Case Study

 

In 1996 John and his wife took on the tenancy of an 80 acre stock farm in east of Cornwall.

Appreciating that a farm of this size was always going to be marginal they maximised its potential by converting to an organic system and running pedigree sheep and cattle enterprises. They also supplemented their income with off farm employment; John relief milked on a part time basis for a couple of neighbouring farmers and his wife had a full time job as a secretary for a local business.

In 2005 with the removal of subsidies and general decline in prices it soon became apparent to John that the business was no longer viable and able to break even. Finances began to get very tight and he was forced to find more work off the farm to support his family. He also began to suffer with his health both mentally and physically.

In December 2005 John was faced with the dilemma of whether they could carry on and if the decision was to cease farming ‘where would they live’. They could not remain where they were if they were not farming. They did not have sufficient funds to be able to afford to buy their own home. John knew he needed to seek professional advice and contacted Fresh Start for help.

A consultant spent time with John reviewing the business and giving careful consideration to all his options but the final decision lay with John and his wife. After further consideration over Christmas they decided that the best option was to give up their tenancy and look for somewhere affordable to rent.

In March 2006, Fresh Start successfully helped John and his family secure a tenancy of a house in a village where the rent has been set at an affordable level. As this is still in the process of being built they can’t move in before September 2006. However, this fits in with the termination date of their farm tenancy which they have managed to negotiate with their landlord for the end of September 2006.

John is now setting about developing his interest in landscape gardening which he will do in addition to his relief milking service. His wife will also be able to remain in her full time employment.

The family is now feeling a lot less pressure and are ready to embark on a new chapter in their lives.

When Richard Screech starts his new dairy operation in the next few days, it will be the first time cows have been milked at Three Oaks since his father and uncle switched to beef production ten years ago.

Now Richard’s father, Terrence, is approaching 65, and making arrangements to enjoy his retirement – including scaling down his involvement, and renting the holding to his son.

"Dad has been really supportive," says Richard. "Dairy’s not his thing at all, but that’s what I enjoy doing. It offers a regular income, and I’m really confident I can make a go of it."

"I see it as the ideal time to start dairy farming – people are leaving the market, giving new farmers room to make their mark. I’ve done the sums and you can make it work, but you have to be really efficient: spend as little as you can on labour and get good systems in place from the start."

Richard will be helped in setting up his efficient milking system with grant aid from Cornwall Enterprise’s Dairy Collect scheme. Already, funds towards improved access means that he will be able to accept larger, efficient milk tankers, and a second bulk tank will be added in 2007, offering cost savings and volume bonuses.

Already, a consultant from the Fresh Start initiative has helped to make sure the new business will be viable. Richard will also benefit from ongoing advice and mentoring support, to help him steer the farm in the right direction.

With the new operation just a few hours away, Richard is excited and nervous, but also realistic: "I’m not hoping for miracles", he explains, "just to make a living."

A difficult first year hasn’t put first generation farmers Mark and Bridget Thomas off their ambition of running their own dairy farm.

This year’s extremely dry summer has reduced the quality of grazing, in turn affecting milk yields, and knocking the couple’s carefully-prepared budgets for six.

 

Despite the tough conditions, however, the satisfaction of being his own boss has made it an enjoyable year for Mark – who had previously worked on a number of other dairy holdings.

"There’s no substitute for making your own decisions," he explains. "It’s the realisation that – rightly or wrongly – whatever you decide really does matter."

Mark and Bridget had always hoped to secure a tenancy of their own, but had struggled to get beyond the shortlist stage. They therefore applied to Fresh Start, for help to look at the viability of their business proposal, and prepare a fully-costed tender application.

It made the difference. The couple were awarded a County Council tenancy, where they now farm a herd of Guernsey cows.

The Channel Island breed has proven a wise investment, allowing the farm to benefit from quality bonuses from their buyer Dairy Crest.

Meanwhile, a £3,500 contribution from Dairy Collect has helped to construct a level hard standing, enabling articulated tankers to turn safely.

Mark is grateful for the Cornwall Enterprise service: "Dairy Collect have been very good – and the new milk collection arrangements will make things an awful lot easier this winter!".

He also praises the ongoing advice and support from Fresh Start: "It’s great! When you’re struggling with a problem, you can always get advice".

The couple insist they have no regrets about committing their future livelihood to the dairy industry.

"We’ve come in at just the right time", says Mark. "Besides, it’s not about making lots of money. You only live once, so you might as well do what you really want to do."

With his 77th birthday fast approaching and his wife unwell, the daily stresses of dairy farming were losing their allure for Humphrey Eddy. With a heavy heart, he informed herdsman Dan Nattle of his decision to sell his beloved, organic herd of 100 "old fashioned" pedigree British Friesians.

A local farmer’s son, Dan had always harboured an ambition to milk a herd of his own, and the pair struck upon an idea whereby Dan would buy the cows, and keep them on Humphrey’s land.

They approached Fresh Start for professional advice and support to look at the most appropriate way to achieve this. This identified that a Farm Business Tenancy would be the best arrangement for both parties – enabling Dan to realise his ambitions, while providing Humphrey with a reliable income.

Fresh Start funded 70% of this support, which included an independent valuation of the herd, which Dan was able to buy with help from his family, and the formalisation of the tenancy agreement.

Since July, Dan has kept his new herd on 185 acres, leased from Humphrey. The former boss still lends a hand when his health allows, and has the satisfaction of still being able to see the Friesians on the land he has worked for 50 years.

What’s more, a £6,700 grant from Cornwall Enterprise’s Dairy Collect project has helped to pay for a new, concrete turning area for the large, articulated tankers used by OMSCo (Organic Milk Suppliers Cooperative) – helping Dan to keep supplying organic milk.

Dan sees this as key to the farm’s future: "Being organic is a great way to be different to your competitor. It’s a growth market, and there’s a good future in it."

Humphrey agrees: "Dan will reap the benefits of doing things differently – especially with the Friesians. They respond well to grass management, so are the ideal breed for the job.

"In the future, people will come back to producing and marketing food locally – and when that happens, it’ll be very good news for farmers like Dan."

Michael, 31, and his family have been dairy farmers for more than two generations,

with the 93-acre Laity Farm near Redruth being home to their prize-winning herd of

100 full pedigree Jersey cows since 1998.
After his father died in 2001, Michael and his mother took over the running of thefarm together.

In 2004, although Laity had supported the family for many years, the recent dramatic downturn in milk prices meant that the holding was no longer large enough to achieve economies of scale so in 2004 Michael started to look for a larger unit and approached Fresh Start for help.

Fresh Start helped Michael to find a new holding and provided him with his own farm business consultant who helped him tender successfully for a 192 acre Cornwall County Council dairy farm.

This new farm is twice the size of Laity and has better facilities. The consultant helped Michael to prepare a fully costed business plan and apply for the tenancy which he successfully won in the summer of 2005.

Since then Michael hasn’t looked back. He has already built his herd up to 200 cows and has moved from year-round calving to spring calving to take advantage of more plentiful grass in March and April.

Michael has now retained the services of his consultant through Fresh Start which will meet 70% of the costs for up to two years.