Today marks the end of what has been dubbed a draconian clause in the dairy industry's standard sharemilking contract.
Federated Farmers is launching its Herd Owning Sharemilking Agreement, minus the 'set-off' clause.
This gave farm owners the right to instruct their dairy company to withhold up to 75 percent of the milk payment due to a sharemilker during a dispute.
Federated Farmers sharemilker employers chair Tony Wilding said the clause is outdated, draconian and a blight on the dairy industry.
Federated Farmers sharemilker chair Neil Filer said he hopes the new agreement would go a long way to reducing disputes and partnership breakdowns.
"When you're going into a business agreement like herd owner sharemilking, you want to dot your i's and cross your t's right at the start. There are so many variables in different farms and different situations, you really want to get all your ducks in a row heading in and then you'll have a long and easy relationship.
"There's two different parties involved, there's a lot of money involved ... so you really want to make sure you get that thing sorted."
Mr Filer said the new agreement also offers greater clarity around dealing with feed shortages and surpluses.