Contract farming agrements for 2020 season

glasshouse

Member
Location
lothians
As long as you’re not paying more than the local average FBT then fairness is in play I’d say 💁🏼‍♂️ No one’s making you sign 🤷‍♂️
Haha
Once you are on the cfa treadmill with machinery finance charges, you certainly have to keep signing.
Its like bernie madoffs ponzi scheme, once u start, u cant stop, regardless of the consequences for the people you displace.
 

Brisel

Member
Arable Farmer
Location
Midlands
Haha
Once you are on the cfa treadmill with machinery finance charges, you certainly have to keep signing.
Its like bernie madoffs ponzi scheme, once u start, u cant stop, regardless of the consequences for the people you displace.

Once you’ve signed up to pay for kit with a longer period than your CFA or FBT you’re very exposed unless you run much older kit with no outstanding finance and low depreciation. I get that.

As for the displacement of farm staff, you cannot stop adapting to the changing circumstances. If the farm was that profitable then they wouldn’t need to lay anyone off and call in a contractor, would they?
 

glasshouse

Member
Location
lothians
Once you’ve signed up to pay for kit with a longer period than your CFA or FBT you’re very exposed unless you run much older kit with no outstanding finance and low depreciation. I get that.

As for the displacement of farm staff, you cannot stop adapting to the changing circumstances. If the farm was that profitable then they wouldn’t need to lay anyone off and call in a contractor, would they?
What about tenants being thrown off? They are not staff
And if u run older kit you wont even sniff the job. Landowners want full on shiny tractor porn nowadays
 

Brisel

Member
Arable Farmer
Location
Midlands
What about tenants being thrown off? They are not staff
And if u run older kit you wont even sniff the job. Landowners want full on shiny tractor porn nowadays

Landowners have their own reasons for wanting to take land back in hand. Hardly the contractor’s fault.

As long as the contractor can get the job done, it doesn’t matter how old the gear is. New gear frequently means they need higher charges!
 
Once you’ve signed up to pay for kit with a longer period than your CFA or FBT you’re very exposed unless you run much older kit with no outstanding finance and low depreciation. I get that.

As for the displacement of farm staff, you cannot stop adapting to the changing circumstances. If the farm was that profitable then they wouldn’t need to lay anyone off and call in a contractor, would they?
There is no point us "wage slaves" trying to argue with "king of the tenants" we're all wrong!;) :X3:
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
Contract farming customers are happy to take risk when they feel there is none yet faced with the reality of a year like 2020 are good at throwing toys out the pram ! ......... truth is you can’t have your tax cake and eat it ! Trading risk means EXACTLY that

my biggest annoyance is they seem to believe rubbish talked by others about yields etc (see my article in the last Direct Driller magazine !)


that said even in a year like 2020 a landowner should still have seen a positive return at harvest prices and now we are well over £200/t that return should be reasonable......... with bps how can a landowner not make a profit frankly when agreements have a landowner prior share ??? The looser is the contractor who will have little or no profit share this year, just his costs covered by his prior share, at least no one should actually be loosing money however

Going forward with ELMS I think a farmer is going to be an essential part of facilitating the claim

I can’t help think that an attitude shift re scale is required for many ? It’s the way a lot of farmers have tried to reduce fixed costs ( been there myself) yet truth is it rarely REALLY achieves that. Areas farmed (for food) will drop but so will the number of active farmers, I’ve turned down opportunities to take on additional land recently and I’m actually looking forward to not farming bits that really probably shouldn’t be farmed ....... that will improve my efficiency more than scale ever could, I plan to pick and choose who I contract farm for very carefully and I would never enter into a contract farm agreement where I could loose money ........ that would be crazy bad business

I watched the Michael Horsch Christmas interview recently and honestly was laughing at some of the comments they seemed so out of touch with were we are clearly going now
 
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ajd132

Member
Arable Farmer
Location
Suffolk
Contract farming customers are happy to take risk when they feel there is none yet faced with the reality of a year like 2020 are good at throwing toys out the pram ! ......... truth is you can’t have your tax cake and eat it ! Trading risk means EXACTLY that

my biggest annoyance is they seem to believe rubbish talked by others about yields etc (see my article in the last Direct Driller magazine !)


that said even in a year like 2020 a landowner should still have seen a positive return at harvest prices and now we are well over £200/t that return should be reasonable......... with bps how can a landowner not make a profit frankly when agreements have a landowner prior share ??? The looser is the contractor who will have little or no profit share this year, just his costs covered by his prior share, at least no one should actually be loosing money however

Going forward with ELMS I think a farmer is going to be an essential part of facilitating the claim

I can’t help think that an attitude shift re scale is required for many ? It’s the way a lot of farmers have tried to reduce fixed costs ( been there myself) yet truth is it rarely REALLY achieves that. Areas farmed (for food) will drop but so will the number of active farmers, I’ve turned down opportunities to take on additional land recently and I’m actually looking forward to not farming bits that really probably shouldn’t be farmed ....... that will improve my efficiency more than scale ever could, I plan to pick and choose who I contract farm for very carefully and I would never enter into a contract farm agreement where I could loose money ........ that would be crazy bad business

I watched the Michael Horsch Christmas interview recently and honestly was laughing at some of the comments they seemed so out of touch with were we are clearly going now
There is definitely a sweet spot when it comes to area. The main thing about any of these agreements is the people involved and being on the same page. I’m pleased we didn’t get some that we went for in the past.
 

ajd132

Member
Arable Farmer
Location
Suffolk
You just dont get it.
The contractor has massive fixed costs and needs to get the job even if it costs him money.
If twonks like that werent around the tenants would be left alone .
Local estate threw a tenant off, within a yr both his wife and son were dead
All the work was handed to another man who then promptly died.
Not all are like that.
 

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