dairybase level 1 physical questionnaire training guide · · 2015-05-261.9 percentage of milk...

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DairyBase Level 1

Physical Questionnaire

Training Guide

March 2015

L1 Training Guide – March, 2015 2

Table of contents:

Introduction ............................................................................................................. 5

Section 1 – Basic farm business description ............................................................... 8

1.1 Farm business name .......................................................................................... 8

1.2 Client name ....................................................................................................... 9

1.3 Season (seasonal year) ...................................................................................... 9

1.4 DairyBase ID number ......................................................................................... 9

1.5 Balance date (month) ...................................................................................... 10

1.6 District council ................................................................................................ 11

1.7 Dairy company(s) and supply number(s) .......................................................... 11

1.8 Farm business type .......................................................................................... 12

1.9 Percentage of milk revenue received ............................................................... 14

Section 2 – Additional physical description ............................................................. 14

2.1 Organic farm (certified) ................................................................................... 14

2.2 Winter milk ..................................................................................................... 15

2.3 Calving season ................................................................................................. 15

2.4 Predominant breed ......................................................................................... 15

2.5 Milking interval ............................................................................................... 16

2.6 Irrigation used (not including effluent) ............................................................. 16

2.7 Production system ........................................................................................... 17

Section 3 – Land farmed ......................................................................................... 19

3.1 Milking platform (ha) ....................................................................................... 19

3.1.1 Effective area (Milking platform) ............................................................................. 19

3.1.2 Ungrazable area (Milking platform) ......................................................................... 20

3.1.3 Total area (Milking platform) ................................................................................... 20


3.2 Support block area (ha) .................................................................................... 21

3.2.1 Effective area (Support block) .................................................................................. 21

3.2.2 Ungrazable area (Support Block) ............................................................................. 22

3.2.3 Total area (Support block) ....................................................................................... 23

3.3 Non-dairy area (ha) .......................................................................................... 23

3.3.1 Effective area (Non-Dairy) ........................................................................................ 24

3.3.2 Ungrazable area (Non-Dairy) ................................................................................... 24

3.3.3 Total area (Non-Dairy) ............................................................................................. 24

3.4 Milking platform area changes during the season .............................................. 25

3.5 Land owned and leased .................................................................................... 25

3.5.1 Land owned .............................................................................................................. 25

3.5.2 Land leased .............................................................................................................. 26

3.6 Support block land purchased/sold during the season ...................................... 27

Section 4 – Milk production .................................................................................... 27

4.1 Milk production for financial year and seasonal year (production year) ............ 27

4.2 Milksolids Production components (kg), fat (kg), protein (kg) and milk volume

(litres) .............................................................................................................. 29

4.3 Milk production total ....................................................................................... 30

Section 5 – Peak cows milked ................................................................................. 31

5.1 Peak cows milked ............................................................................................ 31

Section 6 – Labour .................................................................................................. 32

6.1 Unpaid labour ................................................................................................. 32

6.1.1 Unpaid management labour .................................................................................... 33

6.1.2 Unpaid family labour ................................................................................................ 34

6.2 Paid labour (external staff member) ................................................................ 35

6.3 Examples of Different Labour scenarios and how to record them .............................. 36

6.3 Number of weeks worked during the year ........................................................ 36

6.5 Hours per week worked ................................................................................... 37

Section 7 – Supplementary feed on hand ................................................................ 38


7.1 Change in feed inventory ................................................................................. 38

7.2 Feed inventory calculator ................................................................................ 39

7.3 Template and Examples for collecting feed inventory change ................................... 42

Section 8 – Land valuations and sales, purchases during the year and Leased land .. 43

8.1 Land valuations ($) .......................................................................................... 44

8.1.1 Total Ha ........................................................................................................... 44

8.1.2 Rateable capital value ($) ................................................................................. 45

8.1.3 Date of revaluation .......................................................................................... 45

8.1.4 Revaluation district .......................................................................................... 46

8.1.5 Area sold during the year (ha) ........................................................................... 47

8.1.6 Estimated market value (excluding shares) ....................................................... 47

8.2 Land and buildings purchased during the year .................................................. 48

8.7 Leased land ..................................................................................................... 48

APPENDICES ........................................................................................................... 50

Appendix 1: Level 1 resource checklist ........................................................................... 50

Appendix 2: DairyBase registration form ....................................................................... 51

Appendix 3: Obtaining milk production information from Fonterra website ................... 53


Introduction

This guide has been prepared to aid the data collector in understanding

how the data should be collected, where the data can be collected from, the

importance of the data and how it is used.

The level 1 questionnaire is the set of information that will allow a farmer

to start on DairyBase and basic benchmarks to be established. It is important

to spend time on and complete the level 1 questionnaire correctly as it

underpins every DairyBase report.

If unsure on how to deal with some issues when completing the

questionnaire it is important to make good notes when with the farmer and then

contact DairyBase for advice (See back cover).

If a farmer has previous season data entered in DairyBase, review data

entered for previous seasons before the interview with the farmer.

Essential areas of the questionnaire to spend time on and get correct are:

• Client Name

• Trading Name

• Balance Date

• District Council

• Farm Business Type

• Portion of milk revenue received

• Effective area, support block area, land owned, land leased

• Milk production for financial year and production year

• Peak cows milked

• Unpaid labour

• Paid labour

These areas have the biggest influence on reported key performance

indicators (KPI’s)

Advise dairy farmers to have the information mentioned in the “Level 1

resource checklist” (Appendix 1) available before the interview. This will save

time when completing the L1 questionnaire.


A summary of relevant notes can also be entered in the “FARM NOTES”

section on the “Entry Select Category” page, e.g. how unpaid and paid labour

has been handled, or land capital values. It is important to indicate the season it

relates to, your identity and the date the notes were added. Other rural

professionals (RP’s) working with the client can view this information prior to

data entry.

Enter relevant farm notes here including…

Season the notes relate to

The identity of the author

Date the notes are written

Remember to press “Save” when finish or notes will be lost when exiting this screen.


Sections 1 to 6 are compulsory to complete and are used to generate

a DairyBase financial or level two physical report.

Section 7 and 8 are required when a financial analysis of the farm

business is performed.

Section 7 is required to adjust the business financial accounts to

reflect any changes in inventories of supplementary feeds which may

under or overstate farm profit. Complete section 7 if changes in feed

inventory are significant enough to make a difference to the farm’s

financial performance.

Completing section 8 is required to calculate the financial return on

assets owned or leased by the business.

Section 8 should be completed when a farm business owner owns or

leases any land and wishes to receive a DairyBase full financial

analysis (showing return on assets and return on equity).

Section 8 is compulsory for all farms involved in the baseline project

as these farms require a full financial analysis.


Section 1 – Basic farm business description

1.1 Farm business name

Name of the farm business (legal entity used for trading). The Farm

Business to be analysed may include more than one supply number, and

may be represented by more than one financial entity (e.g. company and

trust).

