Holistic Approach Triples Farm Profit

After four years of practicing Holistic Management, Phil and Viv Gray have seen the health of their stock, land, bank account, and relationship improve.  The North Canterbury couple over winter around 2600 mixed age ewes and hoggets and 50 rising 2year old bulls on 300ha of rolling hill country near Waiau.  Holistic Management educator John King trained the couple in 2000.  Although initially sceptical, their experiences using the decision-making framework have taken them from strength to strength.

 Under intensive farming the Grays focused too much on lamb production.  “Getting the lambs up to weight was our sole focus,” says Phil.  “As a result, the ewes health packed up and their performance dropped.  We went from a lambing percentage of 146% to 110% in two years.”  Despite two difficult seasons, both scanning and lambing percentages have risen along with ewe weights and overall health.  Ryegrass staggers are now less of an issue, a situation Phil and Viv put down to pastures that are more than just ryegrass and white clover.

 With the focus on planned grazing and the emphasis on pasture recovery, pastures are regenerating.  “We tried spending our way out of debt with an extensive pasture renovation programme but just dug ourselves in deeper,” says Phil.  “With the planned grazing we are seeing red clover and timothy establish themselves in the paddocks.”  Because their pastures were regenerating, Phil and Viv decided to leave the local machinery syndicate.  This was a difficult decision as Phil’s father Hugh had helped set it up 25 years earlier.

 Although no longer cultivating, the soil is becoming of increasing interest to Phil.  “A couple of winters ago we lost 60 ewes over night.  I then read Percy Weston’s book about superphosphate poisoning pasture and that got me thinking.  Since then I’ve found out a great deal more about the minerals in the soil and we are now applying more lime because of the multiple benefits it brings.”  The Grays are experimenting with a range of biological fertilisers but Phil feels the chemical make-up of their soil is the limiting factor.

 What has really pleased them is how their financial situation has turned around.  Their net profit has tripled in four years.  In 2001 their net profit/ha was $108/ha.  In 2003 that had grown to $252/ha and for the 2004 season it is predicted to be around $300/ha despite a rising NZ dollar and the 2003 & 2004 seasons experiencing extremes in weather.  Total expenses, including interest have dropped from 71% of income in 2001 to 48% in 2003 and are expected to be around 40% in the 2004 season.  Their growth in net worth has also climbed from 1.3% in 2001 to an estimated 5.0% in 2004 season. 

 Phil and Viv are the first to say their returns are not overly spectacular, however, they are happy with the trend.  The predicted 2004 profit is about double the prediction for the Canterbury/Marlborough area by the Meat and Wool Innovation Economic Service.  It has been Phil and Viv’s realisation that stock policy has a greater influence on profitability than pasture renovation.  A readiness to drop store lambs mid spring and pick up stock early in the autumn to over winter has given them the flexibility to utilise pasture better and be in sync with their climate and landscape.  As a result they have become more entrepreneurial.  Key to their success is the ability to take advantage of the stock price cycle rather than worrying about which species to plant. 

 Phil and Viv have taken their time to incorporate Holistic Management practices.  Yet as certain pieces have fallen in place their enthusiasm has grown stronger.  The decision testing was the first thing they began mastering followed by the planned grazing.  They have since worked on their wealth planning.  They find the decision testing down to earth as it simplifies their lives and business in a very practical manner.   They are making a greater conscious effort with their spending and feel they are no longer tipping money into a pit trying to spend their way out of debt.  They have gained better financial scrutiny and control with their personal and farm spending. 

 Like many farming families they dabbled with one partner holding down an off-farm job.  Viv returned to nursing after a three year break in 1999.  “We had this extra income but we weren’t saving anything,” she stresses.  “It was like the money simply disappeared.”  Viv felt she lost touch with the daily happenings on the farm and wasn’t as involved in the farm business as she is now.  With the birth of their third son Hamish in 2001, Viv remained on the farm.  With the two older boys at school Viv is now looking to have a greater role in the farm business.  Last spring they tried a nurse cow enterprise and Viv will continue developing it this spring.

 As their communication improved so has their relationship.  As Phil says, “I use to keep the financial situation to myself and Viv would get upset because there wasn’t any money for the house.  Now we work through things together.”  “I know that when we go into a drought Phil will keep me informed about the situation,” says Viv.  “He doesn’t crawl into his cave and stop talking if we haven’t had rain for three weeks.”  As a couple they now experience less stress communicating to one another. They value open authentic communication as they juggle their business with raising three boys; Keagan (8), Liam (6), and Hamish (3). 

 Despite their initial scepticism, Holistic Management has helped Phil and Viv Gray bring order to their situation.  They feel they are now focusing with greater clarity on what they need for the longer term rather than swinging from one short term crisis to another.  As a result, their stock, pasture, financial, and relationship improvements are testimony to their practice of Holistic Management despite the current challenging climate. 

 Published in Country-Wide southern edition, March 2004