I don’t
You charge a first fee that covers all your costs?
I don’t
YesYou charge a first fee that covers all your costs?
How much is that then...?
My opinion is that when people charge less it encourages cutting corners. I’m not saying everyone would cut corners but I think it is sensible to pay a fair rate for what the job costs, then everything else on top is profit.You charge a first fee that covers all your costs?
For instance if someone thinks that they are tight on their contracting fee they might put all of their feet on in 2 doses rather than 3, or miss out a fungicide application, or cut the contract farm when it’s wet and do their own when it’s dry etc etcMy opinion is that when people charge less it encourages cutting corners. I’m not saying everyone would cut corners but I think it is sensible to pay a fair rate for what the job costs, then everything else on top is profit.
YesIsn't that what the profit share is designed to do, incentivise the contractor to do a good job and not cut corners
They are still incentivised by the profit share.Isn't that what the profit share is designed to do, incentivise the contractor to do a good job and not cut corners
They are still incentivised by the profit share.
I would agree if this is the case don’t mess about 40 miles away at risk of upsetting them!Your agreements sound good deals!! All of our CFA clients expect us to have skin in the game - i.e. Contractor’s initial charge set below the operational cost. Keep those farmers close by you!!!!!!
I think broadly they end up in the same place as if you take a low contracting fee, the splits just get altered slightly. I just feel it’s the right thing to do for the farmer to pay the contractor the right amount for the work they do.Your agreements sound good deals!! All of our CFA clients expect us to have skin in the game - i.e. Contractor’s initial charge set below the operational cost. Keep those farmers close by you!!!!!!
Totally agree, of course they do - you’ve successfully reduced your risk profile and that’s a good place to start from!! All the best for the coming season! TJI think broadly they end up in the same place as if you take a low contracting fee, the splits just get altered slightly. I just feel it’s the right thing to do for the farmer to pay the contractor the right amount for the work they do.
This CFA business sounds like a mugs game tbf.
This CFA business sounds like a mugs game tbf.
This CFA business sounds like a mugs game tbf.
Why do you say fbts are so bad? I’d much prefer it if all of my contract farms were on fbts if the returns were the same and you decide what rent you’re willing to pay after all.I think they mostly are ! Only slightly less so that FBT’s which are the ultimate mugs game
However in partnership with the right land owner they can work well ...... you have to be picky about who you work for !
Why do you say fbts are so bad? I’d much prefer it if all of my contract farms were on fbts if the returns were the same and you decide what rent you’re willing to pay after all.
Well there’s usually an idiot who’ll do the same on a contract farm isn’t there?Because most people pay way to much rent (if you dont someone else will ) and their short term nature encourages farmers to become mining operations rather than farmers
All ours have been going for a long time. 2 of them for 30 years! All nearby and all really good relationships with good dialogue, it’s been very profitable in the not so distant past.I think they mostly are ! Only slightly less so that FBT’s which are the ultimate mugs game
However in partnership with the right land owner they can work well ...... you have to be picky about who you work for !