FARM FOCUS DAY Thursday, 17 March 2022 - Owl Farm

Page created by Sidney Mejia
 
CONTINUE READING
FARM FOCUS DAY Thursday, 17 March 2022 - Owl Farm
FARM FOCUS DAY
                                         Thursday, 17 March 2022

                                                       Season Update
                                            Farm performance season to date

                                         Criteria for investing in technology
  Brian Dela Rue (DairyNZ research engineer) - key considerations when choosing which technology is
                                             right for you.

                                        Why soil matters for climate change
Prof. Louis Schipper (Waikato Uni) - research happening at Owl Farm to measure changes in soil carbon

Disclaimer:

While every effort has been made to ensure information provided in this handout was true and correct and the time of going to
print, Owl Farm takes no responsibility for the use of data outside of the purpose to inform readers of the current situation at Owl
Farm on the Focus Day.
FARM FOCUS DAY Thursday, 17 March 2022 - Owl Farm
CONTENTS
Contents ......................................................................................................................................... 2
Owl Farm Strategy ...................................................................................................................... 3
Health and Safety ....................................................................................................................... 4
Owl Farm Multi-Year Snapshot ............................................................................................... 6
Wagon Wheel KPIs 2020/21 ..................................................................................................... 7
1.0 Farm Performance ................................................................................................................ 9
      Season to date comparison .............................................................................................................................................. 9
      Climate .................................................................................................................................................................................. 11
      Rainfall ................................................................................................................................................................................... 12
      pasture Growth Rates ....................................................................................................................................................... 15
      Pasture Cover....................................................................................................................................................................... 15
      Milk Production .................................................................................................................................................................. 16
      Milk Quality .......................................................................................................................................................................... 19
      MS/ha from Homegrown Feed ...................................................................................................................................... 20
      Feed Supply and Demand graph .................................................................................................................................. 21
      Paddock Performance ...................................................................................................................................................... 22
      Livestock Growth ................................................................................................................................................................ 23
      Reproductive Performance............................................................................................................................................. 24

2.0 Animal Wellbeing ............................................................................................................... 25
      Body Condition Score ....................................................................................................................................................... 25
      SCC (Somatic Cell Count) ................................................................................................................................................ 26
      Lameness .............................................................................................................................................................................. 27

3.0 Business Health .................................................................................................................. 28
      Cashflow against original budget ................................................................................................................................. 28
      Sustainable Agriculture Finance Initiative (SAFI) ..................................................................................................... 29
      Revised budget for 2021/22 season .............................................................................................................................. 31

4.0 Community ........................................................................................................................... 32
      Students studying Ag/Hort ............................................................................................................................................. 32
      Te Awa River Cycleway ..................................................................................................................................................... 33
      2022 Public Open Day ...................................................................................................................................................... 33

5.0 Quality Workplace ............................................................................................................. 34
6.0 Environment ........................................................................................................................ 42
      Why soil matters for climate change - The University of Waikato’s research on Owl Farm ....................... 45

2
FARM FOCUS DAY Thursday, 17 March 2022 - Owl Farm
OWL FARM STRATEGY
1. Vision
    a.   Dairy Farm
         • Demonstrating excellence in farm performance to create a sustainable future.
    b.   Students
         • To encourage more young people into the dairy industry.

2. Strategic Objectives
    a.   Dairy Farm
         • Providing leadership to dairy farmers and the wider community by demonstrating
            progressive practices that can be achieved on farm.
         • Optimising profit through identifying the appropriate dairy production system for Owl Farm.
         • Achieving a sustainable environmental footprint based on industry good management
            practice.
         • To attract, train and retain quality employees.
    b.   Students
         • To provide educational opportunities and exposure to the dairy industry which
            demonstrates career opportunities to students.

3
FARM FOCUS DAY Thursday, 17 March 2022 - Owl Farm
HEALTH AND SAFETY

Welcome to Owl Farm. We are a fully operational, commercial dairy farm with several potential
hazards to both visitors and staff. Many of these hazards cannot be eliminated while also providing
access to visitors, therefore all staff and visitors MUST watch for potential hazards and act with
caution.

St Peter’s School / Owl Farm Hazard Notifications
   •   Children are the responsibility of their parent or guardian
   •   Normal hazards associated with a dairy farm
   •   Other vehicular traffic on farm roads and races
   •   Races may be slippery

ARE YOU TRAINED FOR WHAT YOU ARE ABOUT TO DO? If not, STOP.

              Emergency Contact Information

In the event of an emergency, ensure the scene is safe and raise the alarm to get Owl Farm staff and
emergency services to assist.

Emergency Services
   •   Fire, Police and Ambulance                 111
       1716 Cambridge Road, follow Hanlin Road through the school to the farm

Farm Staff
   •   Jo Sheridan – Demonstration Manager               021 712 680
   •   Tom Buckley – Farm Manager                        021 058 4916

Safety Equipment Location
   •   First Aid Kits                             Dairy Shed and Vehicles
   •   Fire Extinguishers                         Dairy Shed and Tractor
   •   Defibrillator                              Main Office and St Peter’s Medical Centre

By entering Owl Farm and signing in at registration, you are acknowledging your understanding of
any potential hazards and agree to take personal responsibility and act in such a manner as to protect
yourselves and others also on-farm.

4|Page
FARM FOCUS DAY Thursday, 17 March 2022 - Owl Farm
5
FARM FOCUS DAY Thursday, 17 March 2022 - Owl Farm
OWL FARM MULTI-YEAR SNAPSHOT
                                                Year                           2017-18     2018-19    2019-20     2020-21
                      Total farm area                                            164         164         164        160
                      Effective area (ha)                                        148        147.3       147.5        144
    Physical Info

                      Effective area leased (ha)                                 18          18          22         33.3
                      Leased run off (ha)                                         5         3+12        5+5          4.7
                      Cows wintered                                              441        419         421         416
                      Peak cows (1 Nov)                                          418        406         405         405
                      Peak stocking rate cows/ha                                2.82        2.76        2.75        2.81
                      Total kg MS                                              168,169     169,359     167,185     178,125
                      MS/cow                                                    402          417         413         440
    Production

                      MS/ha                                                     1,136       1,150       1,133       1,237
                      MS/ha from homegrown feed                                 978         1,013        931        1,034
                      MS as % liveweight                                       86.5%       89.7%        86%         92%
                      Average SCC                                             146,000     172,000     162,000     144,000
                      Pasture growth rates total T DM/ha                         17.4       15.7        13.4        14.7
    Feed and Inputs

                      Homegrown feed harvested T DM/ha (actual weight)          13.8        13.7         11.4        11.7
                      Supplements imported T DM/ha                               2.3         2.3         2.7         2.6
                      Supplements imported T DM                                 339         337         440         368
                      Percentage of diet imported                               13%         13%         17%         16%
                      Percentage of farm cropped & harvested (silages)          33%         93%         45%         24%
                      Nitrogen fertiliser applied on pasture (kg/ha)            161kg      149kg       140kg       138kg
                      Gross farm revenue/kg MS (including stock/dividend)       $7.56      $6.86        $7.58       $7.94
                      Cash farmgate milk price/kg MS (Dairybase)                $6.39       $6.43       $7.11       $7.47
                      Stock sales/kg MS                                        $0.54        $0.43       $0.37      $0.52
    Financials

