Thinking Outside the Milk Pail: The Heneghan’s Innovative Approach to Dairy Farming
Tom and Leanne Heneghan’s dream is to own their own dairy farm. Most people with this dream start in share milking, then buy a small farm and eventually sell that farm to buy a bigger one. Tom and Leanne’s journey started in share milking, but the similarities end there.
Instead, the Heneghan’s focused on creating a sustainable cash flow operation by leasing farms. They started share milking in 2009 and doubled milk production after leasing another farm in 2021.
“Our businesses now produce good cash flow, which helps us drive down our debt, which will one day enable us to buy a farm,” Tom explains. “This strategy allows us to manage our debt while growing our business so that we’re not at the mercy of interest rates and milk prices.”
Milk is the most important part of their business, but for innovative farmers like Tom and Leanne, that doesn’t mean it has to be the sole focus. Their approach to business includes taking as many calculated, educated risks and growth opportunities as they can. To this end, they recently expanded into stock to better utilise their assets and land.
The results speak for themselves. Not only have the Heneghan’s almost doubled their production, but they turned a profit in only the second season of their newest lease. Their beef and stock operations also now provide dividends.
What’s the key to this success? Their innovative mindsets and willingness to take risks. “We don’t accept the idea that the standard practice is the only way to go,” Tom says. “There could be better options if we just think outside the box. When we see an opportunity, and the financial numbers support it, we back ourselves and do it.”
It doesn’t hurt that they adore their jobs too. “We love working with cows. They are awesome animals, and it’s phenomenal what they do for us and what they produce,” Tom explains. “On the business side, we love the challenge of making the numbers work. For us, even a bad day on the farm is better than a good day in any other job.”
The other key element is surrounding themselves with agribusiness experts. Tom and Leanne meet with Nick Walls, Partner, and their bank manager regularly to discuss everything from new leases to tax compliance. “Nick is excellent to work with,” Tom says. “He’s not afraid to challenge us, to question what we’re about to do and why we’re doing it. He’s very familiar with farming—you just can’t beat that kind of experience for advice and insights into the industry. He gives us the confidence to pursue an opportunity.”
As for next steps, the Heneghan’s recently purchased 90 hectares of dairy support land and intend to build a house, continuing towards that dream of owning their own dairy farm.
Tom and Leanne Heneghan