Relevance:

The Farm Business name is reported on the DairyBase analyses and

should represent the main trading entity

Recommendation:

Take time to verify exactly what is to be analysed and what financial

information is required to match the physical data collected. Ensure

the client understands.

E.g. the farm Business name is J & M Smith Ltd. The client has

indicated that this entity has all the trading information such as milk

revenue and related costs.

- The following question should be asked: Does the entity J & M

Smith Ltd own all the assets (cows, land plant etc) that is used in

the dairy operation?

- If the answer is no then the client should be asked which entities

contain these assets (e.g. does J & M Smith partnership owns

some plant?, does J & M Smith Family trust own all the land

assets?.

- Ensure the client understands that all entities will need to be

provided for a complete financial analysis

Record the Farm Business name as the main trading entity – in the

above example it would be J & M Smith Ltd

A DairyBase analysis can be done for a farm with more than one

supply number when it is not possible to separate the financial

information for each supply number


Baseline farm analyses should be for only one supply number so the

business must be able to supply the full financial information (trading

and capital information) for just the one supply number.

1.2 Client name

Name of the farmer(s) providing the information. This is not necessarily

the same as the farm business name.

1.3 Season (seasonal year)

This refers to the dairy production season (e.g. 2013/14) being collected,

and comprises from 1st June (2013) to 31st May (2014) of the following

year. This may be different from the financial year for the business

Recommendation:

Be sure to write the season being surveyed on the front of the

questionnaire.

Ensure the farmer is aware what season you are talking about.

Ensure the data in the L1 questionnaire is entered into the correct

season on DairyBase.

1.4 DairyBase ID number

This is a unique number assigned to each farm business in DairyBase at

the time of registration.

Relevance: The DairyBase ID number helps to:

Identify a farm business (it is unique for each farm).

Differentiate it from other businesses with similar name.

Ensure data is entered for the right farm.

Recommendation:

Enter DairyBase ID if the client is already registered. The DairyBase

ID can be found in the title of a Workflowmax job (e.g. J00xxxx -


BaselinePhys; Farm name; 123456; 2013/14) or by searching the farm

business name in DairyBase.

Screenshot of DairyBase “Your Farms” page

XXXXXXXX

If the farm business is not registered in DairyBase, it can be

registered by calling the DairyBase Support Centre, by email, or by

completing the DairyBase registration form (Appendix 2) and

returning it to the DairyBase Support Centre.

1.5 Balance date (month)

It refers to the month comprising the last day of the financial year for the

farm business (Table 1).

Table 1: Month and financial year for different balance dates in DairyBase.

Month Balance date Financial year

March 31 March From 1 April to 31 March

April 30 April From 1 May to 30 April

May 31 May From 1 June to 31 May

June 30 June From 1 July to 30 June

Relevance:

This parameter is used to ensure all milk produced during the

financial year is accounted for as this needs to match the financial

data (i.e. income from sale of milk).

All financial KPI’s are based on the financial year milk production,

and all physical KPIs are based on the seasonal year milk production

(milk produced during the seasonal year is used for all the level 2

physical analysis)

DairyBase ID


Recommendation:

If the balance date is not 31 May then milk production data needs to

be collected for both the financial year and the seasonal year

(Section 4).

1.6 District council

This is the Government TLA (Territorial Local Authority) that collects

rates for the farm business e.g. Whangarei, Selwyn. There are 73

districts in total. If farming across different districts select the district that

best represents the farm business.

Relevance:

Used for benchmarking regions, sub regions and districts.

Recommendation:

Ask which district council the rates for the milking area are paid to.

1.7 Dairy company(s) and supply number(s)

This is the name of the dairy company milk is supplied to. There could be

more than one for an individual farm business.

Relevance: This parameter is used to:

Identify how many supply numbers are included in the analysis (e.g.

sometimes level 1 and level 2 data is collected for one supply

number only, but the financial data includes 2 supply numbers).

Avoid duplication of farms (so DairyBase can accurately track

number of farms in database).

Assists with validation of milk price e.g. Tatua often has higher milk

price than other Dairy Companies so if milk price is outside expected

range but client is a Tatua supplier then the validation warning may

be ignored.


Recommendation:

Enter all the dairy company name(s) and individual supply number(s)

from which revenue is included in this farm business (e.g. Fonterra

99999, 88888).

Confirm that the financial information that will be provided does

include all supply numbers being analysed, and that it is not possible

to separate the operating revenue and expenses for each supply

number.

If they can’t be separated then the analysis and data

collected should cover all supply numbers.

If they can be separated it may be possible to complete a

“lite” financial analysis and physical detail analysis for each

supply number in which case the level 1 data should be

collected separately for each supply number.

1.8 Farm business type

Describes the ownership structure of the farm business (Table 2).

Table 2: Farm business type.

Business type Owns (or leases) land

Owns (or leases) herd

Portion of milk revenue received

Owner operator 100%

Owner with ’50-50’ sharemilker 40 - 60%

Owner with variable order sharemilker or contract milker

majority 60 - 99%

’50-50’ sharemilker 40 - 60%

Variable order sharemilker maybe a few 20 - 40%

Contract milker maybe a few

<23% (North Island) or <19% (South Island)

Diverse ? ? Varies

The “Diverse” business type should be used if none of the other types

are applicable, e.g.


’50-50 sharemilkers’ with more than one sharemilking job and a

contract milker is employed on one or more of the extra jobs.

When a farmer owns one farm and sharemilks on another and the

financial information cannot be separated for the 2 farms. In this

instance the farm business owns/leases all cows and some but not

all the land

When a farm business owns more than one farm and operates one

as an owner operator and one with a 50-50 sharemilker, lower order

sharemilker or contract milker, and the financial information cannot

be separated for the 2 farms. In this instance all the land is owned

and only some of the cows.

When financial data is atypical and would result in the farm business

being excluded from benchmark e.g. lots of non-dairy trading in

accounts (This will allow level 2 data to still be included without

impacting on financial benchmarks).

Relevance:

Farm business type is used to form financial benchmarking groups

Recommendation:

Equity partnerships that receive 100% of milk revenue are Owner

Operators. It is the percentage of milk received which helps

determine the business type – not the business structure.

When a sharemilker owns milking land and leases it back to the farm

owner they sharemilk for, and all other revenues and expenses are

consistent with a standard sharemilking agreement, the sharemilkers

business type can still be ’50-50 Sharemilking’ - (the milking land

owned by the sharemilker would be considered an off farm

investment for the financial analysis – make a note for the financial

analyst in farm notes regarding this situation)

As the “Diverse” business type does not have a specific benchmark

group, farmers in this group should be benchmarked against the

business structure that is closest to their business.

Make sure the farmer understands why the business type is not as


they might expect and that it could well be different the following

year.

