“Getting it sorted” – a guide to avoiding and dealing with disputes for participants in the 50/50 sharemilking agreement

Sharemilking is unique to dairy farming in New Zealand. It is an excellent form of employment for less experienced dairy farmers with the main objective of building up a strong asset base relatively quickly while not having to purchase land. For dairy farm owners that want to free up capital yet retain a reasonable income from the property employing a sharemilker often is the best way to achieve these aims. In order to put this guide together I have talked to many sharemilkers, farm owners, consultants and legal personnel in order to get a broad perspective from across the industry. The ideas regarding avoiding disputes are theirs. The idea of this guide is to help people avoid disputes by being proactive before the contact is signed and during the term of the agreement, to outline some of the least understood Clauses in the 50/50 agreement, and to ensure that you know what options are available if a dispute arises.