Are Contractors rates having to go up.

Kevtherev

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Location
Welshpool Powys
Always thought you were a bit of a rare 'un! 🤣🤣
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v8willy

Member
Mixed Farmer
we had a good system with our contractor, sat down and worked out probable bill for the year, divided it by 12, and standing order, if 'out' adjustment easily made. Worked a treat, and in return we had a very good service, things happen, and son took on the business, he didn't like owing me money, and couldn't quite get to grips with the arrangement, the end result, one of his best payers, ended up at the bottom of the list, while he chased either bad payers, doing them first, in the hope of a cheque, or new 'bad payers', looking to expand the business. He was suprised, when we left.
Lot of the dairy farmers do that now aparently, tho likely just on what has been done rather than running ahead of time, suits them with the monthly milk cheque.
 

Texel Tup

Member
Livestock Farmer
Location
North Norfolk
Two farms locally to me are now reliant upon Contractors ~ one I suspect sensibly, and the other most emphatically NOT.

Captain Sensible owns his land and he's struck up a deal with a contracting group. He takes a share of the crop and that is the end of his financial input.

The other guy ~ who is a tenant is prevented from entering in to the same arrangement as the other by his inherited and supposedly secure, tenancy agreement. Quite by chance, both are using the same group of contractors who are themselves, farmers. This chap pays an agreed rate every time that a wheel turns on his land, he is responsible for buying in all seed and spray and fertiliser ~ AND the group take 40% of his crop. Quite how he expected to survive, is a mystery and the reality is that the land-owners have talked/bullied him in to handing back his tenancy, a fact which has not pleased his son ……..

I worked for a contractor for a while, and he lived a constant battle fending off those who were irate because it seemed that he was being neglectful of his agreement ~ ~ well he would be FFS ~ he was attempting to serve 5 masters, whilst also managing his own crops.
 
Two farms locally to me are now reliant upon Contractors ~ one I suspect sensibly, and the other most emphatically NOT.

Captain Sensible owns his land and he's struck up a deal with a contracting group. He takes a share of the crop and that is the end of his financial input.

The other guy ~ who is a tenant is prevented from entering in to the same arrangement as the other by his inherited and supposedly secure, tenancy agreement. Quite by chance, both are using the same group of contractors who are themselves, farmers. This chap pays an agreed rate every time that a wheel turns on his land, he is responsible for buying in all seed and spray and fertiliser ~ AND the group take 40% of his crop. Quite how he expected to survive, is a mystery and the reality is that the land-owners have talked/bullied him in to handing back his tenancy, a fact which has not pleased his son ……..

I worked for a contractor for a while, and he lived a constant battle fending off those who were irate because it seemed that he was being neglectful of his agreement ~ ~ well he would be FFS ~ he was attempting to serve 5 masters, whilst also managing his own crops.

That arrangement can be varied though and I know people for whom it works well but not using the arrangement you outline.

The issue with your first model is that the farmer has little control over marketing/grain sales- he is, in effect, tied in. This may suit some but not others.

The second arrangement is far more complicated- I don't see why you wouldn't just pay a set fee per acre stubble to stubble and retain complete control? Buy your own inputs, have your own crop and accept your own risk?

The big stumbling block with stubble to stubble is where you have a farm with one huge combine that can't be in more than 1 place at a time. Also, if you have a hunking great Lexion you also need somewhere to be able to physically tip the grain, which might be an issue if you are a 1000 acre farm that has only ever had the ability to store or move grain from 1000 acres of crop. A top tier Lexion will bury you and suddenly you get two days cutting and can't cut anywhere else because you've nowhere to tip it. Even if you use third party grain storage you are relying on hauliers to get the stuff moved and at a busy time of year for them.


As an aside, I can't see how famers sons contractors can afford to do anything radically cheaper than a mainstream contractor can- the gear costs the same money whoever is buying it, surely?
 

Texel Tup

Member
Livestock Farmer
Location
North Norfolk
@ollie989898 ~ all that I'm doing is relaying the simple facts and as they are ~ it isn't a suggested scenario, it's how it is.

I hadn't given any real thought to your suggested problems of storage ~ and that adds yet another facet which cannot be ignored …….. all those involved in the contracting group are also tenants …….. perhaps sensibly, they haven't bought an acre-eating Lexion ~ yet.
 

SFI - What % were you taking out of production?

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  • 100% I’ve had enough of farming!

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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