1.9 Portion of milk revenue received

This refers to the percentage of total milk revenue for the farm business

included in the accounts (or $/kg milksolids received). This varies

according to the business type (See section 1.8 Farm business

type).

Relevance:

This is used by financial analysts for validation of milk revenue

received which can help identify incorrect recording of Business type

or indicate that entities may be missing e.g.

A farmer business type says “Owner operator” but milk revenue in

financial statements only reflects 50% as there are two entities

owned by common shareholders and one sharemilks for the other (or

the business employs a contract milker).

If a farmer business type says “Owner operator” but the percentage

of milk revenue received is not 100% then the business type or the

milk percentage need to be reviewed.

Recommendation:

Only one measure for portion of milk revenue received is required (either

percentage of milk revenue received or $/kg milksolids).

Section 2 – Additional physical description

2.1 Organic farm (certified)

Describes whether the farm is certified organic. Only fully certified farms

paid an organic premium fit this category. If not given, the accounts can

be checked to see if an organic premium has been paid. If farm is

transitioning from a traditional dairy farm to an organic dairy farm “No”

should be entered.


Relevance:

This parameter is used to form benchmarking groups.

2.2 Winter milk

Only farms that produce milk during winter and have a winter milk

contract fit this category. Enter “No” for farms just milking empties for an

extra month (extended lactation/carryover cows). If not given, the Dairy

Company statement may be checked to see if a winter milk premium

has been paid.

Relevance:


2.3 Calving season

This is the calving season for the herd: spring, autumn or spring and

autumn (split calving). If the herd calving pattern does not fit these

options then select “other” (e.g. year round)

Relevance:


2.4 Predominant breed

This refers to the predominant breed in the milking herd: Friesian,

Crossbred, Jersey, Ayrshire and Other breed.

Relevance:

This parameter helps to estimate cow liveweight in the level 2

questionnaire.

It helps provide a picture of the farm and its resources. i.e. adds

context to the stocking rate.


Recommendation:

Select Friesian if 70% or more of the herd is formed by Friesian cows or

if the herd is crossbreed cows that are more than 70% Friesian.

Select Crossbred if the herd is greater than 30% of one breed of cow

and less than 70% of another breed, or the herd is crossbred cows that

are between 30/70% of one breed.

Select Jersey if 70% or more of the herd is formed by Jersey cows or if

the herd is crossbred cows that are more than 70% Jersey.

Select Ayrshire if 70% or more of the herd is formed by Ayrshire cows or

if the herd is crossbred cows that are more than 70% Ayrshire

Select Other Dairy for breeds that are not Friesian, Jersey or Ayrshire.

2.5 Milking interval

The most common milking interval is twice a day. Some farms have once

a day milking interval (either for part of the season or all the season).

Relevance:


Provides a picture of the farm business and context for milk

production

Recommendation:

Herds that only milk once a day at the end of the season or only on

rare occasions in a drought (e.g. after January) should be recorded

as twice a day, as they generally once a day for less than 16 weeks.

Herds that run split mobs where one mob is twice a day and one is

once a day all season should be recorded as “Other”. Make note of

the split in farm notes.

2.6 Irrigation used (not including effluent)

This is irrigation for the application of water only. Areas irrigated as part

of the effluent system are not considered in this category.


Relevance:


Recommendation:

If a farmer has irrigation available but it is not used they can decide

which group they want to belong to. Make a note in the farm notes

for the financial analyst so any validation warnings in DairyBase

relating to irrigation costs can be dealt with correctly.

2.7 Production system

The type of production system is determined by the amount of imported

feed offered to the milking herd (excluding young stock grazing) and in

conjunction with when the imported supplement is used.

Imported feed includes:

Imported supplements i.e. supplements not grown on the

milking platform but grown at support block or bought from a feed

supplier.

Off-farm dry cow grazing (winter grazing) and

Supplements made on-farm in prior seasons but fed to the

herd in the current season e.g. feed made on-farm the previous

season but fed to the herd in the current season.

Production System should reflect imported feed only, not feed made

on the milking platform and fed out in the same season it was made.

Consideration should also be given to the level of cost associated

with the feed imported and quantity fed. For instance a farm that has

14% imported feed/winter grazing could be classed as a Production

System 2 if the majority of the imported feed is from winter grazing

(low cost infrastructure). Whereas a farm with 14 % imported feed

that is coming from solely imported Maize and PKE would definitely

be a system 3.

Types of production system:


System 1: All-grass self-contained farm. Cows can be fed

supplements made on farm in the current season, but no imported

supplements are fed to the herd and no cows are grazed off the

milking area.

System 2: Approximately 4 to 14% of total feed is imported for dry

cows (either as supplements imported or winter grazing off). In

high rainfall areas and cold climates such as Southland where

most cows are wintered off, a higher upper limit in percentage of

feed imported is acceptable. Farms that use between 4-14%

imported feed to bridge feed shortages at any time during the year

should also be classed as production system 2.

System 3: Approximately 10-20% of total feed is imported and fed

at any time during the lactation.

System 4: Approximately 20-30% of total feed is imported and

used at any time during the lactation and for dry cows (winter

grazing-off). A farm that has 22% imported feed (ie just inside the

range for Production system 4), that is largely winter grazing

would be classed as a Production System 3.

System 5: More than 30% of total feed is imported and used

throughout the lactation and for dry cows (winter grazing-off).

Relevance:


Helps provide relevance to other farm information. e.g. High feed

costs are likely if the business is a system 5

Recommendation:

Do not spend a lot of time deciding on what the production system is

at this point. When filling out the level 2 questionnaire and reviewing

the reports it may become apparent what system the farm actually is.

This can be changed later.

Farms feeding 1-2 kgs of meal or grain per cow per day for most of

the season might best fit in System 3.


Where farms import feed in the spring only e.g. Westland, enter

system 3.

Section 3 – Land farmed

It is important to take time to collect data of land farmed accurately as

the parameters in this section are important for DairyBase calculations

and comparing businesses properly. Land farmed is split into 3

categories: milking platform, support block and non-dairy land.

3.1 Milking platform (ha)

This is the total land area which is grazed by in-milk cows. Young stock

may also be grazed or supplements and crops grown on the milking

platform.

3.1.1 Effective area (Milking platform)

Effective area is the land available for grazing and cropping. It excludes

ungrazable areas.

Relevance:

The effective milking area is one of the most important values to

have correct. In DairyBase all per hectare KPI calculations are based

on the effective milking area. It also impacts physical KPI’s relating

to feed used.

Recommendation:

Take time to record this parameter accurately. Get a good

understanding of how the area is used, what classes of stock are

grazed on the area and what feed is made and imported. This will

aid the identification of ungrazable land and support block areas. It

will also assist with collection of data for the level 2 questionnaire if

that is required.


Effective milking area should always be less than the total milking

area (usually 96 to 97% of total milking area) due to loss of grazing

area for cowsheds, races and houses and other buildings.

GPS of the farm may be available as an indication of effective area.

