Dear John and all,
How to share the deregulation package, if it happens, is a "corker" of a
problem. I wish you all the best in your group discussions, John.
There are two major inputs into a dairy farm, capital (land, machinery,
cows) and labour. Sometimes, both capital and labour are provided by one
family. Sometimes all the capital is provided by one family and all the
labour by another. Very often, it is a mix: the sharefarmer provides most
labour and some capital (say cows) and the owner provides most capital (say
land) and a some labour (say a bit of irrigating).
If deregulation lowers the price of milk, both labour and capital suffer,
by how much no-one knows. The price of dairy land could drop a bit, the
price of cows could drop a bit, the milk income could drop a bit.
So how should the package be shared? Based on capital invested, share
percentage, share of nett returns, or something else????
Should a 10% sharemilker get 10%?
Should a weekend milker who gets $5000 for the year get something?
Should an owner leasing land get all, or nothing?
Should a 25% sharefarmer, with no capital invested, get 25%?
What do you think?
Regards, Frank
Frank Tyndall
ftyndall@s140.aone.net.au
McMillan College, Univ. of Melb.
Sale, Vic, Australia.
03 5144 5377
Lecturer, Dairyfarm Management.
This archive was generated by hypermail 2b29 : Wed Mar 13 2002 - 16:50:34 AEDT