Payout joy eases couple's stress | Northland News | Local News in Northland

When Mangawhai dairy farmer Andrew Fleming heard the increased Fonterra payout forecast  yesterday, he said he  thought: "That's a solid statement - dairying is starting to recover."

His main emotion was relief. He and his wife Angelea own three farms and are "well-leveraged", with their equity pushed to the upper end to enable them to borrow money.

Their prospective income boost will help stabilise the value of their properties, ensuring they can cover the high operating costs all dairy farmers face.

Andrew, 44, and Angelea are among the talented breed linking farming and business skills and who are expanding their stake in the increasingly hi-tech dairy industry as ageing cockies call it a day.

The Flemings bought their first farm after being judged Taranaki Sharemilkers of the Year in 1997. They put a manager on it in 2003 when they moved to Tapora, 30km southwest of Wellsford, where they lifted production on a 160ha, 385-cow farm.

In 2006 they bought 150ha at Te Arai, near Mangawhai, where they milk about 330 cows, and in a busy weekend's work in June last year they sold the Tapora farm and bought another 194ha at Mangawhai, where they have 380 cows.

"The opportunity was there to exchange the Tapora property for one within the district we live which had a higher per hectare value," Andrew said.

But with production last year the worst in their experience, dealing with farm costs adjusted to the record $7.90 a kilogram of milksolids pre-recession payout had been difficult, accumulating deficits in their farm operating accounts.

Andrew said the payout forecast increase had been music to his ears, relieving stress and restoring his optimism in dairying.