Conclusion

I know we are not unique as a family farming business, but we are often asked how it is that all three children following education, working elsewhere and travelling, have become such enthusiastic farmers where we all get on so well, whether it be happily out working on the farm together or off duty. Jane and I think it may be because we never made any assumptions either persuaded or dissuaded them from following whatever career path they chose. We are also not the sorts that sit around the farmhouse kitchen table with our heads in our hands constantly complaining about how difficult farming is. Running any business in any sector has its every day challenges, but working together as a team finding solutions and driving forward creates a positive motivational atmosphere which the next generation have clearly demonstrated they wish to be part of. This is how the family is today, it will be interesting to see how the dynamics change as additions to the family are made in the form of daughter or son in laws.

David Homer
Chisbury Lane Farm, Chisbury, Marlborough, Wiltshire, SN8 3JA