3.1.2 Ungrazable area (Milking platform)

This is the area (ha) of the total milking platform that cannot be grazed or

cropped. It is the difference between the Total milking area and the

effective milking area. This includes waste areas, waterways, races,

drains, buildings and forestry. Land grazed by non-dairy animals or by

young stock, carry over cows etc is not ungrazable land. The ungrazable

area should be added to support block/non- dairy if it is in land where

in-milk cows never graze.

Relevance:

This can give an indication of the quality of land being farmed (land

that is more hilly often has more waste areas)

Recommendation:

Always verify what contributes to the ungrazable area to ensure only

ungrazable land is included, and that it does not include any land

that is grazed by young stock, dry stock or non-dairy animals.

3.1.3 Total area (Milking platform)

This is the total surveyed farm area (ha) available to the business for in-

milk cows to graze, including effective and ungrazable areas and

excluding support block and any non-dairy land.

Relevance:

Milking platform land area is cross referenced against milking

platform land owned and leased to ensure all land is accounted for.

The total area milking platform is used in validation calculations to

cross check all land recorded as farmed matches the financial

information provided


It is useful to compare with effective milking platform area to highlight

any large differences which may then be questioned further e.g.

sidling’s being included as ungrazable instead of being defined

support land because dry cows graze there

Recommendation:

Effective and ungrazable areas must equal total milking area farmed,

unless there has been land area changes during the year due to land

sales/purchases or changes in leasing of land

The milking platform should also include winter crop areas where

these are grazed by in milk cows at any time during the year (either

while as winter crop or while it was still in pasture). These winter

crop areas often change from year to year so including the area

cropped as part of the milking area would allow for consistency

across years for all per hectare calculations. However, in regions like

Southland where the area in winter crop is out of pasture for 12

months (and is only grazed by dry cows pre calving) the winter crop

area should be added to Support block area.

If in multiple seasons the same area is used for cropping and is not

grazed by in-milk cows, it may be considered as support block, even

if it is attached to the milking platform.

3.2 Support block area (ha)

The support block area is land available to support the milking area by

providing grazing for young stock, dry cows or the supply of

supplementary feed for either dry or in-milk cows. Cows in milk are not

grazed on support blocks.

It does not include the area used for non-dairy operations (unless the

non-dairy area cannot be financially separated from the dairy business).

If any of the support block is owned the DairyBase financial analysis will

include a financial adjustment to reflect the use of the land.


3.2.1 Effective area (Support block)

Effective support block area is the land available for grazing dairy dry

cows and for growing crops (eg maize) and supplementary feed that may

be used by either dry or milking cows.

Relevance:

The effective support block area is shown on the DairyBase reports.

It is important to have this correct as it provides context when

reviewing and analysing a farm business e.g. a dairy farm with

access to a support block may have a different cost structure and

labour requirements than one with no support block.

Recommendation:

Discuss how the land is used and what classes of stock are grazed

there as this can help decide how to define the land used.

Where the support land includes areas not as productive as the

majority it may be necessary to record the total area in the farm

notes and enter the land area relative to its productivity e.g. support

block of 50 ha - 10 ha’s is largely swampy and can only be grazed

for 4 months from January to April would be recorded as 44 ha

effective.

3.2.2 Ungrazable area (Support Block)

This is the area (ha) on the total support block that cannot be grazed or

cropped. It is the difference between the total support block area and the

effective support block area. This includes waste areas, waterways,

races, drains, buildings, and forestry (if the forestry is not deemed to be

non-dairy).

Relevance:

This can give an indication of the quality of land being farmed e.i.

land that is more hilly often has more waste areas.


Recommendation:

Always verify what contributes to the ungrazable area to ensure only

ungrazable support land is included.

3.2.3 Total area (Support block)

Total area (ha) of the support block is the surveyed land area of the

support block that is farmed including the effective area and the

ungrazable area.

Relevance:

Support block land farmed is cross referenced against support block

land that is owned and leased to ensure all land is accounted for.

The total area support block is used in validation calculations to

cross check that all land recorded as being farmed as support block

matches the financial information provided.

Recommendation:

Effective and ungrazable areas must equal total support block area

farmed, unless there has been land area changes during the year

due to land sales/purchases or change in leasing of land

3.3 Non-dairy area (ha)

Only record non-dairy areas separately if the non-dairy farming activities

(e.g. beef, sheep, contract grazing, horticulture or forestry) have financial

information (revenue, expenses and assets) that is easily separated from

the dairy farming information.

Ungrazable land (bush, races, drains, swamp) is not non-dairy. It should

be added to either ungrazable Milking area or Ungrazable Support Block

as appropriate.

Recommendation:

Ask the client if the non-dairy trading is able to be separated from the

Dairy trading in the financial statements


3.3.1 Effective area (Non-Dairy)

The effective area (non-dairy) is the land that can be grazed/cropped or

is in production. It does not include ungrazable areas or land that is used

for buildings or infrastructure.

Relevance:

It is reported as part of the physical information and provides context

to the reports. It is not used in any KPI’s.

3.3.2 Ungrazable area (Non-Dairy)

The ungrazable area (non-dairy) is the land (ha) that is not productive. It

is the difference between the total area (non-dairy) and the effective

area.

3.3.3 Total area (Non-Dairy)

Total area (non-dairy) is the surveyed land area of non-dairy land that is

farmed including the effective area and the ungrazable area.

Relevance:

Total area (non-dairy) farmed is cross referenced against Total area

(non-dairy) land that is owned and leased to ensure everything is

accounted for.

The total area (non-dairy) is used in validation calculations to cross

check that all land recorded as being farmed as Non-Dairy matches

the financial information provided

Recommendation:

Effective and ungrazable areas must equal total area (non-dairy)

farmed, unless there has been land area changes during the year

due to land sales/purchases or change in leasing of land


3.4 Milking platform area changes during the season

If the milking platform area changes during the season the farm business

should be excluded from benchmarks. Enter into farm notes the following

details.

The change in area of both effective and total hectares

The date the land became part of the productive area or was

removed from the milking platform.

Where did the land come from e.i. purchased, leased, changed from

ungrazable to grazable, was part of support block.

If there was a change in the milking platform area during the financial

year, enter in DairyBase the weighted average land area (effective,

total) for the year e.g. if a farmer has 50 ha effective milking area

and they added 20 ha effective two thirds of the way through the

year, adjust to 57 effective hectares for the year. Add the total extra

20 ha’s to total milking platform farmed. The increase in ungrazable

land will reflect the fact that the land was not farmed for the whole

year. In this case total area farmed will not match land owned/leased

at opening.

If milking platform was purchased during the season but did not

contribute to the milk production do not enter it as part of milking

platform area farmed. Still record details in farm notes for the

financial analyst.

3.5 Land owned and leased

3.5.1 Land owned

This is the land area (ha) from each of the land types farmed, milking

platform, support block and non-dairy that is owned by the farm

business.