                      Dividend/kg MS                                           $0.36       $0.00       $0.00        $0.15
                      FWE/kg MS                                                 $4.28       $4.66       $4.96      $4.60
                      OPEX/kg MS (inc depn & feed inv)                          $4.59       $4.97       $5.46       $5.10
                      Op Profit/ha actual payouts (cash milk rev) Dairybase    $3,096      $2,147      $2,405      $3,482
                      Opening debt/kg MS held                                  $21.23      $23.02      $21.61      $20.86
                      Estimated N loss kg/ha                                     35          35          32          34
                      Estimated P loss kg/ha                                     0.8         0.9         0.8         1.0
    Enviro

                      GHG loss/ha Overseer FM kg CO2e/ha                        11,801     11,728      11,304      11,623
                      Biological GHG/ha (methane + nitrous oxide)               9,548       9,192      9,074        9,945
                      N conversion efficiency                                   24%         25%         25%         27%
                      Cowshed                                                  36 Rot      36 Rot      36 Rot      36 Rot
                      Feed infrastructure                                        NIL         NIL        NIL          NIL
                      Herd BW/PW                                               112/135     119/153     159/186     171/197
                      Industry BW/PW                                            72/93       64/73      93/117
                      Effluent storage                                                       New lined pond
                      Amount of farm effluent is applied to                   51 ha 34%   51 ha 34%   51 ha 34%   41 ha 28%

6
FARM FOCUS DAY Thursday, 17 March 2022 - Owl Farm
WAGON WHEEL KPIS 2020/21

7
FARM FOCUS DAY Thursday, 17 March 2022 - Owl Farm
8
FARM FOCUS DAY Thursday, 17 March 2022 - Owl Farm
1.0 FARM PERFORMANCE

SEASON TO DATE COMPARISON
With warm winter soil temperatures and dry soils coming into the season, the spring peak growth
and production was hampered by high rainfall in September and a subsequent growth surge in
November. Cows peaked lower than last season and, even with slightly more imported feed being
used during the wet weather and milk replacer being used for the first time this season, we
struggled to keep up with last year’s production.

Temperatures heated up in December followed by an exceptionally dry January causing soil
moisture levels to plummet along with pasture covers, like last season but a month earlier.
Predictions of heat stress times were from 11am to 8pm for days on end, causing reduced intakes
and lower milk production in December through January. Using our 11 ha of crops and 3n2 milking
since before Christmas helped to reduce the pressure, along with yard sprinklers. The Waitangi
weekend saw welcome rain which allowed us to slow the rotation right down to 70 days for 2-3
weeks to build cover before the regular autumn recovery rain was due. Holding the cows up on
kale crops, along with feeding PK and high amounts of low energy silage (up to 8 kg DM) to
minimise pasture intake, also had an impact on milk production.

Cows were transitioned to OAD on 22nd February when we could still feed them 18+ kg DM and we
prepared for the impacts of Covid on our workforce. In the last week of February we sold 70 cows
to further reduce feed demand while we were still able to get cows sold and to the works.

With lower stock numbers and continued dry weather predicted for March we have updated our
Farmax feed budget to revise our milksolids production target for the year, down to 166,640 kg
MS from 175,000 kg MS. This includes drying off approximately 70 cows on BCS criteria through
late March and miking 250 cows through to 10th May.

Summer crop yields have been slightly lower this year but, with high quality and good utilisation,
they have added an additional 4 kg DM to the diet from 22nd December through to the end of
March.

Notes:

9
FARM FOCUS DAY Thursday, 17 March 2022 - Owl Farm
Season to date 28/02/2022                                 2017-2018   2018-2019   2019-2020   2020-2021   2021-2022   Notes

                   Milking Platform                                            148         147         147         144         144         1

                   Cows on farm                                                412         361         374         385         321         2
 Stock

                   Peak cows                                                   418         406         405         405         410         3

                   Peak stocking rate                                          2.82        2.76        2.75        2.81        2.85        4

                   Total kgMS Season to date to factory                       144,909     152,670     151,268     150,443     144,826      5
 Production

                   MS/cow Season to date                                       347         376         374         371         353         6

                   MS/ha Season to date                                        976         1,036       1,026       1,045       1,008       7

                   MS/ha from homegrown feed to date                           868         941         914         912         868         8

                   Average Pasture Cover 1 June                                2,256       2,430       2,516       2,517       2,334       9

                       Pasture growth rates total TDM/ha                       14.0        13.3        10.9        11.8        11.9       10

                       Actual pasture grown to graze and harvest as silage
                                                                               12.8        12.3        10.2        10.5        10.8       11
                       excl area sprayed out in crop
                       Total pasture supply TDM/ha                             12.8        12.3        10.2        10.5        10.8       12

                       Yield of Crop grown per total farm /ha                   0.8         0.8         0.5         0.7         0.7       13

                       Winter homemade silage on hand fed                       0.2         0.8         0.6         0.2         0.2       14

                       Imported Supplements fed/ha                              1.6         1.2         1.4         1.5         1.7       15

                   Total Feed supply TDM/ha                                    15.3        15.1        12.7        12.9        13.3       16

                       Homegrown grass eaten TDM/Ha (grown this year)           9.2         8.4         7.9         8.2         8.1       17
 Feed and Inputs

                       Homegrown silage grown and eaten this year               0.0         0.3         0.5         0.0         0.0       18

                       Crop eaten per total farm/ha                             0.7         0.7         0.5         0.6         0.6       19

                     Homegrown feed EatenTDM/ha (grown this year)               9.8         9.5         8.9         8.8         8.6       20

                       Silage harvested TDM/ha Season to date                   1.1         1.6         1.0         0.8         0.6       21

                     Total Homegrown feed Harvested TDM/ha                     11.0        11.1         9.8         9.6         9.3       22

                       Winter homemade silage on hand eaten                     0.2         0.6         0.5         0.2         0.2       23

                       Imported Supplements Eaten TDM/ha                        1.2         1.0         1.1         1.3         1.4       24

                     Total Feed eaten this year (includes only silage fed)
                                                                               11.2        11.1        10.5        10.3        10.2       25
                     TDM/ha
                   % Feed eaten grown on farm                                  89%         91%         89%         87%         86%        26

                   Feed conversion Eff (kgDM eaten/kgMS)                       11.5        10.7        10.2         9.8        10.2       27

                   Nitrogen Applied/effective ha                               122          93         102          77          86        28

Notes:

10
CLIMATE
Climate data is recorded from one weather station on the farm, collecting rainfall, air temperature,
humidity and wind. We also have a 600mm soil probe that measures soil moisture and temperature
at 100mm depths. Graphs show readings at 100mm depth over time.

