Sea-change and a steep learning curve

Jenni Vernon, past chair of Environment Waikato, says the switch to sheep and beef farming was made for lifestyle reasons.

01-03-2010 | Mike Bland

Gordon and Jenni Vernon's decision to sell their Waikato dairy farm and buy a sheep and beef block had some people thinking they'd gone nuts.

Their Te Mata neighbours didn't believe Gordon would ever leave the family farm and their sheep and beef farming friends couldn't understand why they would want to farm drystock when dairying was so much more profitable.

But Jenni Vernon says the move was more about lifestyle than money. "We both knew we weren't committed dairy farmers."

The decision to sell the dairy farm was made at Waihi Beach during a break away from the farm in 2008. Jenni, who has a long history of work in local government and was chairperson of regional council Environment Waikato from 2004 to 2007, says the time seemed right for a change. Their two sons had left home, Jenni had just finished at Environment Waikato and Gordon, who had been dairying for 40 years, was getting tired of the daily routine.

"I'd had enough of milking cows. It was becoming a drag," he says.

At 93ha and milking 180-200 cows, the farm wasn't big enough to support a manager or contract milker and was too small to run as a drystock block. The Vernons considered the option of staying on the family farm, south of Raglan, and switching to once-a-day milking to free up more time, but their preference was to sell the farm and make a complete change.

Everything happened quickly after that. With the dairy payout at $7.90/kgMS and good demand for small dairy units, the Te Mata farm sold fast and at a good price.

The Vernons had been studying sheep and beef farm sale advertisements for properties as far away as the South Island but they really wanted to stay in the Waikato. When they got home from the beach after making the decision to sell the dairy farm they saw an ad for a farm at Te Akatea on the Waingaro Road between Ngaruawahia and Waingaro. They visited the farm and felt an instant attraction. They made an offer on the same day and it was accepted. It was the first and only farm they inspected.

Then it was time to take short deep breaths and contemplate the massive change they had just made.

While they could have taken time out after selling the Te Mata dairy farm to think about their future and research the real estate market more thoroughly, they wanted to get into sheep and beef farming as quickly as possible and were happy to follow their instincts. The timing was also good because lamb prices doubled soon after.

"My mother always said that ‘opportunities only come once'," Gordon says.

Jenni offers a Confucian-style proverb that also sums up the switch from dairying to sheep and beef. "It's a strong fish that swims against the tide."

She says the Te Akatea farm, near Glen Massey, had everything they wanted. It had been well farmed by its previous owners, Richard and Annette Miller, was well-located, had few weeds and offered fertile Mairoa Ash soils and a good mix of contour.

The farm totals 297ha and is split into two blocks - the 227ha home block and a nearby 72ha block which is leased with the right to buy. Contour ranges from easy rolling to medium hill, with steeper limestone bluffs. The farm was well-fenced and fertilised.

The Vernons took over in June, 2008, and have thrown themselves in to sheep and beef farming with great gusto and enthusiasm. They bought the farm as a going concern, starting initially with 1400 Romney ewes and 200 cattle, mainly steers. Since then they have experimented with various breeds and stock mixes as they attempt to develop their own system.

"It has been a case of trial and error," Jenni says.

It has also been a steep learning curve for the couple who had virtually no experience with sheep. Gordon says he had to crutch wether lambs in the first two weeks on the farm and the job "almost killed me".

Fortunately the sheep knew their way around the farm because the Vernon's early attempts to shift them using the Huntaway the previous owners had left them proved fruitless.

"We weren't used to handling dogs because we didn't need them on the dairy farm," Gordon says.

He ran out of patience with the dog three months later. "We'd actually made arrangements with the vet to have the dog put down, but on the day it was due to happen we couldn't catch him."

The next day the dog started to do his job.

During the first year the Vernons employed casual labour to help out while they learned the ropes. Neighbours and other sheep and beef farming friends have provided valuable help and advice.

"We learnt to dock lambs by docking with the neighbour," Jenni says.

"We soak up everything we are told and the nice thing about sheep and beef farmers is that everyone is willing to share information and every enterprise is so different."

When they arrived on the farm they found the previous owners had left them a bottle of wine and a book that contained a list of paddock names and a detailed calendar of farming operations. Jenni says this "little blue book" has proved an invaluable guide.

The Millers were good farmers and the fact the farm was well set up was an attractive feature for the Vernons because it allowed them to hit the ground running. After getting the first season out of the way, they were keen to stamp their own mark on the farm.

"We are easing ourselves into it and working out which class of stock we like and what type of system we feel is best for this country."

The Vernons have joined a "proactive" beef farmer group facilitated by Sally Lee, AgFirst, and Jenni was recently elected on to the mid-Northern Sheep and Beef Council.

"We are hugely privileged with the network we have."

She believes that coming from a dairying background has helped them take a fresh approach to their sheep and beef operation.

The Vernons employ contractors for shearing and fencing and their son Simon, a student at Otago University, helps out during the holidays. Otherwise they run the farm on their own.

One of the first things they did after arriving was draw up a five-year plan outlining some of the development work that could be undertaken to increase farm production while also improving environmental sustainability.

The plan highlighted the need for more subdivision and water reticulation, particularly on the easier contour. During the past year the Vernons have erected over 10km of fencing and installed 3-4km of new waterline. The eventual aim is to gravity feed water to most of the farm, reducing the reliance on natural waterways.

Gordon and Jenni have already started fencing and planting waterways but they admit they have a long way to go. "It's a huge capital outlay and it's not something you can do in a day."

As the former chair of Environment Waikato, Jenni is conscious that people may be closely watching what they do. She says she and Gordon are genuinely passionate about environmental sustainability and it's not just a case of walking the talk.

"I'm certainly more aware of it because of my previous job. But it's everyone's responsibility."

Fertiliser is flown on to most of the farm using a helicopter, which though more expensive than a fixed-wing plane, is more accurate and keeps fertiliser away from waterways. Gordon dresses the easier contour with a spinner.

The Vernons have also begun fencing areas of native bush, as well as planting poplar poles for erosion control.

Up until now much of this work has been funded by cashflow. Because they got a good price for their dairy farm, the Vernons, who also own a share of a 100ha forestry project at Te Mata, were able to buy the larger drystock farm without increasing debt.

Gordon says the plan to fund all the development work via cashflow came unstuck because of the recession and the lag effects of the 2008 drought. Until production cranks up, it looks likely that further capital for development will have to come from off-farm.

n More, p24.

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