Relevance:


Support area owned (ha) is used to calculate the support block

adjustment which affects the financial analysis. This should reflect

what it would cost if the business leased the land at market rates.

This is used for validation checks in the financial analysis to ensure

all land owned is accounted for correctly.

Recommendation:

It is important to get the split between owned and leased land correct

as this affects operating profit calculations

Owned and leased land equals total area farmed.

If the effective support block area is significantly less than the total

area, then a note needs to be made for financial analyst as to what a

more appropriate market lease should be. DairyBase support block

adjustment values are available on the website. Ask the farmer “what

would you pay if you were to lease this land on the open market?”

Sharemilkers do not usually own milking land. If milking land is

owned then review the notes under business type (See section 1.8:

Farm business type).

3.5.2 Land leased

This is land area (ha) leased from external sources.

Relevance:

This measure is used for financial validations to make sure leases

can be correctly allocated to milking platform, support block or non-

Dairy

Important to get the split between owned and leased land correct as

leases paid for milking land are treated as an interest cost and are

excluded from operating profit calculations.

Support block leases are treated like grazing costs and do affect

operating profit.


3.6 Support block land purchased/sold during the season

This is support land that is purchased or sold during the season.

Relevance:

This measure is used to make adjustments to the financial analysis

when owners purchase or sell support land part way through the

year. It affects the owned support block adjustment

Recommendation:

If support land is sold during the year make sure to enter the

hectares sold as a negative number. Support land purchased during

the year is entered as a positive number

It is important to get the correct date ownership of additional land

occurred as this determines the proportion of support block

adjustment assigned to the area e.g. land purchased March 1 (for a

May balance date farm) will generate an adjustment that is for 3

months.

Section 4 – Milk production

Milk production is the main driver of revenue (90%) for dairy farms and is

the primary measure used for estimating dairy farm feed usage.

4.1 Milk production for financial year and seasonal year

(production year)

When the balance date is 31 May (May balance month), the financial

year aligns with the seasonal year, both are from 1 June to 31 May the

following year. In this case, only milk production data for the financial

year needs to be collected.

If the balance date is not 31 May (i.e. 31 March, 30 April, 30 June or

other balance months) production data (kg milksolids or kg fat, kg protein


and Litres milk) must be collected for both the financial year and the

seasonal year.

Relevance:

Financial year milksolids is used in the calculation of all financial ‘per

kgMS’ KPI’s.

Milksolids for the financial year and the production year are used to

calculate MS per ha for both financial year and production year.

Production year milksolids is used in all the physical detail report

milksolids related KPI’s

Production year milksolids is used in the physical detail report for the

calculation of farm feed usage in the absence of milk component

data

Milk production data for the financial year matches milk supplied by

the farm business in the farm business financial accounts.

Milk production data for the production year matches milk supplied

by the farm business to the dairy production season.

Recommendation:

Only enter milksolids total when the milk component data is not

available (Figure 1).

Where the balance date is not May the milk production data will be

from across two seasons e.g. March Balance date the financial year

milk solids will be April and May of the prior season and June to

March of the current season (Table 3)


Figure 1: Screenshot of fields to enter milk production data in DairyBase

Table 3: Collection of milk production data (kg milksolids, kg fat, kg protein, Litres

milk) for financial year and seasonal year for different balance dates.

Balance month

Milk production data to collect:

For financial year For seasonal year

March From 1 April to 31 March From 1 June to 31 May

April From 1 May to 30 April From 1 June to 31 May

May From 1 June to 31 May Not needed

June From 1 July to 30 June From 1 June to 31 May

4.2 Milksolids Production components (kg), fat (kg), protein (kg)

and milk volume (litres)

These measures refer to the volume of milk and milk components

produced by the farm business. If the farm supplies (sells) milk to more

than one dairy company or end user (calf rearer or independent cheese

maker) make sure all milk sold is captured here.

Relevance:

Describes the milk composition for a herd: fat percentage, protein

percentage, which can provide further context to the farm physical

data.

Production Year data is also needed if balance date is not May 31st


Is used in the calculation of the energy requirements of the herd. In

the absence of milk composition detail breed average data is used

which will be less herd specific.

Is necessary should milk income be recalculated using a

standardised milk price.

Recommendation:

Information of fat (kg), protein (kg) and milk volume (L) supplied by

the farm business should be collected whenever possible because it

adds to the accuracy of the data.

Data can be sourced from milk production statements or from the

milk processor website. Fonterra suppliers can access their

information online at “Farm Source” (Appendix 3).

Always check the milk components recorded add up to the total

milksolids stated.

Always check the milk fat and milk protein are recorded in the correct

order. Milkfat should be greater than milk protein in the majority of

cases – if protein really is higher, make a note in farm notes so

analysts are aware of the situation. This will avoid unnecessary

checking.

4.3 Milk production total

This is the total milksolids produced for the financial and the production

year where the balance date is not May.

Relevance:

The total milk production (kg MS) is used in place of the sum of

the components (fat and protein), when there is no milk

components data available.

Recommendation:

Total milksolids should only be entered when the milk

components data cannot easily and quickly be obtained (Figure

2).


When both total milksolids and milk component data are provided

check the sum of the components is the same as the total

milksolids then use the component data only

Figure 2: Screenshot of fields to enter milk components or total milksolids production data in DairyBase

Section 5 – Peak cows milked

5.1 Peak cows milked

The peak cows milked refers to the highest number of cows milked

(including in-milk carryovers) that significantly contributed to milk

production for the season. For spring calving herds this would usually be

some time during the spring peak for the season, and for autumn calving

herds this would be during the autumn peak.

For split calving herds this is the sum of cows milked at the peak for each

calving season.

Where cow numbers increase after the peak use a weighted average

based on their contribution to the seasons milk production.

Relevance:

It is not necessary to enter total milksolids when the component data is provided


This measure is used to estimate per cow KPI’s. It is important to

have this measure correct as it affects physical and financial report

results.

Peak cow numbers are used in the calculation of farm energy

requirements which is part of the pasture eaten calculation in the

physical detail report

Recommendation:

Include any cows in a separate sick mob even though they are not

milked into the vat they are still eating feed on the farm.

If cows come into a herd half way through the season assess if it is

significant enough to be included in peak cows. A weighted average

can be used to determine the number of peak cows when cows are

added to the herd:

E.g. 300 cows August till Jan then 305 cows till May is

((300*10months) + (5*4 months))/10 = 302 cows for the year

Cows added to the herd late in the season within one month of

drying off should not be included in peak cow numbers.

Section 6 – Labour

Labour for a farm business includes all labour both unpaid and paid

involved in the business. It should include time involved in daily

operational tasks as well as time taken in the management of the

business e.g. administration and strategic planning.