Graphic 1.1: Average temperature over years

                                                     Average temperature
     24.00

     22.00

     20.00

     18.00

     16.00

     14.00

     12.00

     10.00

      8.00
                Jun       Jul    Aug       Sep        Oct       Nov    Dec    Jan      Feb   Mar         Apr        May

                       17/18           18/19            19/20         20/21         21/22          6 year average

Graphic 1.2: Average soil temperature over years

                                                 Average soil temperature
      26.00

      24.00

      22.00

      20.00

      18.00

      16.00

      14.00

      12.00

      10.00

         8.00
                 Jun       Jul   Aug           Sep     Oct      Nov   Dec     Jan     Feb    Mar       Apr      May

                       17/18       18/19               19/20          20/21         21/22          6 year average

Notes:

11
Graphic 1.3: Average soil moisture over years

                              Average Soil Moisture 100mm
 40.00

 35.00

 30.00

 25.00

 20.00

 15.00
         Jun      Jul   Aug   Sep   Oct      Nov   Dec     Jan   Feb     Mar     Apr     May

               17/18      18/19      19/20         20/21         21/22         6 yr average

RAINFALL

The 2021/22 season is shaping up to be a hotter and drier season than most.

While it felt like a wetter spring compared with the last two seasons, we are still receiving average
rainfall, but low soil moisture levels at the start of the season meant that we went into summer
dry once again. This gave us insights into our risk management strategies in case of another
prolonged dry spell. We used long rotations, forward-contracting supplements and booking in
early pregnancy diagnosis and culls to leave the farm to manage the reduced pasture growth
rates resulting from low soil moisture.

Notes:

12
Graphic 1.4: Cumulative monthly rainfall over seasons

                                            Rainfall - Farming year
 1400                                                                                                                         1269

 1200
                                                                                                                              1080
                                                                                                                               991
 1000

                                                                                                                              837
                                                                                                                              808
     800
                                                                                                                              753

     600

     400

     200

         0
             Jun   Jul      Aug    Sep       Oct           Nov    Dec     Jan       Feb         Mar         Apr         May

                    17/18         18/19            19/20          20/21           21/22           5 yr average

Graphic 1.5: Cumulative monthly rainfall over years

                                            Rainfall - Calendar year
1400                                                                                                                                1388

                                                                                                                                    1317
1200

1000                                                                                                                                1062

 800
                                                                                                                                    766
                                                                                                                                    711
 600

 400

 200

     0
             Jan   Feb      Mar     Apr       May           Jun     Jul     Aug           Sep         Oct         Nov         Dec
                         2017        2018            2019          2020           2021           5 yr average

13
Graphic 1.6: Monthly rainfall over years

                                       Rainfall by month
 200
 180
 160
 140
 120
 100
     80
     60
     40
     20
      0
          Jun   Jul     Aug     Sep   Oct           Nov   Dec     Jan      Feb   Mar     Apr       May

                17/18         18-19         19/20         20/21         21/22     6 year average

Notes:

14
PASTURE GROWTH RATES
A noticeable growth check in October put pressure on early mating and silage harvesting and
crop planting. Low growth rates in January have been balanced by higher February growth;
however, destocking the farm early was necessary to reduce grazing pressure and ensure
remaining cows were allocated enough feed to maintain body condition and appropriate FEI
levels in milk.

Graphic 1.7: Pasture Growth Rates from Farmax

                                                                     Growth Rates
                                            90
     Growth Rate kgDM/ha/day

                                            80
                                            70
                                            60
                                            50
                                            40
                                            30
                                            20
                                            10
                                             0
                                                   Jun   Jul   Aug     Sep   Oct   Nov   Dec   Jan   Feb   Mar   Apr   May
                               2017-18             23    28    50      59    73    76    49    49    55    40    33    39
                               2018-19             23    20    42      59    71    73    74    52    21    23    30    28
                               2019-20             38    30    43      52    65    77    43     7     1    12    31    38
                               2020-21             41    34    43      49    55    59    56    39    12    19    42    33
                               2021-22             32    26    36      52    52    79    59    22    34
                               Long term average   25    26    40      56    68    72    58    38    27    32    35    34

PASTURE COVER
Covers have been maintained nicely between 2100 and 2400 kg DM/ha since Balance Date, due
to timely management of surplus through crops, silage or baleage. They bottomed out at 1800 kg
DM/ha in early February prior to the rain and have since recovered to 2200 kg DM/ha, due to the
long rotation being used in February. This should allow us to continue allocating 8-9 kg DM
grass/cow/day until the autumn rains come.

Notes:

15
Graphic 1.8: Pasture Cover from weekly farm walk

MILK PRODUCTION
Milk production exceeded target in September and October but was below target during July and
August due to the slower calving rate. Milk production continued to fall below target as
production per cow was lower from November onwards.

Graphic 1.9: Monthly milk production

                                           Production: Monthly Performance
            30,000

            25,000

            20,000

            15,000

            10,000

                5,000

                   0
                         Jul        Aug       Sep       Oct      Nov      Dec       Jan      Feb      Mar       Apr     May
     17/18 Production   6,807     21,183    23,287    24,376    21,030   19,213   16,158    12,856   14,641     7,549   1,070
     18/19 Production   6,216     21,391    24,460    24,906    22,042   19,744   18,745    15,165   11,509     5,181
     19/20 Production   7,184     22,507    24,485    23,924    21,544   19,879   17,675    14,070    8,179     4,564   3,173
     20/21 Production   5,052     20,543    25,146    25,222    20,716   19,866   18,488    15,411   14,234     9,178   4,270
     21/22 Production   5,945     19,307    25,906    25,576    21,137   18,472   16,263    12,220
     Budgeted           7,000     22,000    24,000    24,000    22,000   20,000   18,000    15,000   12,000     8,000   3,000

         17/18 Production       18/19 Production     19/20 Production    20/21 Production    21/22 Production    Budgeted

16
We saw a strong per cow peak in September but cows dropped off peak in October as
temperatures started to increase in November. Once the heat rose in December, milk production
continued to decline even with allocated feeding levels around 19 kg DM/cow/day being offered.

Graphic 1.10: Production per cow

                                           Production per cow: monthly average
                    2.20

                    2.00

                    1.80
     kgMS/cow/day

                    1.60

                    1.40

                    1.20

                    1.00

                    0.80

                    0.60
                           Jul   Aug       Sep        Oct   Nov       Dec       Jan   Feb        Mar      Apr      May

                                 2017-18         2018-19    2019-20         2020-21    2021-22         Budgeted kgMS

Our target of 850 kg MS/ha by 31st December or 122,000 kg MS relies on early, condensed calving
to create more milk in July and August. By 31st December 2021 we had achieved 809 kg MS/ha.
Our target was achieved by 11th January.

Notes:

17
Graphic 1.11: Production per hectare

                                                       Production per ha: cumulative
                   1400.00

                   1200.00

                   1000.00

                                                                   Dec, 850.00

                    800.00
     kgMS/ha/day

                    600.00

                    400.00

                    200.00

                      0.00
                               Jul     Aug      Sep       Oct       Nov          Dec           Jan   Feb     Mar      Apr      May
                             2017-18         2018-19            2019-20                20-21         21-22         Budgeted kgMS

Notes:

18
MILK QUALITY
Our target this season is to provide the highest quality milk for Fonterra by achieving Te Tihi status
in the Co-operative Difference framework. This represents Excellence in milk quality for 90% of
our milk supply days.

