Contract milking is a farming arrangement where a farmer hires someone else to manage the daily running of their dairy farming business. The person contracted performs the milking and all the other associated farm tasks, while the owner of the business retains ownership of the land, the equipment, and the cows themselves. This arrangement is becoming increasingly popular among dairy farmers, particularly those who have other business interests or want to take a break.
In the contract milking agreement, the hired person is referred to as the contract milker. The contract milker takes on the day-to-day running of the dairy farm for a set period, usually one or two years. In exchange, they receive a salary, a share of any profits, or a combination of both.
The arrangement benefits both the contract milker and the farm owner. The farmer owner can free up their time for other pursuits, while the contract milker gains access to land, cows, and dairy equipment without having to own them. They also have the opportunity to build up their own farming experience and reputation.
The contract milker is entirely responsible for the business`s day-to-day operations, usually managing the herd, the milk production process, and the milk quality. They also handle the finances, including buying feed and other supplies, and managing the payroll for any additional staff. Any profits made by the farm are typically split between the contract milker and the owner, with the exact details of the contract varying from agreement to agreement.
Contract milking can be an excellent option for both the farm owner and the contract milker. However, the arrangement requires trust and communication between the two parties. It is essential that the contract is clearly and thoroughly written, outlining the responsibilities and expectations of both parties. Additionally, it is recommended that a legal agreement is drawn up to ensure the smooth operation of the farm.
In conclusion, contract milking is an increasingly popular arrangement in the dairy farming industry. It allows farm owners to free up their time while providing an opportunity for young farmers to gain experience and build their reputation. With careful planning and good communication, contract milking can be a mutually beneficial situation for both parties involved.