Contract Rearing of Replacement Heifers

Webinar

A Contract Rearing webinar took place on Tuesday, 14 January 2025,

Ruth Fennell, Teagasc covered the rearing arrangement and costs structure
Damien Barrett, DAFM spoke about the importance of considering TB in contract rearing arrangements
Paidi Kelly, Cork and John O’Connell, Leitrim discussed the contract rearing arrangement they have in place

What is contract rearing?

Contract rearing involves the movement of replacement heifers from the owner’s farm for rearing on contract by another farmer.

Since the abolishment of milk quotas in 2015 milk production has increased significantly. This has put limitations on the availability of land around milking parlours, farmyard facilities and labour. Therefore an increasing number of dairy farmers will look engage other farmers to rear their replacement heifers for them. This will release land on the dairy farm for milk production, provide more facilities and labour.

What makes contract rearing attractive to dairy farmers?

In addition to releasing land for milk production:

It could free up labour to specialise more on dairying;
It would suit farms where accommodation is limiting;
It could suit farms where heifers are failing to achieve the performance levels required.

What makes contract rearing attractive to rearers?

It could provide a steady monthly cash flow;
The business risks associated with drystock production are reduced;
It is potentially more profitable;
The demands of buying and selling are diminished or eliminated.

What information is available?

Teagasc has prepared a number of documents to support parties interested in the contract rearing of replacement heifers.

Some more detailed guidelines are contained in the Teagasc booklet “”. This document contains details regarding target liveweights, guideline costings, and advice on the risks involved and disease control.
See below for specimen heifer rearing contracts.

Specimen Agreements for the Contract Rearing of Replacement Heifers

Teagasc have prepared two specimen documents on contract rearing of dairy heifers.

A flat rate heifer rearing agreement.

This document outlines the key areas for consideration in contract heifer rearing including duration of contract, who pays for the different inputs and agreed rate of payment?
Download Flat Rate Heifer Rearing Contract March 2021 (PDF)

A weight bonus heifer rearing agreement.

The key difference in this document is that payment is linked to achieving agreed target live-weights at critical milestones in the heifer rearing cycle.
Download the document: Heifer Rearing Contract March 2021 Weight Bonus (PDF)

See also booklet in support of the specimen heifer rearing contracts.