INTERIM GRAZING AGREEMENT FOR RELOCATED LIVESTOCK

IN THE EVENT OF A NATURAL DISASTER

AGREEMENT made this day of20___

BETWEEN:

1. THE STOCK OWNER

Name: ……………………………………

Address for service ………………………………………………………………………………..

Telephone: ………………………………… Mobile: ……………………………………………

Email: …………………………………………

GST number: ………………………………..

2. THE HOST FARMER

Name: ……………………………………

Address for service ………………………………………………………………………………..

Telephone: ………………………………… Mobile: ……………………………………………

Email: …………………………………………

GST number: ………………………………..

Background

As a result of a disaster declared on dd/mm/yyyy, the parties agree that the Host Farmer shall temporarily graze the Stock described in the Stock Scheduleon the Land described in this Agreement and on the terms and conditions set out in this Agreement.

WARNING: This agreement has been prepared by DairyNZ Limited as a guide only. Professional advice should be sought before using this agreement to ensure that it meets the particular needs and circumstances of each party to the agreement. While DairyNZ Limited has taken every reasonable care in preparation of this agreement, DairyNZ Limited does not accept liability for any errors it may contain or any liability which may arise for any party using this agreement. Without limiting the foregoing, this agreement should not be used without legal advice if there is any possibility that the Stock will be on the Host Farmer’s land for more than one year.

TABLE OF CONTENTS

1.TERMS

2.AGREEMENT

3.TERM OF AGREEMENT

4.BIOSECURITY

5.MILKING COWS

6.PAYMENT OF GRAZING FEES

7.CALVES BORN TO THE STOCK

8.MATING

9.OBLIGATIONS OF THE STOCK OWNER AND HOST FARMER

10.OTHER RIGHTS & OBLIGATIONS

11.CANCELLATION OF THIS AGREEMENT

12.RESPONSIBILITY FOR STOCK

13.DISPUTE RESOLUTION

14.SPECIAL CLAUSES (if any)

STOCK SCHEDULE

1.TERMS

In this Agreement, unless the context otherwise requires:

1.1"Agreement" includes any schedule forming part of this agreement;

1.2"Commencement Date" meansthe ______day of ______20____

1.3“Land” means the land situated at ______(address of farm)

and legally described as(area) hectares more or less being

(Full legal description of land e.g Lot and DP numbers)

and being all the land comprised in Certificate of Title(s):

______

______

(list Certificate of Title identifiers – use additional pages if more space required)

in______Land Registration District;

(specify Land Registry e.g. North Auckland, South Auckland, Gisborne, Hawkes Bay, Taranaki, Wellington, Marlborough, Canterbury, Otago as it appears on Certificate of Title)

1.4“Like Stock” means stock which is in all respects as similar as is reasonably practicable to the dead, missing or stolen stock, including as to sex, breed, age, condition score, BW, and pregnancy status and which is disease free and sound in body.

1.5"Stock" means the relocated stock identified in the Stock Schedule;

1.6 “Termination Date” means:the______day of ______20______

2.AGREEMENT

2.1The Host Farmer shall take in the Stock to be grazed on the Land in accordance with the conditions of this Agreement.

3.TERM OF AGREEMENT

3.1This Agreement shall commence on the Commencement Date and end on the Termination Date unless previously terminated by either party in accordance with the terms of this Agreement (“Term”).

4.MILKING COWS

4.1All milk produced by the Stock and all proceeds arising from such milk are deemed to be the property of the Host Farmer.

4.2In consideration of the Stock Owner agreeing to clause 5.1, the Host Farmer agrees that no grazing fees are payable by the Stock Owner to the Host Farmer for the grazing of those Stock in milk.

4.3The Host Farmer is not under any obligation to herd test the milking Stock.

5.PAYMENT OF GRAZING FEES

5.1The Stock Owner shall pay a grazing fee of $_____ (excluding GST) per cow per day for any cow not in milk.