To unlock the 7c/kg MS we have worked on the following:

Co-operative and Prosperity
   • We will have full and accurate farm dairy records by 30th June 2022
Environment
   • A Farm Environment Plan meeting all four key practices
   • Purchased N surplus will be less than 137 kg N/ha (was 110 kg N/ha in 2020-21)
   • We participate in a product stewardship scheme for plastics
   • No discharge of farm dairy effluent to water
   • 80% of our feed used for the season will be farm grown
Animals
   • An Animal Wellbeing Plan that addresses nutrition, health, environment, and behavioural
     issues
People and Community
   • The 360 Workplace Assessment achieving 100% on the foundation section

Graphic 1.12: The Co-operative Difference summary at 07/03/2022

19
MS/HA FROM HOMEGROWN FEED
We maintain a focus on homegrown feed that enables us to meet Co-operative Difference criteria
and manage risks associated with imported feed supply and pricing. With lower production
season to date and more supplements required to achieve it, we have lower milksolids from
homegrown feed season to date.

Graphic 1.13: Production per hectare to date between seasons

                                 1,200
                                           Production/ha to date

                                 1,000

                                  800
                       kgMS/ha

                                  600

                                  400

                                  200

                                    0
                                         2017-2018   2018-2019   2019-2020   2020-2021   2021-2022
     MS/ha Season to date                  976         1,036       1,026       1,045       1,008
     MS/ha from homegrown feed to date     868         941         914         912         868

Notes:

20
FEED SUPPLY AND DEMAND GRAPH
Homegrown grass eaten year to date is slightly below last year which reflects the lower August,
September, October and January growth rates. More imported supplements have been used to
date to ensure adequate feed intakes during periods of poor pasture utilisation in a wet spring.
Included is low utilisation of low ME grass silage at high feeding levels during a dry summer.

Graphic 1.14: Total feed used season to date between seasons

                            12.0 TDM/ha
                                                                      Total feed used TDM/ha by type
                            10.0 TDM/ha

                             8.0 TDM/ha

                             6.0 TDM/ha

                             4.0 TDM/ha

                             2.0 TDM/ha

                             0.0 TDM/ha
                                                 2017-2018   2018-2019    2019-2020   2020-2021   2021-2022
     Imported Supplements Eaten TDM/ha              1.2         1.0          1.1         1.3         1.4
     Crop eaten per total farm/ha                   0.7         0.7          0.5         0.6         0.6
     Homegrown silage grown and eaten this
                                                    0.0         0.3          0.5         0.0         0.0
                     year
     Winter homemade silage on hand eaten           0.2         0.6          0.5         0.2         0.2
     Homegrown grass eaten TDM/Ha (grown
                                                    9.2         8.4          7.9         8.2         8.1
                  this year)
     Total Feed eaten this year (includes only
                                                   11.2        11.1         10.5        10.3        10.2
               silage fed) TDM/ha
     % Feed eaten grown on farm                    89%         91%          89%         87%         86%

Notes:

21
PADDOCK PERFORMANCE
Weekly farm walk data is used to calculate paddock growth rates for the season to date. The paddocks on the right include annual and crop
yields and are the highest-performing, following Cleancrop brassica systems. We use this data plus last year’s annual yield, clover and plantain
composition, and pasture condition scores, to make informed decisions on which paddocks are suitable for cropping, weed management
requirements, and which need fertiliser or potential drainage.

Graphic 1.15: Paddock performance season to date from farm walk data

22
LIVESTOCK GROWTH
2020-born calves left the farm on 1st June to commence grazing at Waikato Heifer Growers at 247
kg; they weighed 327 kg on average at Planned Start of Mating and were 410kg on 14th January.

Graphic 1.20: 2020-born calves

2021-born calves were reared on milk replacer this season, averaged 180 kg on 18th January and
are now grazing 7.1 ha of chicory on leased support land with additional grass silage and PK.

Graphic 1.21: 2021-born calves

23
REPRODUCTIVE PERFORMANCE

24
2.0 ANIMAL WELLBEING

For the 2021/22 season we have improved our Healthy Calves KPI, with 83% of calves testing with
adequate IgG (immunoglobulin) levels for optimum calf health. Purposeful Lives for Calves
increased to 70% in 2021. Our final empty rate is one of the biggest contributors to involuntary
culls; this year it is 9%, down from 14% last season.

BODY CONDITION SCORE
Last year we were challenged with having high BCS cows that mobilised a lot of weight to
continue producing during mating. We worked hard to get a better BCS result and prevent over-
fat cows at calving. While heifers calved at target 5.5 BCS, the cows were slightly under BCS target
(4.9) and the second-calvers at 4.9 did not hit their 5.5 BCS target.
However, body condition score loss has been limited to 0.5 BCS so far this season and cows have
been in excellent metabolic health. While BCS continues to track lower this season, at an average
of 4.3 in February and March we have cows that can continue to milk through to early May.

Graphic 2.1: Monthly Body Condition Score

                                                  Monthly Body Condition Score
                        6.0

                        5.5
     AVERAGE HERD BCS

                        5.0

                        4.5

                        4.0

                        3.5
                              Jun   Jul   Aug     Sep     Oct   Nov       Dec   Jan     Feb     Mar   Apr   May

                                          17/18         18/19     19/20         20/21         21/22

25
SCC (SOMATIC CELL COUNT)
Last season we culled high SCC cows to prepare us for 90% of milk at < 150,000 SCC threshold to
achieve Te Tihi Co-operative Difference. This had a huge impact on our SCC in early lactation.
However, even with few cases of mastitis (9% season to date), lower production and reduced
milking frequency has made it hard to consistently maintain SCC below 150,000 to reach
Excellence standard.

Graphic 2.2: Monthly SCC over years

Graphic 2.3: Mastitis Cases Treated

                                                  Mastitis - cases treated
                       90
                       80
                       70
                       60
       MASTITIS CASE

                       50
                       40
                       30
                       20
                       10
                        0
                            Jun   Jul      Aug   Sep       Oct   Nov   Dec   Jan       Feb   Mar      Apr   May

                                        17/18          18/19       19/20       20/21          21/22

26
LAMENESS
Lameness cases started off low for the season, but wet conditions in September increased
lameness through October to December and, while new cases have slowed dramatically through
January and February, we have already exceeded our lameness goal of less than 12% for the season.