6.1 Unpaid labour

This refers to the number of weeks per year and hours per week worked

by unpaid labour in the farm business. This includes people who work on

the farm and take drawings or are supported by the farm business. This

is usually the farm business owner and family members who work on the

farm and manage the business. This farm work would have to be done

by paid labour if these unpaid people were not available.


Relevance:

This is used to estimate an unpaid labour adjustment and to adjust

the business financial report to account for unpaid labour.

The unpaid labour, together with paid labour gives total full time

equivalent (FTE) labour units for the farm business. Total FTE is

used to estimate KPI’s for efficiency: cows per FTE and kg MS per

FTE.

Recommendation:

The number of weeks employed during the year refers to the number

of weeks actually worked and does not include holidays. For unpaid

labour this may be up to 50 weeks assuming farm business owners

did not work on farm 14 days of the season in total.

The unpaid labour adjustment generated from the number of unpaid

FTE’s should reflect what the business would need to pay to replace

these people on the farm for both farm work and management of the

business.

6.1.1 Unpaid management labour

This refers to the number of weeks and hours worked in a management

capacity by unpaid labour.

Relevance:

This measure is used to estimate the management labour

adjustment. DairyBase estimates the management labour

adjustment based on one unpaid management unit working a

maximum of 2400 hours per year, and the average market farm

management salary. Any management work above 2400 hours per

year (up to 3600 hours per year) is included in the labour adjustment

as unpaid family labour using an average market farm worker salary

rate.

This measure adds context to the business analysis as it shows the

unpaid contribution by the owners to the business


Recommendation:

Any unpaid management hours over 3600 is ignored by the system

as it is considered that any one person working that much is

probably not effective and is not working in a management capacity

for these excess hours.

Do not use the “Add new” button for “UNPAID-Management” in the

labour section of DairyBase as this could lead to exceeding 3600

hours (Figure 3). In DairyBase, one FTE equals 2400 hours at the

management rate.

Figure 3: Screenshot of Labour section of DairyBase form

6.1.2 Unpaid family labour

This refers to the number of hours worked per year in activities other

than farm management. If unpaid family labour was not available these

tasks would be performed by general farm staff.

Relevance:

This information is used to estimate an unpaid family financial labour

adjustment estimated using an average market salary for farm staff.

The number of unpaid family labour FTE’s adds context when

reviewing a DairyBase analysis.

Recommendation:

Include children as unpaid family only if they are doing work that

would otherwise be done by the parents or by paid staff.

Do not use


For 50-50 Sharemilkers or Variable order/contract milkers do not

include work done by the farm owner unless it is work that should

have been done by the sharemilker e.g. if owner does the relief

milking for nothing, include these hours as unpaid. If the owner is

clearing scrub and building new fences don’t include the hours as

this is not an obligation under the sharemilkers.

6.2 Paid labour (external staff member)

This is all external staff members who worked for and were paid by the

business either wage or salary earners OR by receiving their income as

a share of the farms milk revenue directly from the dairy company e.g.

50/50 sharemilkers or variable order sharemilkers/contract milkers.

Relevance:

Paid labour is added to unpaid labour to give total labour for a

business and is used for KPI measures for efficiency e.g. Cows

per FTE, MS per FTE.

Paid labour FTE’s provides context when looking at a business.

Recommendation:

Includes labour for calf rearing, relief milking and casual workers

as well as paid farm managers.

Excludes any specific contract work such as cultivation or fencing

if it has been attributed to another (non-wages) expense category

such as repair and maintenance.

Include family members that are paid wages through PAYE at

market rates which reflect what an external party would be paid to

do the work.

Do not include farmers who pay themselves a nominal wage

through PAYE. PAYE arrangements should be reflected in the

notes section so that the wages amount can be adjusted to reflect

just the external parties paid through wages. PAYE to farmers

needs to be excluded in order to standardise calculations. These

Farmers would be entered in the unpaid labour section


6.3 Examples of Different Labour scenarios and how to record them

Unpaid

Management Unpaid Family

Member External (paid

staff)

Scenario 1 - Husband and wife working on the farm together get paid with “whatever's left over at the end of the day”.

1 1

Scenario 2 - Company that employs a 50/50 SMer with 2 staff

3

Scenario 3 - Sharemilker that employs a Herd Manager and 2 FA

1

3

Scenario 4 - Farm Owner of a forestry conversion that employs a CM who has 2.5 staff

1

3.5

Scenario 5 - Farm Owner with LOSM + 3 FA. FO + 1 staff run the dairy support block

1

5

Scenario 6 - Equity partnership that employs 4 staff – one being an equity partner

4

Once the number of people involved in the business have been identified time

can then be taken to estimate the weeks and hours per week worked

6.3 Number of weeks worked during the year

This is the number of weeks worked during the year excluding holidays.

Relevance:

This is used to estimate the total FTE of labour used to run the farm

business based on 1 FTE = 2400 hours or 48 weeks at 50 hours per

week.


Recommendation:

Weeks worked excluding holidays are 48 since by law all employees

must have 4 weeks holidays. However once all statutory holidays are

included actual weeks worked are more like 46 as there are 11

statutory holidays per year.

Check how the data was entered in prior years and try to be

consistent so that only real changes are reported.

e.g. 1 person full time may be recorded as 48 weeks 50 hours per

week one year and then 46 weeks 50 hours per week the next

even though the actual labour was unchanged a difference would

be recorded in DairyBase.

6.5 Hours per week worked

This is the hours per week worked on average during the year.

Relevance:

This is used to estimate the total FTE of labour used to run the farm

business based on 1 FTE = 2400 hours

Recommendation:

The actual hours per week worked used in the calculation of FTE’s

as follows:

61 hours + = 70 hours

Full Time = 50 hours

26-40 hours = 32 hours



< 8 hours = 5 hours

It may be necessary to juggle the weeks worked if the average hours

worked is quite different from the above options e.g. 38 weeks at 40

hours per week could be entered as 48 weeks 26-40 hours or 30

weeks full time to better reflect the true hours rather than 38 weeks

26-40 which would under estimate the hours by nearly a third.


Section 7 – Supplementary feed on hand

7.1 Change in feed inventory

This information allows DairyBase to adjust the business financial

analysis to reflect any changes in supplementary feeds inventory. It

includes feed from all sources including that from and used on support

blocks.

Feed on hand entered in the level 1 is not used in any level 2 feed

calculations because it relates to both the milking area and support land

(level 2 only deals with feed used on the milking area).

It also only relates to the financial year whereas the level 2 relates to the

seasonal year (June 1 to May 31). It does however provide a good

starting point for evaluating feed used on the milking area for the level 2.

Increase in feed on hand - The financial impact of paying for feed

and not using it in the season it was purchased is a cost has been

incurred but no benefit gained in the season, therefore in the

financial analysis feed costs for the year are reduced by the value of

the increased feed on hand at the current feed adjustment values.

