Purchasing Machinery

RH15LEW

Member
I’m after a bit of advice, i recently started a small contracting buisnes, by small, i mean one tractor and Guttler Greenmaster. After a discussion with father tonight, he has asked if i would be interested in purchasing the farm’s baler, rake and wrapper to expand the buisness a little with the existing contracts the farm had. As a one man operation, Dad has offered a tractor and himself for any contracting work in exchange for me doing any baling etc on the farm F.O.C. Diesel is currently and will be supplied by the farm with records taken for what i use.

My dilema is that there is one contractor in the area who pretty much has the monopoly when it comes to round baling. In order for this to work it would need to generate more contracts, but farms tend to stick with the same contractor year after year. Capital for purchasing is not an issue, but my thought is is it worth the risk?
 

Drillman

Member
Mixed Farmer
I've done contract round baling for over 20 years. but have come to the conclusion going forwards it's a dead duck, too much good used kit out there that's available for farmers to buy there own. I think blackgrass is playing a part as well. Because a lot of folks are now very cautious of who brings what from where onto the farm.
 

Mursal

Member
With good will between the two of you it will probably work fine.
But do the sums, even if you don't get more additional work (worst case)
Good luck with it.
 

Skimmer

Member
Mixed Farmer
Location
North Notts
I’m after a bit of advice, i recently started a small contracting buisnes, by small, i mean one tractor and Guttler Greenmaster. After a discussion with father tonight, he has asked if i would be interested in purchasing the farm’s baler, rake and wrapper to expand the buisness a little with the existing contracts the farm had. As a one man operation, Dad has offered a tractor and himself for any contracting work in exchange for me doing any baling etc on the farm F.O.C. Diesel is currently and will be supplied by the farm with records taken for what i use.

My dilema is that there is one contractor in the area who pretty much has the monopoly when it comes to round baling. In order for this to work it would need to generate more contracts, but farms tend to stick with the same contractor year after year. Capital for purchasing is not an issue, but my thought is is it worth the risk?
You pay your Dad for the tractor & hours, he pays you for the baling at whatever rates you both wish to work for otherwise there we be a family fall out.
 

RH15LEW

Member
Don't try and steal the current mans customers, quickest way to make things sour. Contractors work better with each other rather than against each other!

Rather than round baling like every other bloke in the country, is there a niche you could get into? Think outside the box a little.

Depending on how well you know the other contractor, I'd be approaching him first to see if you can mop up his overspill.
No point trying to compete with him. Far better to work together.

I worked for the contractor for years, so I could say I know him pretty well! My plan was not to get into the baling side of things and look at things not in the area, hence the greenmaster. It'll be a good idea to have a word with him, just not rely on his work.
 

puppet

Member
Livestock Farmer
Location
sw scotland
Don't try and steal the current mans customers, quickest way to make things sour. Contractors work better with each other rather than against each other!

Rather than round baling like every other bloke in the country, is there a niche you could get into? Think outside the box a little.

Agree with that. Too many examples of buying some kit then trying to find customers.
 

RH15LEW

Member
You any good at decorating? Always seems the best trade. Old van £1500, ladders, table, few scrapers, brushes and a paper stripper £1000 and off you go at £20 an hour.
Same price as a man and a Fendt.

Don’t think i’d last long only being able to do half the walls! Being in a wheelchair has it’s uses sometimes, plus i hate the job!
 

spikeislander

Member
Location
bedfordshire
How about a round bale chaser or specialise in clearing the fields? Sounds like plenty of people baling ?
But as always there’s always a chance for someone to do things better , be reliable, honest and it will happen . But walk before you run , lots of little steps, and know what jobs to turn down .
 

Kingofgrass

Member
Don’t bother doing what everyone else is doing,do something different you’ll make more money!we have dairy farms,we brought a vredo drill few years ago brilliant bit of kit,I was getting mithered to death by seed firms/farmers to go do some for them so did a few before u know it your flat out doing it I don’t advertise all word of mouth,advertising will probably get the bad payers!i can do 60acre a day charge 22.50 an acre use about 3/4litres diesel an acre that includes travelling there and back with a Vario John Deere.its a good earner far better than hedgecutting baling and anything else of the usual work.so try and do something a bit more different you’ll be better off
 

balerman

Member
Location
N Devon
Depends on the customers to a large degree.For contract baling and wrapping you just need maybe 6 customers that do around 1000 bales each,you will soon get to know how each other works.Not so good if you are picking up bits and pieces here and there cos if you get an extended wet spell they will all want you at the same time,you will struggle to keep 30 farmers happy in a short window while you can keep 6 going.
 

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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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