Graphic 2.4: Lameness events between years

                                                         Lameness events
                       160

                       140

                       120
     NUMBER OF CASES

                       100

                        80

                        60

                        40

                        20

                         0
                             Jun   Jul   Aug     Sep      Oct   Nov       Dec   Jan     Feb     Mar   Apr   May

                                         17/18         18/19      19/20         20/21         21/22

Notes:

27
3.0 BUSINESS HEALTH

CASHFLOW AGAINST ORIGINAL BUDGET
With increasing uncertainty about product supply and cost throughout the 2021/22 season (since
the budget was approved in March 2021) we have been focused on securing essential pasture
growth and animal wellbeing inputs at the lowest possible cost relative to budget. Milk replacer
for calves has been the only approved out-of-budget expenditure for this season.
The milk production target has been revised down to 166,640 kg MS for the 2022/23 season, based
on Farmax feed budgets, taking into account milk production season to date and feed remaining
within budget, while achieving our BCS, APC and feed reserves for next season.
Breeding costs are expected to be lower due to the Halter subscription starting one month later
than budgeted (Note 9).
Silage made costs are expected to be lower, due to budgeting on 55 ha made and we have only
made 42 ha (Note 12).
Capital expenses to date include Halter setup ($22.7k), with bale grabs and bale feeder, concrete
tanker pad and water reticulation included in the approved $60k capital spend for the season
(Note 33).
We have tried to reduce the effect of increasing input prices on PK and N fertiliser, two significant
expense areas. The 2021/22 budget was set at $800/t SustaiN to deliver 120 Units N/ha. With
prices increasing significantly over the year, in December we purchased 12 t of SustaiN and 6 t of
DAP (at $1345/t) for our autumn fertiliser requirements, to store on farm before further significant
price increases. We have averaged $1027.25/t SustaiN for the season so far.

Graphic 3.1: SustaiN purchase price

         Date            Volume             Price/t product

      31/8/21          4.5 t SustaiN        $949

      30/9/21          2.5 t SustaiN        $949

      5/10/21           2 t SustaiN         $949

     31/11/21          1.3 t SustaiN        $999

      1/12/21          10 t SustaiN         $1,049

     14/12/21           2 t SustaiN         $1,289

                 22.3 t purchased to date   $1027.25/t average price

                                            (Current price as at 13/3/22 is $1239/t)

28
The 2021/22 budget for PK was set at 160 t purchased at $317/t (plus 13 t PK for calves). We have
averaged $342/t PK for the season.

Graphic 3.2: PK purchase price

          Date                Volume                         Price                 Contract/Spot

         1/7/21                107 t                         $324/t                Contract 1 July for 8 months

        1/11/21                 30 t                         $380/t                Contract 1 November for 3 months

         1/3/22                28.7 t                      $352.95/t               Spot price

         1/4/21                 15 t                         $379/t                Contract 1 April for 6 months

                       180 t (includes 13-15t   $342/t average price (spot price
                           PK for calves)          as at 13/3/21 is $464/t)

       1/4/21 (for              30 t                         $379                  Contract 1 April for 6 months to be
     2022/23 season)                                                               used in June/July

SUSTAINABLE AGRICULTURE FINANCE INITIATIVE (SAFI)
Owl Farm is pleased to partner with Westpac in their Sustainable Agriculture Finance Initiative
which acknowledges the reduced risk of lending due to our sustainable farm practices.
Committing to the SAFI framework is extremely well aligned with our wagon wheel KPIs and
allows us to receive a lower interest rate as we work through meeting the criteria over the next
two years. We look forward to presenting this in more detail with Westpac at our May Focus Day

Notes:

29
Graphic 3.3: 2021/22 cashflow updated to end of January

                                                     Jun         Jul         Aug         Sep         Oct          Nov         Dec         Jan         YTD Total YTD Budget      Variance       Full Year Budget   Notes

Milksolids KG                                                -      5,945     19,307      25,906      25,576      21,137      18,472      16,263        132,606     137,000         4,394              175,000     1
Total Milk Receipts                                  (63,005)     (98,223)   (156,187)   (192,073)   (171,096)   (131,665)   (103,131)   (196,870)    (1,112,250)   (916,205)     196,045           (1,259,743)    2
Dividends Received                                           -           -     (7,450)           -    (27,925)           -          -      (5,954)      (41,329)      (7,700)      33,629               (7,700)    3
All Cattle Sales                                      (3,215)      (1,775)    (15,691)    (18,713)     (4,422)     (1,026)     (1,000)    (13,418)      (59,260)     (23,900)      35,360              (79,900)    4
All other Income                                      (3,433)     (13,310)     (3,433)           -     (3,433)     (3,433)     (3,433)     (3,433)      (33,910)     (31,200)       2,710              (46,800)    5
Total Income                                         (69,653)    (113,308)   (182,761)   (210,786)   (206,876)   (136,125)   (107,564)   (219,676)    (1,246,749)   (979,005)     267,744           (1,394,143)    6
Wages                                                16,015       17,757      24,899      16,512      16,512      16,642      19,514      22,867        150,718     158,280         7,562              241,420     7
Animal Health                                         9,217         3,530       3,755       3,692          480      7,323       3,091       1,537        32,627      24,800        (7,827)              42,000     8
Breeding & Herd Improvement                                719         785      1,795     21,323      13,477        5,014       2,595       5,819        51,527      48,040        (3,487)              65,260     9
Farm dairy                                            1,869            355         77          110         481      1,271           -           106       4,269        3,860         (409)               4,940     10
Electricity                                                  -         869      1,422       1,487       1,690       1,678       1,358       1,497        10,001        9,100         (901)              12,900     11
Silage made                                                  -           -          -            -      5,118       8,702        300        3,870        17,989      32,820        14,831               32,820     12
Supplements purchased                                 9,357         3,055       6,731       9,856     17,388             -    10,041              -      56,428      75,600        19,172               97,008     13
Calf rearing                                          2,015         1,515     16,937           211      5,809       1,553           9             -      28,049      13,000       (15,049)              13,000     14
Young & dry stock grazing                             9,041         7,256       5,600       5,060       5,060            -      8,418       5,060        45,494      47,520         2,026               69,480     15
Fertiliser (incl. N)                                  (2,164)       3,124     17,594        2,586          853    20,989      21,138              -      64,119      44,500       (19,619)              66,500     16
Regrassing & cropping                                 1,398         1,313           -     10,471        9,068       7,349       1,198       2,476        33,273      28,600        (4,673)              46,600     17
Weed and pest                                                -          36       491        1,636            -       150        4,532             -       6,845        2,500       (4,345)               2,500     18

Planting                                                     -           -      8,705            -           -           -          -             -       8,705      15,000         6,295               15,000
                                                                                                                                                                                                                   19
Effluent spreading                                           -           -       180           421    12,237        2,380           -           603      15,822        8,000       (7,822)              15,000     20
Vehicles - Fuel and R&M                               3,537         1,447       2,017       2,606       1,499       5,337       2,884       1,783        21,110      20,920          (190)              31,380     21

