A Cluster Farm brings together the land, water, livestock, machinery and human resources from more than one farm.
At its simplest, it could be one neighbour who is committed to continuing in the dairy industry leasing the farm next door: at its most complex, it would involve the resources of several properties under one management umbrella.
In the case of John and Bev Shepherd and Gino and Maria D'Augello at Kyabram, it involves the utilisation of two properties – one formally used for growing lucerne for the district's farms and the other a dairy property.
Neither party in the new partnership are strangers to the area. Gino was raised on a dairy farm located next door to his current 120ha property, while the Shepherds had previously farmed in Mooroopna North for 11 years until 2006.
The Shepherds sold their dairy farm to move to Port Macquarie, running some beef cattle and spending time on the ocean.
However, finding you're a long time retired, they decided to return to dairying in northern Victoria because of its affordability compared to western Victoria and NSW and because of their familiarity with it.
The Shepherds visited a handful of farms early last year, wanting to buy something that could run up to 300 cows. The farm they would eventually buy seemed financially out of reach as it could run 400-460 cows.
"It would have made things tight for us to finance the property and stock," John said.
"Otherwise it ticked all the boxes, it was two hours from Melbourne, five minutes from Kyabram, the dairy was good, it had a good layout and capacity for further development."
They met their accountant and friend, Gino, for lunch on the day they were returning to Port Macquarie.
On recognising the farm in the real estate flier they had with them, discussion would turn to Gino and Maria's desire to move into the dairy industry and how a partnership could help both parties.
Half their 120ha property had previously been leased but the lessee's decision to move on spurred Gino into exploring his options with the Shepherds.
John and Bev purchased the property last August and both couples formed a partnership – Shepello Farms – where costs and profits are shared equally.
The business purchased 300 crossbred cows and all decisions – including 12 water troughs that would be placed on the Shepherds' farm – are made in the best interests of the business and future returns.
Hay and silage produced on the D'Augellos' property is either used to feed the partnership's cows or sold. Dry cows and replacement heifers are also run on the property.
"Our skills complement each other," John said.
Gino manages his own accounting business in Kyabram and John said this experience was a big advantage as it provides a different point of view.
"I'm not pessimistic," Gino said. "I look for ways to complete the task, not why it can't be done."
John said: "The partnership gives us both a sounding board to bounce ideas off. We also have regular debriefing sessions, as well as sitting down at the end of the day and having a chat."
The partners were pleased to source 300 crossbred (Friesian-Jersey-Illawarra) cows all from one herd.
Their focus is on maximising milk solids per hectare and John said the crossbred cows had proven very economical. They will also meet their criteria of calving easily.
When John and Bev first moved to Australia from New Zealand, they were forced to buy their herd of 400 cows from 30 different properties and were pleased not to have to repeat this process.
They had to train their new herd to adapt from a rotary dairy to a Herringbone but have achieved this, in part by putting feed in bins in the dairy to encourage them to walk through and get used to the sound and smells.
The business has now employed two staff that work across the two farms and both partners are keen to expand the cluster concept down the track, using it as a vehicle to help young farmers move into property ownership.
