Investing for success

Eddie Kenna reckons he’s a bit of a “tight arse” when it comes to spending money on the farm, but his wife Sharon begs to differ.

“He likes new things,” Sharon says, while Eddie thinks his priority is reducing debt and making sure every dollar spent is a good investment.

A review of what they’ve done at their Sisters farm in recent years indicates there’s a bit of truth on both sides.

The farm has come ahead in leaps and bounds, and there are plenty of “new things” that have proven to be good investments.

In 2014, Eddie and Sharon purchased the farm from his parents Jimmy and Maureen, who still live on the property and help out when needed, especially during calving.

The 600-hectare Fernlea Park farm peaked at 840 milkers this year, up from about 640 in 2014.

Over the past six years, the Kennas have invested in a new block in 2017 that has been re-fenced and re-tracked, a 100-kilowatt solar panel system on the dairy, a new effluent pond and irrigation system, feedpad and a tilt crush, and heat detectors will be added before the end of the year.

They have also added some beef to the mix — although not at the expense of the dairy operation — and have continued rock clearing and pasture replacements.

“I’m a bit of a tight arse and don’t like spending money unless it’s going to get me a return,” Eddie admits.

“I always say we’re going to consolidate and pay down some debt, but then something pops up,” he adds, while Sharon says: “When you sit down and think about it, it’s a lot in six years, but we don’t tie a noose around our necks; we make sure we can do it within reason.”

The advances have been beneficial and the farm continues to enjoy good production boosted by a favourable season.

The solar panel system is already proving its worth and is on track to be paid off within 3.5 years.

“We had a 5-kilowatt system that did virtually nothing,” Eddie said.

“I’d been looking at it for five to 10 years but it got to the point where the solar incentives for the panels were at the sweet spot.”

“It’s probably shaved about 40 per cent off the power bill,” Sharon added.

“It’s especially good when we’re irrigating out of the big dam. The bills were massive in summer so that has helped.”

Incentives from production company Bega inspired the new effluent pond and irrigation system, which doesn’t cover a huge amount of the farm but has been helpful since 2015.

A new feedpad was installed with soil from the dam site, adding to feed options over winter.

The tilt crush has allowed staff to safely treat lameness and the rock crushing and removal has allowed significant safety and access improvements, along with opportunities for pasture renovation and replacement.

The new block has allowed the herd to expand.

“We thought we were pushing a bit too hard with young stock and needed a bit more land,” Eddie said.

“When you get a new piece of land you’ve got to drive it to pay it off.”

The 60-unit rotary was built 10 years ago and is coping with the bigger herd, although Eddie wonders if 70 might have been a better option.

Two workers are needed to cover each milking. The farm has two full-time and two casual employees, plus the Kennas’ four children pitch in to help and Jimmy and Maureen do most of the calf rearing.

The herd was 80 per cent Friesian and 20 per cent Jersey, but with fertility, health and lameness problems, so they went to a three-way cross of Jersey, Friesian and Aussie Red.

“We crossed everything and added the Aussie Reds a couple of years later and it’s the best thing we’ve ever done,” Eddie said.

“They are producing around 530-550kg MS and their average weight is around 490-500 kilos so they’re doing over a kilo per bodyweight, which is where we wanted to get to.”

Eddie said doing the right thing with pastures and diet were the keys to the farm’s success.

He mostly uses perennials but has had some trouble getting them to persist, so has been moving to more persistent varieties like phalaris, fescues and cocksfoot.

“We’ve been clearing rocks since 2006; you more-or-less destroy the paddocks and then re-sow them.”

The rocks have been put into piles or recycled into many things such as garden ornaments and foundations for sheds.

“It’s allowed us to get machinery in to spray it and sow it,” Eddie said.

“It has given us a lot more flexibility and it’s safer; you can now ride motorbikes on it.”

The herd diet is about 60 per cent home-grown grass, supplemented by 1.8 tonne of grain per cow and usually some vetch and cereal hay.

“We got to a point a few years ago where we buying more than what we wanted because we’d gone up in cow numbers and the ratio was starting to get out a bit,” Eddie said.

“That’s where this new block helped balance it out.”

Spurred on by their children — Henry wants to be a beef farmer — they have used about 200 doses of beef semen this year and look set to continue.

“We’ve done a few budgets and it could work so we’re going to play around with it,” Sharon said.

However, it’s not a long-term plan to replace dairy; it’s just for diversification.

“The boys were keen and pushed it a bit,” Eddie said.

“There have been many hours of perusing AI books. The boys had a few and sold some privately and some went to market.

“Based on the current land we won’t be able to do too much, but we can get agistment and it won’t affect the dairy numbers.

“Dairy is still our main business.”