Move from suckler to contract rearer.

OptimisticJoe

Hello. Long time lurker, first time poster. Would appreciate the advice of the regulars here.
Like many, after years of struggling in the suckler end of things, I.v been thinking of moving
to contract rearing for a local dairy farmer. I want to do my homework before we have a
serious talk Would some of ye be able to advise of the rates being paid by dairy farmers
to contract rearers. What kind of questions should I ask. We would know each other well, and
neither of us are messers. But I want to have a clear idea of the costs involved. I have a
day office job, so it wont be my main income. Also only have 50 acres, so will be taking in
about 50 to 60 calves. In general, who pays for what.... would appreciate any advise given.
Farmer wants me to take calves in at approx 10 days old, and keep them til on the point of
calving. Thanks in advance.

yewtree

OptimisticJoe wrote: »

Hello. Long time lurker, first time poster. Would appreciate the advice of the regulars here.
Like many, after years of struggling in the suckler end of things, I.v been thinking of moving
to contract rearing for a local dairy farmer. I want to do my homework before we have a
serious talk Would some of ye be able to advise of the rates being paid by dairy farmers
to contract rearers. What kind of questions should I ask. We would know each other well, and
neither of us are messers. But I want to have a clear idea of the costs involved. I have a
day office job, so it wont be my main income. Also only have 50 acres, so will be taking in
about 50 to 60 calves. In general, who pays for what.... would appreciate any advise given.
Farmer wants me to take calves in at approx 10 days old, and keep them til on the point of
calving. Thanks in advance.

Most rearers don't take the calves that young due to labour and extra risk of young stock. its also much more expensive period.
A typical rate would be 1.30/day dairy farmer would cover cost of AI, supply bulls, transport to&from and also cost of vaccinations.
the 1.30 is buying a weight gain of 0.7kg/day. if heifers are below target coming to you, you should not be expected to bare cost of getting them back on target.
if I was you I wouldn't take the calves that young. I have my heifers on contract they go at 12 weeks and come back incalf September the year after. It can be a win win for both farmers, how you get on with the dairy farmer is very important.

Never wrestle with pigs

I've herd of someone near me getting 1.70 day for maiden Heifers to springers. He has to supply the fert and silage. So many variables.

If your going to do it I would travel the country and visit as many lads doing it as possible with the cow type you are getting. Gather as much information as possible. Get a proper contract drawen up by a solicitor. That way everyone knows where they stand from the start.

Don't forget about p&k losses leaving your farm.

Bass Reeves

You would want to be rightly set up to take calves at 10 days. Big risk is if he was registering them a few days older than they were. Have yo much experience with calves at that age. If you have not got that much experience I am not sure you k ow him as well as you think. With 50-60 calves you will have a lot of excess grass this year, and if you get the same next year you would want to be on the top of you game to manage them. If he wants to dump calves on you at 10 days I wonder is he under pressure either for calf sheds or labour. The other issue is if you cannot make out what you need to be paid for it to be viable I am not sure is it for you. A final thaught is have you 50-60 bales of straw or how do you intend to bed them

memorystick

OptimisticJoe wrote: »

Hello. Long time lurker, first time poster. Would appreciate the advice of the regulars here.
Like many, after years of struggling in the suckler end of things, I.v been thinking of moving
to contract rearing for a local dairy farmer. I want to do my homework before we have a
serious talk Would some of ye be able to advise of the rates being paid by dairy farmers
to contract rearers. What kind of questions should I ask. We would know each other well, and
neither of us are messers. But I want to have a clear idea of the costs involved. I have a
day office job, so it wont be my main income. Also only have 50 acres, so will be taking in
about 50 to 60 calves. In general, who pays for what.... would appreciate any advise given.
Farmer wants me to take calves in at approx 10 days old, and keep them til on the point of
calving. Thanks in advance.

If I were you, I would get him to move the cattle into your name and you submit your Single farm Payment form. Let him supply the inputs and you herd. Let him give you whatever you want per acre. I did it for 2 years and it worked out great for the both of us. I had the maps and E100 per acre cash. I could have looked for more but we're good neighbours



and still are.

patsy_mccabe

Never wrestle with pigs wrote: »

... Don't forget about p&k losses leaving your farm.

Don't follow this bit.

maidhc

I had a query last year from a farmer who was contract rearing. The contract was at an end, but the dairy farmer was being difficult about taking the stock back as he did not have enough fodder.

The issue sorted itself amicably, but goes to show the problems that can arise.

I farm 115 acres (on my own pretty much at this point) and work full time as solicitor. Low labour is all I care about on the farm. Have bought in weanlings in the past (and still do) and bring them to completion, but also took 30 hereford & limosin x bull calves last year at 3/6 mths.

I don't think the dairy beef situation is as bad as made out if the calves are ok. There is no mad labour, and no real risk of loosing your shirt.

If going into contract rearing I would suggest you charge enough, and agree premium payments in certain cases i.e. increases in fodder costs, stock not taken on due date.

If the contract is just a way for the dairy man to bolster his profits and the beef man to continue to loose 10/15% of his BPS, then it is complete and utter waste of time; you won't even get the enjoyment of looking at your own stock and will probably rent the land within 3 years; I know I would.

Buford T. Justice XIX

My advice would be to have a chat with Teagasc, they would have contracts done up to be fair to both sides and might be able to give you an indication of costs and responsibilities involved.


And keep an eye on a situation with TB outbreaks, either coming in or going out and who has responsibility for what.