R&M (land,buildings, plant, machinery)                2,549         3,475        616      14,556        1,477       1,445       1,160           412      25,691      37,764        12,073               56,196
                                                                                                                                                                                                                   22
Freight and general farm expenses                     2,840         6,247       4,100       6,702       5,019       5,269       4,095       4,072        38,345      34,340        (4,005)              50,060     23
Administration                                        1,251         1,250       1,838       1,253       1,250       1,250       1,280       1,253        10,625      12,330         1,705               17,920     24
Rates, Insurance, ACC                                 1,000         1,000       2,048       2,044       2,048       2,048       2,097       1,048        13,334      16,000         2,666               32,500     25
CASH Farm Working Expenses                           58,646       53,013      98,805     100,526      99,466      88,402      83,710      52,403        634,970     632,974        (1,996)             912,484     26
Surplus before Finance charges                       (11,007)     (60,295)    (83,956)   (110,260)   (107,409)    (47,723)    (23,855)   (167,273)     (611,778)    (346,031)     265,747             (481,659)    27
Lease Land on Milking Platform                        4,485         4,485       4,485       4,485       4,485       9,545       4,485       4,485        40,938      41,008           70                61,512     28
Interest - Farm Loan                                 10,172       10,172      10,172      10,172      10,172      10,172      10,172      10,172         81,376      81,376                -           122,064     29
Depreciation                                          7,243         7,243       7,243       7,243       7,243       7,243       7,243       7,243        57,940      61,160         3,220               91,740     30
Total Financial Charges                              21,899       21,899      21,899      21,899      21,899      26,959      21,899      21,899        180,254     183,544         3,290              275,316     31
Principal                                            15,000       15,000      15,000      15,000      15,000      15,000      15,000      15,000        120,000     120,000                -           180,000     32
Capital Expenditure                                          -           -          -            -           -          93          -     22,720         22,813            -      (22,813)                    -    33
Surplus After Finance charges, Principal and CAPEX   25,892       (23,396)    (47,057)    (73,361)    (70,510)     (5,671)    13,045     (107,653)     (288,711)     (42,487)     246,224              (26,343)    34

30
REVISED BUDGET FOR 2021/22 SEASON

Graphic 3.4: Revised budget for 2021/22 season – updated production target of 166,640 kg MS

                                                                        Revised 9/3/22
                                                     Full Year Budget Full Year Budget    Notes

Milksolids KG                                                175,000           166,640     1
Total Milk Receipts                                       (1,259,743)       (1,548,066)    2
Dividends Received                                            (7,700)          (27,674)    3
All Cattle Sales                                             (79,900)          (97,900)    4
All other Income                                             (46,800)          (46,800)    5
Total Income                                              (1,394,143)       (1,720,440)    6
Wages                                                        241,420           241,420     7
Animal Health                                                 42,000            42,000     8
Breeding & Herd Improvement                                   65,260            61,260     9
Farm dairy                                                     4,940             4,940     10
Electricity                                                   12,900            12,900     11
Silage made                                                   32,820            15,000     12
Supplements purchased                                         97,008           104,008     13
Calf rearing                                                  13,000            27,000     14
Young & dry stock grazing                                     69,480            69,480     15
Fertiliser (incl. N)                                          66,500            76,000     16
Regrassing & cropping                                         46,600            46,600     17
Weed and pest                                                  2,500             2,500     18

Planting                                                      15,000            15,000
                                                                                           19
Effluent spreading                                            15,000            15,000     20
Vehicles - Fuel and R&M                                       31,380            31,380     21

R&M (land,buildings, plant, machinery)                        56,196            56,196
                                                                                           22
Freight and general farm expenses                             50,060            50,060     23
Administration                                                17,920            17,920     24
Rates, Insurance, ACC                                         32,500            32,500     25
CASH Farm Working Expenses                                   912,484           921,164     26
Surplus before Finance charges                              (481,659)         (799,276)    27
Lease Land on Milking Platform                                61,512            61,512     28
Interest - Farm Loan                                         122,064           122,064     29
Depreciation                                                  91,740            91,740     30
Total Financial Charges                                      275,316           275,316     31
Principal                                                    180,000           180,000     32
Capital Expenditure                                                -            60,000     33

Surplus After Finance charges, Principal and CAPEX           (26,343)         (283,960)    34

31
4.0 COMMUNITY

STUDENTS STUDYING AG/HORT
Owl Farm aims to provide educational opportunities and exposure to dairy farming which
demonstrates career opportunities to students. We offer classroom experiences on farm to all
students at St Peter’s as well as Waikato/BOP secondary schools through the Sustainability in Dairy
workshop run by Lincoln University for Year 11 students in May every year. This year we are also
offering a teacher-only day aligned with these workshops. We are a (DairyNZ) Rosie’s World
partner farm, providing an opportunity for primary schools across the district to bring Year 0-8
students onto a working dairy farm (unfortunately due to Covid interruptions we have had no
external primary school visits this year). It’s pleasing to see the continued increase in student
numbers choosing Ag/Hort subjects at many secondary schools.

Graphic 4.1: Increasing numbers of students studying Ag/Hort at St Peter’s

                    Students studying Ag & Hort at St Peter's
 350

 300

 250

 200

 150

 100

     50

      0
          2015    2016      2017     2018      2019      2020     2021      2022

32
TE AWA RIVER CYCLEWAY
The new section of the Te Awa River Cycleway opened on Saturday 6th March, with over 1400
users. Construction of the cycleway along approximately 4.5km of the Owl Farm boundary has
seen 12 months of contributions from Tom to manage grazing and new fence lines, as well as safe
contractor access to the cycleway. We have taken the opportunity to connect with the public by
providing an information board about the purpose of Owl Farm, on the cycleway.

Graphic 4.2: Owl Farm information boards to inform the public about NZ dairy farming

2022 PUBLIC OPEN DAY
Due to the current Covid event restrictions, we have regretfully decided to postpone our Public
Open Day until November 2022. As this annual event attracts between 300-600 people, we felt
it was better to postpone it to later in the season when we can deal with a large group of visitors,
and make the most of our many volunteers’ time to create such a special day.

33
5.0 QUALITY WORKPLACE

A farm accident before Christmas has meant that the team has been operating with remote
guidance from Tom while in recovery, on leave and for Covid isolation requirements.
We were able to secure the services of a relief contractor to cover during January and February to
enable the team to have time off farm.
Hours worked per week peaked mid December and are currently at 48 hrs/person/week average
for the season to date. We continue to work towards our 45 hrs/person/week target by shortening
the working day and ensuring more leave off farm is taken by the team during late summer and
autumn.

Graphic 5.1: Total hours worked on farm for the season

                                       Total hours worked on farm for the season
 250

 200

 150

 100

     50

      0
          Jun                     Sep                        Dec                   Feb                  May

                Total hrs/wk 2021-22         Total hrs/wk 2020-21   Total hrs/wk 2019-20   Total hrs/wk 2018-19

34
Graphic 5.2: Hours spent on tasks during calving and mating (measured in 2019)

                             Combined hours spent on tasks per month 2019
                                              July-August     October

                   AB
       Springer Check
               Minda
     Focus day Tidy up
      Fencing Repairs
             Calves in
      Tractor Spraying
             Feed out
      Demo Activities
       Weed Spraying
          Water Leaks
          Fert Spread
              Mowing
         Break Fences
              Effluent
           Lame Cows
           Farm Walk
       Data collection
       Washing down
          Break times
          Feed calves
              Drafting
              Cows in
              Milking
                Other

                         0   20    40    60     80          100    120   140   160   180   200

At Owl Farm we continue to explore options on how technology can enable quality workplaces
for our team and enhance animal wellbeing outcomes, while contributing to farm profitability.
Any change in circumstances triggers a review of our systems and resources to ensure we are on
the most efficient track to achieve our end goal.