5.2While a cow is in milk no grazing fee shall be payable for that cow.

5.3Grazing fee for all other stock shall be $______per head per week.

5.4Grazing fees shall be paid in arrears on the last day of each month from the Commencement Date.

5.5Non-grazing costs

If the Stock Owner requests that the Stock be mustered to the yards for udder checks or drenching or any other reason, the Host Farmer may charge $1/head up to a maximum of $60 both excluding GST (“yard fees”). Yard fees are payable at the same time as the next instalment of grazing fees is due or on demand by the Host Farmer.

5.6The Stock Owner will pay interest at the rate of 12% per annum on any payment due to the Host Farmer under this Agreement which is in arrears calculated from the due date for payment to the date of actual payment.

6.CALVES BORN TO THE STOCK

6.1All progeny of the Stock remain the property of the Stock Owner and will be subject to this Agreement.

6.2The Host Farmer/Stock Owner(delete one)will bear the cost of rearing heifer calves born to the Stock.

6.3All calves shall be reared by the Host Farmer in a manner considered good practice.

6.4The Stock Owner may negotiate with the Host Farmer any extra terms, including payment for the rearing of any chosen bull calves.

7.MATING

7.1After consultation with the Stock Owner, and by mutual agreement, artificial insemination (AI) shall be initiated for milking cows in a timely fashion after calving.

7.2Sires chosen for AI shall be by mutual agreement between the Stock Owner and the Host Farmer.

7.3The Stock shall be mated in a manner that corresponds with normal industry standards. In the event of a dispute over the timing or method of mating, the Host Farmer shall make the final decision.

7.4Mating detail certificates shall be kept by the Host Farmer and made available to the Stock Owner upon request.

7.5The costs of mating the Stock shall be paid by the Stock Owner/Host Farmer (delete one).

8.OBLIGATIONS OF THE STOCK OWNER AND HOST FARMER

8.1Stock Owner's Obligations

a.The Stock Owner shall make available to the Host Farmer full and complete information on any animals known to be dangerous or diseased or which are subject to any Government stock movement restriction order.
b.The Stock Owner will ensure that all Stock comply with NAIT requirements for movement notification (clause 10.2).
c.The Stock Owner will pay cartage costs one way/both ways(delete as applicable)associated with transport of Stock to and from theLand.
d.The Stock Owner shall during the Termwhen requested by the Host Farmerpromptly remove from the Land any Stock found to be suffering from any disease, sickness or any other ill-thrift and arrange for the treatment of any injured Stock and meet all veterinary expenses.

8.2Stock Owner's Warranty

a.The Stock Owner warrants that all vaccinations and other treatments required by good husbandry have been given to the Stock at the appropriate times prior to delivery of the Stock to the Land and that none of the Stock is suffering from any infectious disease or ill thrift.

8.3Host Farmer's Obligations

a.The Host Farmer shall not knowingly turn out to pasture on the Land any animals known to be dangerous or diseased or which are subject to any Government stock movement restriction order or are not accompanied by appropriate movementdocumentation.
b.The Host Farmer will pay cartage costs one way/both ways(delete as applicable)associated with transport of Stock to and from the Land.
c.The Host Farmershall feed, care for, milk and manage the Stockin accordance with good farming practices. Without limiting the foregoing, the Host Farmer will ensure the control of all internal and external parasites and undertake any other treatments required by good husbandry.
d. If at any time the Host Farmer shall have knowledge or notice that any of the Stock is apparently suffering from illness or accident the Host Farmershall immediately give notice of the same to the Stock Owner, and in the case of urgency and the Stock Owner not being available, call in a veterinary surgeon (if available) at the expense of the Stock Owner.
e.The Host Farmer shall ensure that the Stock, if dry,have access to water of sufficient quality and quantity to satisfy daily requirements of 35 litres/cow/day, or 70 litres/cow/day if lactating.
f.The Host Farmer will ensure the Land on which the Stock are depastured has adequate subdivision and that all fences and gates of the fields are in a reasonable state of repair at the Commencement Date and will be maintained during the Term in that condition. Internal subdivision will be by electric fences.
g.The Host Farmer will provide on the Land a loading race with suitably metalled access. All facilities shall be in keeping with thetotal number of Stock carried on the Land.
h.The Host Farmer must not permit any third party to remove any of the Stock from the Land without the Stock Owner’s prior approval.

