“Rob’s was in Tirau, and mine was in Te Puke.
“We rented them out for five years, managed them ourselves, and made a really good profit.”
After this period, they avoided any potential tax under the bright-line property rule, choosing to sell the properties and use the cash to purchase their farm.
“We made around $200,000 in capital gains alone on each property by the time we sold,” Rob said.
“We had strong deposits, and since there were no opportunities to buy livestock at the time, we chose property.
“It was something we could manage ourselves, with fairly low risk and better time management.”
They had previously purchased their herd using the equity in their properties to 50:50 sharemilk 310 cows on Innes and Mandy Semmens’ farm in Matamata.
“It seems unrealistic now, but when we bought our cows, our interest rate on them was 2.8%,” Krystal said.
“We were paying next to no interest and managed to pay them off within the first year.”
The timing worked out well – they made and cashed in on these investments just before interest rates surged after the Covid-19 pandemic.
And the herd was well established, having been owned by the previous sharemilker.
Rob takes pride in his stockmanship.
The herd’s low somatic cell count enabled him to be selective when culling and selling surplus stock.
The stock sales also contributed to the farm deposit, as they reduced the number of cows by 65, leaving 245 currently milking.
Rob said they couldn’t have achieved all this without the guidance of those they met along the way.
This included farmers on a similar progression trajectory, whether through contract milking or sharemilking, often from groups such as New Zealand Young Farmers, or at DairyNZ events, as well as the encouragement and advice from their parents.
Some of these are friends Rob made when he moved to New Zealand from the United Kingdom 15 years ago, with whom he remains in touch.
“We surrounded ourselves with people who think similarly to us,” he said.
He credits their farming mentors, who have always been happy to offer advice, including Dave and Sue Fish, Sir Henry van der Heyden, Martin and Judith Bennett and Innes and Mandy Semmens.
“We’ve been lucky that we’ve come across so many good people that taught us skills along the way,” he said.
“We’ve had vast experience with different farming systems, and we appreciate how open the sector is to sharing knowledge and being transparent.
“There aren’t many other industries where you can go to someone’s house, and they’ll tell you everything about how they got to where they are,” Krystal added.
The Whitakers’ financial discipline and willingness to seek advice were crucial in securing their first farm in their 30s.
The Whitakers also credit the long-standing relationship they have with their bank manager, Aaron Bennett from ASB, who helped them along the way.
“When we came to him, he knew our farming history and how we are with money,” Krystal said.
“We almost couldn’t make it happen, but our relationship with him made all the difference.”
They have consistently budgeted throughout their farming journey by using the DairyNZ templates, calculating forecasts against actuals, updating monthly, and using benchmarking tools such as DairyBase.
They have also been disciplined with their spending and work closely with their accountant.
“If you’re not spending money, it stays in your back pocket, and we have been like that right from the get-go,” Krystal said.
Having a fixed payment structure during contract milking and later in sharemilking gave them certainty, making it easier to project their likely income.
Krystal, who grew up on a sheep and beef farm in the King Country, was working in the kiwifruit industry.
They relied on her off-farm income for living expenses, only taking minimal drawings from the farm business.
“For the most part, my income has covered our living expenses, while the farm runs itself,” she said.
Rob always had the goal of owning a farm.
He was 18 when he first came to New Zealand in 2008 for a work experience placement during his studies.
He grew up on a family dairy farm.
He returned to New Zealand in 2010 and has spent the past 15 years working his way along the progression pathway.
During their three years of sharemilking with the Semmens, he and Krystal considered upscaling to a larger farm or purchasing their own farm.
They’re pleased they pushed to make the leap to farm ownership.
The couple spent months looking for their first farm in late 2023, attending open days and looking online at properties that fitted their budget.
They were drawn to the farm’s rolling contour, which was a key factor in their decision to buy.
Many of the farms they inspected were either too steep, had run-down infrastructure or no opportunity for scale.
“This farm was the best we could afford with the contour,” Rob said.
“The infrastructure was there, and we could start making money right away.”
“The farm also fits the definition of a first farm with lots of scope to develop and improve it,” Krystal said.
They found the infrastructure suitable for the low-input system they wanted.
With pockets of trees and plenty of space, it was an ideal place to raise their young children, 3-year-old Thomas and 2-year-old George.
Buying the farm meant leaving Matamata and moving to Ōtorohanga, an area that was new to them.
Their advice to farmers aiming for farm ownership is to be ready for short-term sacrifices to achieve long-term goals.
“Push people, like bank managers, for scenarios and different [interest] rates, and use your accountant,” Rob said.
“And know your own numbers, so when you go to those people, you know where you are,” Krystal added.
While they’re pleased with what they have achieved so far, they see the farm as a stepping stone to a larger farm in the next five to 10 years.
“We would like to have a big enough farm [so] that Rob is not milking every day,” Krystal said.
“This is just a stepping stone to pay debt to get ahead and buy something else.”
In the meantime, they’re trying to create a better work-life balance for themselves and enjoy their family.
Originally published in Inside Dairy by DairyNZ