Essex contractor bankruptcy

Farmer Roy · Nov 28, 2019

Bossfarmer said:
surely the only way to do it sustainably is to only contract with the kit you need for your own farm that way you are already needing a drill/muck spreader/combine etc, do a bit of work for others to help pay for the kit and then the cost per acre for doing your own is next to nothing

that is pretty much the model that many Australian farmers who also do contract work, follow
That is why I got into contracting, as I couldn’t justify the expense of a new zero till planter or a decent S/H tractor when I first started farming for myself. Contracting allowed me to pay for it & have modern, suitable gear for my own farming operation

A bit different if you aren’t a farmer though I suppose

Bossfarmer · Nov 28, 2019

Farmer Roy said:
that is pretty much the model that many Australian farmers who also do contract work, follow
That is why I got into contracting, as I couldn’t justify the expense of a new zero till planter or a decent S/H tractor when I first started farming for myself. Contracting allowed me to pay for it & have modern, suitable gear for my own farming operation

A bit different if you aren’t a farmer though I suppose

i dont see how you can actually pay the kit, staff and make a decent profit if you arent

Johnnyboxer · Nov 28, 2019

Bossfarmer said:
surely the only way to do it sustainably is to only contract with the kit you need for your own farm that way you are already needing a drill/muck spreader/combine etc, do a bit of work for others to help pay for the kit and then the cost per acre for doing your own is next to nothing

What happens if there are no farmers who want to do a bit of Contracting?
The industry would be stuck with full time Farm Contractors who just do all the work for the farmers, who have little interest in owning/driving big tackle, especially in the livestock sectors - who concentrate on looking after stock and not driving machinery

Johnnyboxer · Nov 28, 2019

Bossfarmer said:
i dont see how you can actually pay the kit, staff and make a decent profit if you arent

Plenty of Pro Full Time Farm Contractors do a great job and do make money

Just remember BF.................you don't need a SUBSIDY, in life......................to make a profit on what you do

Plenty of profitable businesses, that make a good living on their own 2 feet and operate in the agricultural/rural arena - outside just farming

Most of the farmers I speak to, who have diversified to things out of agriculture/on the fringe of Farming have one BIG regret.............that is 'why didn't they do it sooner'

Drillman · Nov 28, 2019

Bossfarmer said:
surely the only way to do it sustainably is to only contract with the kit you need for your own farm that way you are already needing a drill/muck spreader/combine etc, do a bit of work for others to help pay for the kit and then the cost per acre for doing your own is next to nothing

Yes if you already have a farm, the kit and are happy to make a small amount of extra money whilst sitting down listening to the radio.

However if you don’t have a farm it can be a bit more challenging. However if your prepared to get out the cab and get hot,cold, wet and dirty there’s plenty work out there. The chap who does my Fencing for example. He doesn’t have his own farm but manages to make a living contract fencing, but only because he’s good at it. Same goes for the chap who mills our cattle feed and also the chap who comes to trim our bulls feet.

None of them have shiny paint or GPS controlled tractors but all seem to make a living.

8100 · Nov 28, 2019

I near set myself up with a hedgecutter tractor and one of the small round balers as there are horsey folk a plenty here in the shire. This was around 2003 .We had a farmers son who came in and helped us out on the compost who had the same idea and tried it .He saved me a load off grief looking back by saying its not worth it .Lucky escape i suppose so god knows how these big contractors must sleep at night with a big shed of new kit and overdrafts as long as phone numbers . And then there is Johny new boy going around undercutting everyone it must be a nightmare contracting these days .When the greenwaste shredding was up for tender i was finding wire ropes concrete and all sorts hidden in the pile on demo days. Good luck to anyone trying to soldier on i say

Still Farming · Nov 28, 2019

Weather,Diesel, wages ,very late payers ,breakdowns, etc.etc not good too.

JP1 · Nov 28, 2019

Bossfarmer said:
surely the only way to do it sustainably is to only contract with the kit you need for your own farm that way you are already needing a drill/muck spreader/combine etc, do a bit of work for others to help pay for the kit and then the cost per acre for doing your own is next to nothing

That depends

1. Is there a risk you'd prejudice your own operational timings to honour contract commitments
2. Will the machine wear out faster and / or depreciate faster

Wilberforce · Nov 28, 2019

Drillman said:
Yes if you already have a farm, the kit and are happy to make a small amount of extra money whilst sitting down listening to the radio.

However if you don’t have a farm it can be a bit more challenging. However if your prepared to get out the cab and get hot,cold, wet and dirty there’s plenty work out there. The chap who does my Fencing for example. He doesn’t have his own farm but manages to make a living contract fencing, but only because he’s good at it. Same goes for the chap who mills our cattle feed and also the chap who comes to trim our bulls feet.

