An industry programme has helped fund and facilitate a hugely successful joint venture arrangement for two Carmarthenshire farming families.
Farmer Bryan Thomas commissioned John Crimes, a partner with agriculture consultancy CARA Wales, to help them map out the future strategic direction of the farm business to ensure its long term sustainability.
Ten years ago, Bryan and his wife Mary were made aware that they needed to start planning for the future as both their sons had followed careers away from the farm.
Originally tenants at Berllan Dywyll in Llangathen, which is today a 270-acre holding, the couple have been owner occupiers since the early 90s.
The farm is situated in the picturesque Towy valley, well known for its productive riverside grazing.
The couple, held in high regard within the local industry for their progressive approach to farming, have over the years steadily built up a predominantly pedigree Holstein dairy herd.
Liquid milk is sold to Muller on an annual contract with the high yield herd of 210 cows currently producing around 9,000 litres per cow annually.
In addition to providing the couple with business and technical advice, CARA Wales also spent time discussing how the Thomas' farm business could continue to thrive.
Bryan decided to trial introducing a new young farmer into the business some years ago.
The arrangement, however, didn’t work out to the satisfaction of either party, but he says he learnt a lot from the experience.
“You don’t necessarily find the ideal match the first time, but I was still open to finding a longer term solution than merely taking on an assistant herdsman on an employer/employee basis.”
“Both parties need to do research and take time to consider whether a joint venture would work out – probably a minimum six to 12 month trial period – or long enough to build up a good relationship, based on trust about your future aspirations.
“Without questioning your motivation and considering what both sides have to offer in terms of assets and skills, you risk ending up with different views on the future direction of the business and how it should be managed on a day to day basis,” he says.
John Crimes then introduced the couple to Dyfrig Davies, the younger brother of one of his local dairy clients.
He still describes Dyfrig as a 'dairy fanatic', and was impressed by the young farmer's work ethic and his commitment to dairy farming.
John soon realised that Dyfrig, who had worked at neighbouring farms from an early age, was an able herdsman who had acquired a huge amount of practical knowledge and hands-on experience.
Dyfrig, then in his early twenties, was single, living at home close to Berllan Dywyll, earning a good income from contract dairying and, as he freely admits, with few responsibilities in life.
John says the young farmer took some persuading that he also needed a long-term plan if he wanted to progress beyond being a contract herdsman, working long, demanding hours without prospect of any personal career development.
Fortunately, his older, more experienced brother Meurig, realised that mentoring was called for if Dyfrig was to have the confidence to take on the new challenge of working alongside Bryan.
The ‘match’ was made and ten years later, Dyfrig freely admits that Bryan’s offer was ‘the chance of a lifetime’.
The trial arrangement proved so satisfactory for both families, that months extended seamlessly into years.
In 2015, thanks to the support which had become available through the Welsh government's Farming Connect’s Venture programme, the partnership received fully funded business, financial and legal advice.
This enabled them to create a balanced formal agreement, working out how best to share both the rewards and risks of the joint venture.
John says: “Both parties received customised support which enabled them to address the technical and relationship-building aspects of creating a strong and successful business-to-business relationship so that they have a formal balanced agreement within an appropriate legal framework.”
Today, there is a four-strong partnership at Berllan Dywyll, and Dyfrig, now in his early thirties, is a full time farmer with a personal stake at farm.
Dyfrig, together with wife Anjulie and their two small sons, live in a spacious detached house, just a few hundred yards from the main farmyard.
For Bryan and Mary, the arrangement means they have been able to stay at their family farm while also scaling back their involvement and day to day commitment, knowing that the future direction of the farm will one day be in Dyfrig’s hands.
Both couples are equal partners in the business, and all major decisions such as capital investments are made democratically, with John Crimes facilitating round table discussions.
And farm profits are shared equally after pre-agreed salaries have been deducted.
Bryan said the relationship between the couples have gone from strength to strength.
“It is reassuring to know that we are all firmly focused on working together to create new opportunities which safeguard not only our respective livelihoods, but the future of the farm too,” he says.
Dyfrig says he feels 'very privileged' to be a partner in the business Bryan has built up over many years.
“We have a fantastic working relationship built on trust, friendship and mutual respect.
“It’s incredibly rewarding and motivating to know that I’m personally involved in the future prosperity of the business, not merely an employee,” he says.
Farming Connect, which is delivered by Menter a Busnes and Lantra, is funded by the European Agricultural Fund for Rural Development and Welsh government.