8.4Host Farmer's Warranty

a.The Host Farmer warrants that the Land has no history of brucellosis or tuberculosis for the twelve months immediately preceding the Commencement Date and has not been subject to any Government stock movement restriction during the same period.

9.OTHER RIGHTS & OBLIGATIONS

9.1Access to Stock

a.The Stock Owner shall have the right to inspect the Stock at any time upon not less than 24 hours’ notice to the Host Farmer. The Stock Owner must not unreasonably interfere with the Host Farmer’s farming operation.

9.2NAIT Compliance

a.The Stock Owner shall ensure that on delivery all Stock are individually identified as being the property of the Stock Owner in accordance with the Stock Schedule.

b.The Stock Owner shall record a sending movement to NAIT of the Stock within 48 hours of their relocation to the Host Farmer.

c.The Host Farmer shall record receipt of the Stock to NAIT within 48 hours of their relocation to the Land.

d.All calves born to the Stock remain the property of the Stock Owner.

e.The Stock Owner shall provide appropriate NAIT ID tags for calves born to the Stock that will be kept for rearing. The Host Farmer will correctly identify and tag such calves born to the Stock.

f.Bobby calves born to the Stock shall be tagged with direct-to-slaughter tags issued by the meat processing company. The Stock Owner shall receive the net revenue from such sales.

9.3Rejection of Stock

a.The Host Farmer may refuse to accept delivery of any Stock if the Host Farmer believes, on reasonable grounds, that such Stock are diseased or dangerous.

10.CANCELLATION OF THIS AGREEMENT

10.1The Stock Owner shall have the right at any time to uplift any or all of the Stock after giving the Host Farmer no less than five working days’ notice.

10.2The Host Farmershall have the right at any time to give five working days’ notice to the Stock Owner to remove any or all of the Stock from the Land.

a.The return of the Stock to the Stock Owner upon expiry or cancellation of this Agreement shall be without prejudice toeither party’s rights and remedies arising prior to expiry or cancellation of this Agreement.

11.RESPONSIBILITY FOR STOCK

11.1Risk in Stock

a.Subject to clause 12.2, all Stock shall continue during the Term to beat the risk of the Host Farmer. The Host Farmer shall take reasonable precautions for the care, safety and security of the Stock.

11.2Stock Dead, Missing or Stolen

If during this Agreement any of the Stock die or are lost, missing, or stolen, then the Host Farmer shall compensate the Stock Owner as follows:

a.For Stock which are lost, missing, or stolen, the Host Farmer shall provide the Stock Owner with Like Stock.

b.For Stock deaths attributable to a breach by the Host Farmer of this Agreement or attributable to the Host Farmer’s negligence,the Host Farmer shall provide the Stock Owner with Like Stock.

c.Subject to clause 12.2b, the Host Farmer shall not be liable for any deaths due to facial eczema or occurring within 7 days of arrival. The Host Farmer shall, if required by the Stock Owner, produce a veterinary certificate for any stock which die, at the expense of the Host Farmer.

11.3Straying animals and claims for trespass

a.The Host Farmer warrants that all the fences and gates of the fields in which the Stock are to be depastured are in a reasonable state of repair. The Host Farmer shall ensure that all fences and gates of the fields on the Land in which the Stock are depastured will be maintained in a reasonable state of repair throughout the Term. The Host Farmer shall indemnify the Stock Owner against any claim which may be made against the Stock Owner in consequence of any trespass by the Stock.

11.4Condition of Stock upon return to the Stock Owner

a.The Host Farmer shall take all reasonable steps to ensure that the body condition score of the Stock remains the same or better than as at the Commencement Date, allowing for normal seasonal variation in body condition score.