35
Our 2021/22 budget included the deployment of Halter to Owl Farm after mating. Shown below
is the timeline of events over the last two years to get to this point.

Graphic 5.3: Introducing new technology

 Jul/Aug and Oct 2019      Analysis of workplace time and task studies
 March 2020                Received resignation from staff member
                           With increasing urbanisation on our boundary we started planning
                           for future reduced land area which indicated we would require less
                           than the current 2.8 FTE to run the farm
                           Explored options where technology can help improve hours worked
                           or workplace flexibility. Limitations include milking, bringing cows to
                           shed, drafting and putting up break fences in spring and in crops
                           during summer.
 April 2020                Worked with DairyNZ to create criteria for technology adoption at
                           Owl Farm:
                               1. Add value to compliance management via proof of practice
                                  data
                               2. Integration with other automation and data
                               3. Create safer and more attractive workplaces
                               4. Demonstrate leadership in how to use data to make better
                                  decisions
                               5. Complementary to wagon wheel KPIs
 April 2020                Explored options available using the 4D4F Technology Warehouse to
                           understand functionality available globally (137 products associated
                           with animal health and feeding)
 June 2020                 Investigated wearables market in NZ – talked to supplies, users etc
 June 2020                 Purchased and installed Protrack auto-draft
 July 2020                 Implemented options like batt-latch to bring cows to the shed
 October 2020              Put together business proposal for Halter to Farm Management
                           Committee
 February 2021             Farm Management Committee visited a Halter farm
 September 2021            Set up criteria including animal ethics
 November 2021             Waited for product functionality in Gen B collar
 December 2021             Farm mapped and towers installed
 11th January 2022         Cows collared and training begins

Analysis of technology explored the impact on all areas of the wagon wheel including cost saving
and extra income generated, along with the expense of the technology. Included overleaf are a
few examples of the discussion document generated in October 2020 while the product was still
developing. We explored current functionality and future plans for the product, knowing that
remote software updates allow the product to increase functionality while we are using it. We
anticipate an insignificant change in profit after the first year and gains to be made in years 2 and
3 of our three-year contract.

36
Graphic 5.4: Farm performance wagon wheel analysis for Halter technology

Graphic 5.5: Quality Workplace wagon wheel analysis for Halter technology

37
Graphic 5.6: Farm budget analysis for Halter technology

38
Technology in the NZ Dairy Sector                                   Brian Dela Rue, DairyNZ

Setting the scene
Dairy farmers are rising to the challenge of evolving environmental, animal wellbeing and
consumer requirements to maintain market access and community support, while remaining
profitable. Farms are heavily reliant on people to operate them, people with skill, who are
hardworking and resilient. But there has been minimal improvement in labour productivity (e.g.,
cows/FTE or kg MS/hours worked) over the past decade and, as herds have grown, more people
have been required. Pressures are evident of a critical shortage of farm workers, estimated at over
4000 people and projected to get worse, increasing the workload on current staff and impacting
wellbeing.

To improve labour productivity, make profitable decisions and attract and retain the right people
to deliver this, we need to change the way we work. Technology will be one of the key solutions,
but the focus needs to be wider, including:
    • Continued improvement – identify workplace opportunities with the farm team
    • Less reliance on people – eliminate, reduce, or automate tasks
    • Reducing hours worked – better rosters, fewer unsociable hours
    • Use of data in decision making – sensors for animal or pasture monitoring, for example
    • Improving workplace safety – less time off injured e.g., reduce strains and sprains in spring
    • A positive workplace culture - communication, opportunity, flexibility, choice,
       appreciation

What technologies are farmers adopting?
Our 2018 technology use survey
shows that farmers are investing
mostly in automation
technologies that reduce tasks
and make the job easier,
particularly at the dairy.

There is more technology in
rotary dairies, but they are also
newer and milk larger herds
than herringbone dairies. Technologies that support the ‘one-person shed’ improve labour
productivity (cows milked/person per /hour) and have been a main driver of uptake, evident in
rotaries where a combination of
devices can remove the need for
cups-off person.

There has been less investment in
data capture technologies that
support decision making. This
can be due to issues like a lack of
confidence in the performance of

39
technology, a perceived lack of value or difficulty integrating the data into decisions. The use of
sensors across the farm can be limited by internet connectivity.

Around 50% of farmers were still assessing their pastures visually, and only around 40% were
recording data in software where it could be used for performance analysis and benchmarking.

What have we been observing recently?

Animal monitoring
Since our 2018 survey there appears to have been an upsurge in the use of animal wearables,
mostly activity-based heat detection collars/tags as farmers gain confidence in these systems.
Many systems are now being offered on a subscription model rather than purchase. Most measure
additional indicators of an animal’s status such as eating time or rumination time, or lying
behaviour that can indicate health issues. The devices need to perform their primary task well, e.g.
heat detection, and other indicators add to the value of the device.

Smart phones and apps
Apps on smart phones are being used widely for business and operational recording and team
communication. These low-cost platforms enable innovation and quick adoption. Too many
separate apps may become frustrating.

Virtual fencing
There has been strong farmer interest in virtual fencing collars such as Halter and Gallagher’s
eShepherd. These technologies promise to automate time-consuming daily tasks and offer
opportunities for animal health monitoring and heat detection. Farmer experience to date is
positive but it is too early to assess benefits, limitations and return on investment.

Workplace improvements
Farmers have been trialling options to improve efficiency and job satisfaction for farm teams. Our
Workplace Design project has piloted some options that support improvements that farmers had
identified.
   • Work choice app for flexible rosters – option for farm teams choose shifts within their roster
   • Emerging leaders online training in emotional intelligence and leadership – bite-sized on-
       farm learning
           o see our Thought leaders and futurists webinar series
   • Task planning and choice using a Kanban board www.dairynz.co.nz/kanban
   • App for simple step-by-step visual instructions for key farm tasks (www.dairynz.co.nz/skills)

     For more information, search Workplace design on our DairyNZ web site

40
What to consider when evaluating a technology?

What are your current goals?

     •   Map out each part of your business and where you want improvement
            o e.g. productivity/profit, managing compliance requirements, reducing reliance on
               people, supporting new workers, or creating a workplace that attracts the best
               available people
     •   Keep up to date with ‘what good looks like’ in each area as farming is constantly evolving.

What is the issue or opportunity you are addressing and what does a successful outcome look
like?
    • For example, reducing the team workload during spring, or a system to ensure consistent
      heat detection performance without reliance on key people
    • Success may be maintaining the current good performance without farm team fatigue or
      burn-out

What is your current performance in this area?
  • Having sound numbers on hours required on the task and/or performance data will help in
      evaluating the value of a new technology and how long until the break-even point is
      reached.