None of them have shiny paint or GPS controlled tractors but all seem to make a living.

The guy who makes a living from doing yours and others fencing is dependant on who farmers who do receive subsidy. Like it or not it's trickle down economics. To use a Star Wars analogy the BPS really is the 'Force' which fundamentally truly guides us all.

d williams · Nov 28, 2019

JP1 said:
That depends

1. Is there a risk you'd prejudice your own operational timings to honour contract commitments
2. Will the machine wear out faster and / or depreciate faster

I shouldn’t
Your own work comes first!!!
Priced correctly those costs should be covered

S J H · Nov 28, 2019

principal skinner said:
We are owed 5k for beef animals from ten years ago, the person in question is now a salesman for a local machinery dealer, funnily enough he hadn’t dropped in for a chat yet to see if we need anything. I’ve a long memory and my day will come

I reckon I'd only need one guess. ?

Bossfarmer · Nov 29, 2019

Johnnyboxer said:
Plenty of Pro Full Time Farm Contractors do a great job and do make money

Just remember BF.................you don't need a SUBSIDY, in life......................to make a profit on what you do

Plenty of profitable businesses, that make a good living on their own 2 feet and operate in the agricultural/rural arena - outside just farming

Most of the farmers I speak to, who have diversified to things out of agriculture/on the fringe of Farming have one BIG regret.............that is 'why didn't they do it sooner'

see what happens to the contractors if the subsidy cheque stops coming especially those with the big fendts and lexion combines, i myself diversified by developing steadings but as far as farm shops etc go, too many about now and margins for those in many diversified sectors are dropping as more people jump into them

Pheasant Surprise · Nov 29, 2019

Farmer Roy said:
that is pretty much the model that many Australian farmers who also do contract work, follow
That is why I got into contracting, as I couldn’t justify the expense of a new zero till planter or a decent S/H tractor when I first started farming for myself. Contracting allowed me to pay for it & have modern, suitable gear for my own farming operation

A bit different if you aren’t a farmer though I suppose

What are you interest rates like at the moment?
(I don’t mean the bulsshit RBA headline rate but real world rates)

Farmer Roy · Nov 29, 2019

It varies a bit depending on personal, home or business loans, as well as an individual businesses “margin”

my overdraft rate is currently 5.85%, which is historically quite low
I have spent more years at over 10 % ( 12 something about the highest I have personally paid. Thankfully I missed out on the above 20% rates of the 80’s )

holywell farmer · Nov 29, 2019

betweenthelines said:
Amazed that more contractors aren't going bust. If TFF is anything to by, there are only two types of contractor-those that constantly say they aren't making any money and those that have no idea how much it costs to run a machine 'cos every time they do a job they post a new "How much should I charge for......." thread

8100 said:
I near set myself up with a hedgecutter tractor and one of the small round balers as there are horsey folk a plenty here in the shire. This was around 2003 .We had a farmers son who came in and helped us out on the compost who had the same idea and tried it .He saved me a load off grief looking back by saying its not worth it .Lucky escape i suppose so god knows how these big contractors must sleep at night with a big shed of new kit and overdrafts as long as phone numbers . And then there is Johny new boy going around undercutting everyone it must be a nightmare contracting these days .When the greenwaste shredding was up for tender i was finding wire ropes concrete and all sorts hidden in the pile on demo days. Good luck to anyone trying to soldier on i say

The verge cutting in North Wales at least 4 contractors put tenders in for Flintshire and that's a low paid job too

JeepJeep · Nov 29, 2019

holywell farmer said:
The verge cutting in North Wales at least 4 contractors put tenders in for Flintshire and that's a low paid job too

Plenty of shiny metal on it though.

holywell farmer · Nov 29, 2019

JeepJeep said:
Plenty of shiny metal on it though.

Flintshire a couple of years ago put trimming at fixed rate for the contractors bidding for it

holywell farmer · Nov 29, 2019

JeepJeep said:
Plenty of shiny metal on it though.

On separate subject jeep jeep Flintshire are cutting back on road works

8100 · Nov 29, 2019

holywell farmer said:
Flintshire a couple of years ago put trimming at fixed rate for the contractors bidding for it

Are Floods plant hire still going over your way nr Hawarden ?

JeepJeep · Nov 29, 2019

holywell farmer said:
On separate subject jeep jeep Flintshire are cutting back on road works

In what way? State it's all in they have been for a while. Yet they turned up at 8pm on a Friday to fill a pothole in... Half a tub of instamac , whack it run over with pick up and onto the next.

Essex contractor bankruptcy

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0 %

Up to 25%

25-50%

50-75%

75-100%

100% I’ve had enough of farming!

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