12.DISPUTE RESOLUTION

12.1Meeting

a.The parties shall first seek to resolve any dispute concerning this Agreement by promptly meeting together with the intention of reaching an acceptable solution to the dispute.

b.If an acceptable solution to the dispute is not agreed to by the parties within 10 working days of the dispute having been first notified to a party by the other then either party may at any time invoke the mediation process pursuant to the following clause.

c.Either party may by written notice (called a mediation notice) to the other party require that the dispute between the parties be referred to mediation. A mediation notice shall set out the nature of the dispute but need not provide any further detail in relation to the dispute.

d.The service of a mediation notice shall not prevent the dispute from being resolved by negotiation and consultation between the parties.

e.The parties shall endeavour to agree upon and appoint a single person as mediator no later than seven days from the date upon which the mediation notice was served.

f.If the parties fail to agree upon a mediator within 5 working days of service of the mediation notice, then a mediator will be appointed by the Arbitrators and Mediators Institute of New Zealand Incorporated (“the Institute”).

g.When a mediator is appointed he or she shall in consultation with the parties settle the timetable and the procedures to be adopted during the mediation. The decision of the mediator on any timetabling and procedural matters shall be binding on the parties and in particular the mediator shall be entitled to call any meeting between the parties at such time and place as the mediator considers appropriate after having discussed the same with the parties.

h.The parties shall attend all meetings called by the mediator and at such meetings shall take part in the negotiations in good faith and use their bestendeavours to reach an agreed solution. If any dispute is not resolved bywritten agreement within 20 working days of the date of service of the mediation notice, the dispute shall then be resolved by the procedure set out in the following clause.

12.2Arbitration

a.Any dispute to be resolved under this clause shall be referred to arbitration by notice by either party. The arbitration shall be settled by an arbitrator sole if one can be agreed upon by the parties.

b.If the parties fail to agree upon an arbitrator sole within 15 working days of service of any arbitration notice referred to in clause 13.2(a), then the Institute will appoint an arbitrator sole.

c.The arbitration shall be conducted pursuant to the Arbitration Act 1996 and any amendments or successor legislation. The award of any arbitrator shall be final and binding on the parties.

d.While any dispute remains unsolved the parties agree to continue the performance of this Agreement to the extent that such performance is possible given the nature of the dispute.

12.3General Terms of Dispute Resolution

a.Any information or material or settlement proposals (‘dispute information’) included or made during a meeting, mediation or arbitration are made on a without prejudice basis.

b.Dispute information and the existence of the dispute shall be kept strictly confidential subject to disclosure on a confidential basis to advisors and as required by law.

c.Both parties shall participate in the meeting, mediation and arbitration process on a best endeavours and good faith basis.

13.SPECIAL CLAUSES(if any)

(Any special clauses should be attached, numbered consecutively and initialled by the parties.)

SIGNEDby the Stock Owner:
Signature
Print Full Name
SIGNEDby the Host Farmer: / Date
Signature
Print Full Name
Date

STOCK SCHEDULE

(Describe stock by identification tag, age of animal, type and breed and/or attach Livestock Improvement cow listing and/or other means of identification)

NOTE: For "type" show as described in clause 1.20, and for weight and/or condition score weigh a sample of cows, i.e. every 10th cow)

Initial Stock List
Relocation Date: / Dd/mm/yyyy
NAIT visual IDs / Age / Type / Breed / Weight and/or BCS at relocation / Status when relocated (lactating or dry) / Calving date / Calf NAIT visual ID / Sex/fate of calf

Attach herd records to the contract,if available

Stock Return List
Return Date: / Dd/mm/yyyy
NAIT visual IDs / Age / Type / Breed / Weight and/or BCS at return date / Status when returned (lactating or dry) / Calving date / Calf NAIT visual ID / Sex/fate of calf

JQC-470772-172-6-v1