Fellow Gippslanders,
I am glad that Frank has reminded us all that deregulation and the
compensation package are still only maybes. From my reading the only
certainty is the ending of the Domestic Market Support.
However, being optimistic and assuming a compensation is offered the sharing
question is a tricky one. I think the package should be shared by those
with an interest in the farm business. This includes owners and
sharefarmers, but excludes employed labour - both permanent and casual
staff. In other words those that have made an investment in the business.
Richard
----------------------------------
Richard Williams
Dairy Project Officer
Kondinin Group
richard@kondinin.com.au
Ph: 03 5635 2394
Fax: 03 5635 2493
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-----Original Message-----
From: Frank Tyndall [mailto:ftyndall@s140.aone.net.au]
Sent: Thursday, 22 April 1999 9:41
To: gippsdairy-l@unimelb.edu.au
Subject: Sharing the deregulation package??
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.
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