What are the technology options and alternatives?
  • Keep up to date with technology options through farming contacts, social media chats,
     discussion groups, field days and technology provider information
  • Be open-minded about different ways to achieve a similar result
         o e.g., installing technology to automate a daily task OR reducing the number of
            milkings (flexible milking options like ‘3 in 2’, ‘7 in 10’, or OAD) leaving more time for
            those tasks.

Will this technology meet your goals?
   • Seek independent information (where available) on the technical performance.
   • Speak with farmers who have experience using the technology and discuss their results
       and experiences.
   • Consider ease of use and the skills required to operate the technology successfully
   • Assess the impact this technology will have across your business (e.g., profit, sustainability,
       cows, people)
   • Does it integrate with other technology on farm?
   • What is a realistic return on investment and when will you break even?

Who will be the technology champion on your farm?
  • It’s important that someone takes responsibility for ensuring every effort is made to get the
     best performance out of the technology, adaptions to farm practices are made as required
     and the team is supported in operating the system.

41
6.0 ENVIRONMENT

Our focus is to know and understand where our GHG emissions are coming from on farm. All
farmers need to know this by December 2022. By January 2025, all farmers will need to include
GHG management in their Farm Environment Plan (we are in the process of doing this now) and
be participating in a GHG reporting system.

Total GHG emissions is still being driven by production each season. Last season proved a
challenging year to balance profit goals with our environmental footprint. Both our biological
GHG and modelled N loss increased due to exceeding our production target. However, we were
able to do the same production as in 2016/17, but with a lighter environmental footprint (7%) while
generating more profit (27%).

Graphic 6.1: Biological GHG/ha over time

                                           Biological GHG
                     11000

                     10500

                     10000
     kg CO2E/ha/yr

                      9500

                      9000

                      8500

                      8000
                             2015   2016   2017     2018    2019     2020       2021

42
Changes over the last seven years to lighten our environmental footprint include:

     •   Use Ballance SustaiN and Smartfert
     •   Reduce nitrogen application rates to below 30 kg N/ha per application
     •   Reduce total nitrogen used in conjunction with My Pasture Planner
     •   Reduce nitrogen application during May–July
     •   Use soil moisture probe and soil temperature data to ensure nitrogen is applied when soil
         temperatures are above 10°C and soil moisture levels are above stress point
     •   Reduced stocking rate with reduced urine patches
     •   Reduction in imported supplements
     •   Breed high BW cows: currently top 6% nationally
     •   Reduce replacement rate using sexed semen and focusing on meeting youngstock
         growth targets
     •   New pastures planted with Agricom Ecotain Plantain (4 kg/ha)
     •   Retire and plant unproductive land
     •   Upgrade effluent storage facilities to eliminate spreading during the winter months
     •   Increase effluent area
     •   Conduct Soil Total N tests to determine most efficient use of nitrogen
     •   Constructed wetland with 63% removal of nitrates from a 7.6 ha catchment area
     •   Zero cultivation using direct drilling of PGG Wrightson Seeds Cleancrop varieties for all
         crops

Graphic 3.2: Methane emissions projected to 2030 target of 10% reduction

43
We continue to focus on improving cow efficiency and reducing wastage:
  • Improve reproductive performance (6 week in-calf rate to >78%,
WHY SOIL MATTERS FOR CLIMATE CHANGE - THE UNIVERSITY OF WAIKATO’S
RESEARCH ON OWL FARM

What are we doing?
In September 2020, the University of Waikato, in conjunction with the New Zealand Agricultural
Greenhouse Gas Research Centre (NZAGRC), established a field site on Owl Farm to study the effect of
turnip cropping and strip grazing on soil carbon (C) stocks.

We are using a two-pronged approach. Firstly, we are measuring and estimating all the major flows of
C into and out of the paddock(s) allowing us to calculate a carbon balance (Figure 1). This gives us
information on how big any change in soil C is and, perhaps more usefully, when any change likely
occurs. Our second approach is to measure soil C stock down to 60 cm before and after the turnip
cropping occurs. This will give us information on how much C is in the soil and at what depth, and is
complementary to the carbon balance information.

Figure 1: Generalised carbon cycling in a dairy system. Arrows that cross the boundary of the diagram
indicate where gains and loss of carbon from the pasture system occur. This of course differs between
farms.

45
Why is it important?
The over-arching goal of our soil C research is to understand how the management of agricultural
systems influences soil C, with the aim of identifying management practices that can increase soil C
stocks or minimise losses.

Our work at Owl Farm is aimed at determining how production and use of supplementary feed can
increase or decrease soil C. Investigating the consequences of grazing turnip crops on soil C builds on
our previous research into the consequences of importing a lot of supplemental feed and production
of maize silage. Importing supplemental feed to a farm can increase soil C stocks by a small amount
(~4% of the imported carbon in the feed is stored, but is spread over the entirety of the farm), and
maize silage production causes a large loss of soil C when rotated around a farm.

We hope to identify the best approach for producing extra feed from a soil C perspective that also
meets farmer needs.

Where are we at?
We established our field site in September of 2020 across a three-paddock block (total area of 5.4 ha).
Carbon balance measurements have been ongoing since then, although the data is yet to be
completely analysed. Turnips were planted in one of the paddocks in spring 2021 and were grazed over
~40 days during summer 2022. Since grazing ended in early February, the paddock has remained bare
and is due to be reseeded in early-mid March.

Despite the data not yet being completely analysed, one clear and expected trend is evident – since
grazing finished, the turnip paddock has been a source of C to the atmosphere (net loss of soil C) due
to the absence of any photosynthesising plants that provide inputs of C to the soil. Minimising the time
the paddock is bare reduces soil C losses, although we acknowledge that Waikato summer conditions
can make this challenging in the absence of regular rainfall.

Before establishing turnips, we collected soil samples from all three paddocks to determine the soil C
stocks for each paddock. Our data from this sampling indicated soil C stocks were 121, 129 and 141 t C
ha-1 for the three paddocks.

What’s next?
Our experimental work is planned to continue through the next two summers as each of the
remaining two paddocks are cropped with turnips. Carbon balance measurements will be ongoing
throughout this time to not only look at the effects of the turnip crop itself but also how the C balance
changes upon a return to permanent pasture. These crops will likely result in relatively large initial
losses of soil C but we will also determine how quickly this lost carbon is recovered in the years
following return to pasture.

Once this summer’s turnip crop paddock has been returned to permanent pasture, we will be taking
more samples to measure the soil C stocks for comparison with our initial measurements. A similar
process will be repeated once the other two paddocks are cropped in the next two summers.

Contact Information
For more information on our research please feel free to contact either Louis Schipper
(louis.schipper@waikato.ac.nz) or Aaron Wall (aaron.wall@waikato.ac.nz).

46
Next Farm Focus Day
                        Thursday 5th May, 2022

                       Weekly Farm Walk
                           Tuesdays, 10am

                          facebook.com/OwlFarmNZ

                           twitter.com/OwlFarmNZ

                                Owlfarmnz

     Subscribe to weekly updates by emailing enquiries@owlfarm.nz

47
You can also read