Decrease in feed on hand - The financial impact of using feed on

hand and not replacing it in that season is a benefit from using the

feed has been gained but no costs have been incurred in that year,

therefore in the financial analysis, feed costs for the year are

increased by the value of the decreased feed on hand at the current

feed adjustment values.

Relevance:

Used to generate the feed adjustment which impacts on the financial

analysis.


Recommendation:

Collect the closing feed on hand if possible even if there has been no

change for the season being analysed so subsequent years data

collection will have opening feed on hand

If opening feed on hand is unknown still collect closing feed on hand

and enter it in the calculator so it will be there for the next seasons

opening - but do not click the calculate button. If no better estimates

for change in feed on hand are provided then assume there is no

change and enter “Same” and 0 for the change in inventory

If the change in inventory data is provided as one figure in tonnes dry

matter (t DM) this can be entered directly into the “enter change in

feed inventory cell – It is not necessary to have the breakdown of

feeds for the change in inventory. However if the level 2 data is being

collected as well it might be useful to get the breakdown at this point

Check the information provided is Tonnes of DM not kg DM.

Check the information provided is DM not wet matter.

The feed inventory adjustment does not apply to Lower

order/contract milker business so feed on hand does not need to be

collected for this business type.

7.2 Feed inventory calculator

Assists with the calculation of change in feed inventory, especially when

feed on hand is provided in quantities other than tonnes of DM (Figure

4).

Relevance:

Once “calculator” is clicked it will automatically populate and

overwrite the Change in feed inventory

Recommendation:

If Hay, Silage, Maize and meal are given in tonnes DM use the add

new toggle for Other and enter them in tonnes DM. It is not


necessary to convert them to bale equivalents, cubic metres or wet

matter

Always check feed units and bale sizes e.g. on the forms maize is

often filled in against the cubic metres section but is given in tonnes

DM so check the units provided.

A conventional bale is defined as one small bale 15-20 kg DM in

weight. Refer to DairyNZ Facts and figures for definitions of other

bale sizes.

Meal, palm kernel and molasses are commonly reported as wet

tonnes. Always check you are recording Dry Matter where

appropriate

If data entered in the calculator is to be used for the calculation of

change in feed inventory click calculate.

Remember to update the box for question “Is the amount of

supplementary feed on hand at financial balance date more or less

than last year?” to match the change in feed inventory

If the data entered in the calculator is only for future record and is not

to be used in calculating the Feed inventory change please make

notes in farm notes giving background to the data collected and why

it was not used


Figure 4: Screenshot of the feed inventory section of DairyBase

Click calc to access feed

inventory calculator

Always check the

correct bale size is used

If feeds are given in Tonnes DM use the “Add New” toggle and enter them here. It is not necessary to convert the feeds to other units

Update this box to more or less if

there is a change in feed on hand


7.3 Template and Examples for collecting feed inventory change

Use this template to capture the feed used on the farm.

Deal with one feed at a time: identifying the source and destination of

each item of feed and verify the units for each feed source i.e. bales and

size, wet matter, dry matter (is it kg or tonnes) or cubic metres. Example:

o John has 100 t DM maize silage at the start of the season. He

feeds 30 t DM in the spring and then the rest in Feb/March. He

grows 5ha of maize silage on the farm (22tDM/ha), (5*22 = 110T

DM), and buys in another 120 t DM from a local contractor. At the

end of the year he has 80 t DM maize silage left in the stack for next

spring.

o No grass silage was made on farm this year to replace the 27 t DM

(150 bales/12Beq) they had at the start of the year to feed over

winter so they bought another 30 t DM from BOP for next winter.

o 220 t PKE (198 T Dm) was bought and fed with the maize throughout

the year.

o When the R2 heifers came home early from their grazing (1st April)

John bought another 20 t (18T DM) PKE to help put on weight.


Note the above example has had all feeds converted to tonnes of DM .

Section 8 – Land valuations and sales, purchases during

the year and Leased land

This information is compulsory to collect for all clients undertaking a full

financial business analysis where any land is owned or leased by that business.

Capital valuations for land owned by the business at the start of the financial

year, as well as details of any sales and purchases of land are used in the

calculation of opening and closing land, building and development assets in a

DairyBase financial analysis.

Information regarding leases for milking land and support land enables the

financial analyst to correctly allocate leases paid as shown in the financial

statements.

Recommendation:

Level 1 and 2 data collectors should enter the data into the farm notes.

Opening

Feed on

Hand

Closing Feed on Hand


Ensure that the hard copy of the data collected is sent into DairyBase to be

attached to the job in Workflow max so that is then available for the

financial analyst

8.1 Land valuations ($)

Record the details relating to the land valuations, total hectares, latest

capital value and district (Government TLA) for the land

8.1.1 Total Ha

The total hectares for each category of land owned at the start of the

season should be recorded here.

Relevance:

Used in conjunction with leased land details as a cross check with

land farmed, owned and leased data entered in level 1

Recommendation:

The total hectares for each class of land owned should be recorded

here. They should match what is entered in level 1 land owned at

the start of the season.

Rates notices for land owned usually have hectares as well as

valuations so data can be found there.

If land information is based on several separate titles, record the

information for each title. The add new button can be used to enter

the titles individually in DairyBase.

If land information is in one title but covers more than one category

of land use, split the information between relevant land categories.

Make a note in farm notes to explain this.

e.g. 150ha title is used 100ha for milking land and 50ha for

support.

50:50 sharemilkers and lower order sharemilkers/contract milkers

who own land used in their business should be recorded here.

Details for any land leased should not be entered here.


8.1.2 Rateable capital value ($)

The rateable capital value (RCV) is the latest government valuation of

land and improvements for a property.

Relevance:

The current capital valuation for land and improvements is revalued

to calculate estimated current opening and closing market values

using revaluation factors that reflect market movement for the year

being analysed.

The calculated estimated opening and closing market values that

contribute to the capital KPI’s and benchmarks.

Recommendation:

RCV can be found on a current rates notice, valuations certificate or

from the local district council website or office. If using rates notices

make a note in the farm notes of the date of the invoice as this can

help identify the actual year the valuation applies.

If rates notices or valuation certificates are not available, try to get

the rapid rural number address details for each block of land. This

makes it easier for the financial analyst to locate the RCV.

Make sure it is the capital value (land and improvements) that is

recorded and not just the land value (both capital and land values

are quoted on rates demand so it is important to clarify the correct

one with the farmer).

8.1.3 Date of revaluation

The date of revaluations indicates when the last revaluation for a

property took place. Most district councils revalue property every 3 years.

Relevance:

This provides context to the capital value supplied and is used in the

calculation for revaluing capital values to current market values.

For example:


If a capital valuation is for 2012 but the season to be analysed is

2013-14, to revalue to opening market value the revaluation factor

used will reflect 1 year of market movement. To revalue to closing

market value the revaluation factor will reflect 2 years of market

movement.

