Are Contractors rates having to go up.

[Pennine Ploughing]

The old expression ‘it’s a grey area’ will be the case more often than not. HMRC have almost given up on tractors haven’t they! Maybe the odd case but nothing meaningful.

Aye but with the tighten up of red use, they may well up their tactics, will it be worth it?

 

[Spud]

Contractors rates have never really been enuff & yes they will have too go up
What a lot of folks dont consider is the true contractor isnt a farmer & doesnt pick up any SUB on his work like the farmer does.
All farmers who go out contracting have a huge advantage to the man who doesnt have a Farm
NAAC rates aint where they should be neither.

In fairness the contractors only risk is the customer not paying - generally lower risk allows a lower profit margin to be acceptable

Much less guaranteed wage from a farm - input price volatility, output price volatility, weather variables etc

 

[som farmer]

More stock than then though.

as l see it, we are all running faster, on that hamster wheel, but getting less profit, for doing it.
UK farming, as in some other countries, has become a highly mechanised industry, and efficient.
Compared to many other countries, the opposite is the reality. To many farmers here, the SFP, is a must, many in the eastern parts of the EU, it is just a huge windfall, but they are classed as 'backward' farmers, still using horses as well, old /smaller kit etc.
Whose to say which way is the best living, l rather think it's them, the pressures on farmers here, is heavy, on them ?
We have been encouraged, bribed, or ordered, to produce large quantities of cheap food, the more produced, the lower the return, to actually achieve better prices, output must fall, not increased, to, 'spread the cost', unfortunately, to the guvs relief, that policy goes right against our natural instincts, however, the price of fert, and other imputs, might actually achieve that.

 

[Courier]

I always wanted one of those they looked amazing , but bought a Ford 5000 instead

We slogged on for years doing the silage ourselves , tack was costing a fortune by the end , had a New TW 15 trailers mowers the lot , then a local contractor turned up at the door one morningand left a price list on the table , have a look at that see what you think he said , was £22 acre to do the lot with a Class Self Propelled, that was the last year we did it ourselves

We were co-operating with three other dairy farmers where we supplied the essentials and they each supplied a man and tractor for carting and another to drive our mower when something similar happened and one of them decided that a contractor with a two mower set up and swather and a self propelled would do a better job - Result was that the rest of us had finished our 1st cut in good conditions and he had to wait a further 4 days of what was excellent weather for the heavens to open and then the self propelled to turn up and fill his pit with mush

 

[som farmer]

we supply a driver and tractor to our small contractor, when needed, what it actually means, our contracting bills are vastly reduced. But it goes so much further than that, our multi cut silage, is so much cheaper, he can pop down and do 20/30 acres, no problem, often just him, and pit man, we run his trailers, we get ours done, at the best time, because he relies on us, to help him out. The system works well, for us, but of course not everybody can do it !!!!

 

[Cab-over Pete]

The whys and wherefores of the situation don’t matter.

@puntabrava won’t be surprised to read I don’t agree with him. To say good riddance doesn’t help at all and to bother looking up R C Bakers liabilities means nothing. Mr Baker may have millions outstanding but may be earning triple that. Who knows? And it’s none of our business.

The important thing is that a well respected, well run and professional operation has felt the need to drop out. That could be for many reasons but most likely linked to costs, profitability and the stress of the job, which is a sad reflection of where we are in agriculture these days.

 

[puntabrava]

When a contractor travels 50 miles from his base and undercuts you by two or three hundred percent and a few years later they pack up with the accounts lodged you say good riddance.

 

[Cab-over Pete]

I can see that side of it, I’ve been undercut myself. I don’t mind their price quote, the more they do whilst losing money the better for everyone else in the long run, so I can seen why you might be pleased if Bakers did it to you.

Most often though, undercutting and the putting down of my business that goes along with it, is usually done by pratts who then arrive with shabby kit and a muppet driving it.

I don’t know any of the Bakers at all, but to my knowledge they had an excellent reputation, which is seldom gained by being cheap and cutting corners.

It sounds like you have more experience of them than me.

It is still a concern though that an agricultural business of that scale throws the towel in.

For the record, Bakers have stated they have not ceased trading for financial reasons.

 

[David.]

No autumn spreading won't have helped them stay keen on the job, surely?

 

[puntabrava]

I can see that side of it, I’ve been undercut myself. I don’t mind their price quote, the more they do whilst losing money the better for everyone else in the long run, so I can seen why you might be pleased if Bakers did it to you.

Most often though, undercutting and the putting down of my business that goes along with it, is usually done by pratts who then arrive with shabby kit and a muppet driving it.

I don’t know any of the Bakers at all, but to my knowledge they had an excellent reputation, which is seldom gained by being cheap and cutting corners.

It sounds like you have more experience of them than me.

It is still a concern though that an agricultural business of that scale throws the towel in.

For the record, Bakers have stated they have not ceased trading for financial reasons.

I have never heard a bad thing about the chap, only good but you have to speak as you find and he is the second past president of the naac to take good work off me for the detriment of both businesses.

 

[puntabrava]

There is no love lost between contractors, I had one ring me in the early 1990’s asking why I had just spent the best part of 40k on some Samson muckspreaders with crunch of the statement being “that I could be dead next week then what would happen”.
I thought it a tad dramatic as I was in my twenties.

 

[holywell farmer]

Seems everyone copycats others to loads of hedge cutters in north wales and verge trimming all trying to win contracts

 

[7610 super q]

There is no love lost between contractors, I had one ring me in the early 1990’s asking why I had just spent the best part of 40k on some Samson muckspreaders with crunch of the statement being “that I could be dead next week then what would happen”.
I thought it a tad dramatic as I was in my twenties.

Could have been worse........

 

[JeepJeep]

Seems everyone copycats others to loads of hedge cutters in north wales and verge trimming all trying to win contracts

All living the dream.

 

[7610 super q]

Isn't this the third large outfit to give up this year ?
Perhaps dozens give up every year anyway, I dunno..

 

[Cab-over Pete]

There is no love lost between contractors, I had one ring me in the early 1990’s asking why I had just spent the best part of 40k on some Samson muckspreaders with crunch of the statement being “that I could be dead next week then what would happen”.
I thought it a tad dramatic as I was in my twenties.

. Glad to hear you lasted longer than the spreaders!!
Or maybe you still have them?

 

[som farmer]

No autumn spreading won't have helped them stay keen on the job, surely?

don't think that is going to help anyone, from farmers, contractors or digestors, very ill thought out policy.

 

[bobk]

But what I was meaning, is will the ban on red apply to contractors carting to and away from ad plants

It's a valid point you make

 

[Wombat]

The thing is as a farmer we can only pay what we are invoiced, the guy who cuts our hedges is £30+ but he chooses the rates. Same with upto this this year the guy who baled and wrapped our sileage. No one goes into the petrol station and says i think 148.50 is too cheap the garage up the road is selling it for 150 can i pay you another 1.50 a litre.

Its upto the contractor to know their costs and charge accordingly.

 

[som farmer]

the whole of farming, really needs a 're-set', just to sort out the inbalances, will we get one ? Used to think no, but so many changes are happening, on the global scale, we just might see one, we definitely need one.