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Farm Business
Agricultural Matters
Are Contractors rates having to go up.
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<blockquote data-quote="ollie989898" data-source="post: 7835088" data-attributes="member: 54866"><p>That arrangement can be varied though and I know people for whom it works well but not using the arrangement you outline.</p><p></p><p>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.</p><p></p><p>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?</p><p></p><p>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.</p><p></p><p></p><p>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?</p></blockquote><p></p>
[QUOTE="ollie989898, post: 7835088, member: 54866"] 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? [/QUOTE]
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Are Contractors rates having to go up.
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