Recommendation:

Revaluations always occur after July and rates are set at the end of

June. A rates notice for the financial year 2013-14 will be based on

Capital values set prior to June 2013, therefore the valuation date

cannot be 2013.

Keep a copy of the district revaluation dates handy as a cross

reference (Valuation dates for each district are available on the

DairyBase website:

http://www.dairynz.co.nz/farm/dairybase/support/support-materials/

Often a quick call to the local district council can get all information

required for a farm.

If an old capital valuation is inadvertently used e.g. 2009, but is

recorded as 2012 then the valuation factors applied are incorrect and

so calculation of asset values will be incorrect.

8.1.4 Revaluation district

The revaluation district is the district council (Government TLA) the land

is in and the rates are paid to.

Relevance:

See Section 8.1.3 for revaluation date. The wrong district and date

will mean incorrect valuation factors are used and again the

calculation of total assets will be incorrect.

It is used in validation checks to ensure the correct date for the

district is used.

Always verify the date that the valuation applies to

ttp://www.dairynz.co.nz/farm/dairybase/support/support-m


Recommendation:

If the land owned is in more than one district use the add new

function and enter the correct district and date for each title of land.

The district council will be recorded on the rates notice.

8.1.5 Area sold during the year (ha)

Record any area of land owned at opening of financial year and sold

during the financial year.

Relevance:

This information is used in the calculation of closing assets by

adjusting opening assets to reflect sale of the land.

Recommendation:

Collect hectares and date sold.

It can be helpful for the financial analyst to also get address or

valuation details for the parcel of land sold and record these in the

farm notes.

8.1.6 Estimated market value (excluding shares)

This is optional. Estimated market values for Land, Buildings and

development can be used when there is better current market

information for the value of the land and improvements than the capital

value.

If Estimated market values are used this is what will be shown on the

reports.

Capital values still need to be collected as this is what is used in the

benchmarks.

Relevance:

Using estimated market values can add value to an analysis

particularly when the client is focused on capital and wealth KPI’s.


Estimated market values can also add to an analysis when there

have been significant recent changes to the land, buildings and

development e.g. in conversion situations.

Recommendation:

Make sure both an opening estimate and a closing estimate are

recorded (financial year).

The estimates must apply to the season being analysed and not

what is current at the time of data collection (often 18 months after

the start of the season under review).

8.2 Land and buildings purchased during the year

This information is used for calculating closing values for land, building

and developments.

Relevance:

Purchases of land buildings or development during the year are

added to opening capital values and sale of land information so

closing assets reflect additional purchases.

Recommendation:

It is important to get details about the type of purchases e.g. dairy,

support, non-dairy or development.

The purchase price can be obtained from completed financial

statements.

Make notes in the farm notes section which can be verified once the

financial statements are entered.

It is also helpful to get the date of title transfer.

8.7 Leased land

Record the hectares leased and the lease paid for Dairy and support

block land.


Relevance:

Useful for the financial analyst to correctly allocate leases paid

between support block and milking area - support leases are entered

as operating expenses and milking land leases as rent and interest

costs

This is also used to validate that farm owned and leased is

consistent with what is recorded in section 3.5 (land farmed and

owned).

Recommendation:

Be aware of of Maori Leases/WestCoast leases where the business

may own a lease i.e. they own land and lease land and it is the same

block of land. Make notes so the financial analyst is aware.

The leases paid should be GST exclusive. Make a note in the farm

notes if this is not the case.


APPENDICES

Appendix 1: Level 1 resource checklist

Quotable Valuation certificates, or a recent rates notice, for all land

owned at the start of the financial year (note: this is land owned at the

start of the financial year not farmed for the whole year)

Stock reconciliation for the season being entered and Peak cows milked

Annual dairy company final production statement (note: for a March

balance date you will need to have the previous year’s monthly

statements for April and May available as well)

Statement/record of supplements on hand at the start and end of the

season

Labour data (include relief milkers)

Number of staff

Average number of weeks worked (per staff member)

Average number of hours worked per week (per staff member)

Labour data Unpaid

Weeks and Hours per week you and your family have worked in the

business as unpaid labour

Prior year’s financial statements – this may help with:

Land owned at start of the year

Land leased for milking platform and for support block

Farm map

Total dairy area

Total support block and non-dairy area

Effective Dairy area

Effective Runoff and Effective Non-dairy area.


Appendix 2: DairyBase registration form


Appendix 3: Obtaining milk production information from Fonterra website

Fonterra Farm Source website (for Fonterra milk suppliers):

Total production for season (litres, fat, protein, milk solids) Average Somatic Cell Count for season Milk solids to 31 Dec sold to factory Average production for 10 days at peak Last date of peak Average daily milk solids for last 10 days in December

1. Go to Fonterra Fonterra Farm Source website https://nzfarmsource.co.nz/ . This will take you to the farmer home page

2. Enter username & password in Farm Source login.

Click here to log into

Farm Source

https://nzfarmsource.co.nz/


3. Under the ‘Milk Production & Quality’ section select the farm supply number which you are collecting data for (red circles)

4. Select “Create a custom report”


5. Select date range (step 1), frequency of data (step 2), farm and season (step 3), and measure(s) to collect data for (step 4), and copy Total/Average into the corresponding field in the level 1 or level 2 questionnaire (step 5).

1

2

3

4

5

The date range to collect data for: Start and end

of financial year (milk production for financial

year), 1 June to 31 May (milk production for

seasonal year), 1 June to 31 December (milk

production till 31st Dec), the dates covering the

5 days before and 5 days after peak milk

production (peak milk production), milk

production in the last 10 days in December.

The frequency of data displayed: A monthly

summary helps to identify the month when

the peak occurs while a daily summary helps

to identify the 5 days before and 5 days

after peak milk production.

* To obtain the SCC season average for Level

2 questionnaire use the daily summary

average

The farm(s) and season(s) data is being

collected for.

The measure data is being collected for: kg

MS, kg milkfat, kg protein, litres and SCC (kg

milkfat and kg protein are displayed when

“other measures” in this menu is clicked).

Copy the value in the total / average field into the corresponding field in the L1 and L2

questionnaires. For “Average daily milksolids per cow for 10 days at peak (kg)” obtain the milk

produced from 5 days before the peak to 5 days after the peak, add any milk produced during

this period that is not capture in the milk statements (e.g. milk fed to calves and discarded milk)

and divide the result by the number of days and the number of cows milked during this period.

For “Average daily milksolids per cow for last 10 days in December (kg)” obtain the milk produced

in the last 10 days in December and divide this value by 10 and by the number of cows being

milked around this period. For the average SCC use the daily summary frequency (step 2)

L1 Training Guide - March, 2015

DairyBase

Private Bag 3221

Hamilton 3240

Tel: 07 858 3890

Fax: 07 858 3765

Email: [email protected]

http://www.dairynz.co.nz/farm/dairybase/

dairybase level 1 physical questionnaire training guide · · 2015-05-261.9 percentage of milk...

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