SCEPTICS WON OVER BY LOCAL MACHINERY RING
SCEPTICS WON OVER BY LOCAL MACHINERY RING
Should contractors regard
machinery rings as friend or
foe? Peter Hill asks one
operator about his change
of heart
WHEN Berks contractor Gary Short learned that farmers in his locality had got together to form a machinery ring, he was not especially taken with the idea that they would be providing each other with contracting services.
Nor was he impressed with the suggestion that Shorts Agricultural might itself become a member of the fledgling Thames & Kennet ring.
"I was sceptical about whether the ring would work and decidedly reluctantly to join," he says. "It wasnt so much the prospect of losing 2% of my contract charge to the ring, as the threat of losing control over the operation. I was concerned, for example, that if we were a day or two late getting to a farm with the silage crew for some reason, the ring would jump in with someone else."
Like many rings around Britain, the Thames & Kennet was set-up to take last-minute advantage of the co-operation grants available to such groups. That and to tackle the divergent trend in machinery and manpower costs and farm business income.
The ring recognised from the outset that contractors should be a part of the scheme; far from setting up in competition, machinery rings encourage the idea of getting someone else in to carry out tasks for which individual farms can not justify running their own machinery. In many instances, they say, using a contractor is the most appropriate solution.
Despite such arguments, however, Shorts Agricultural remained outside the growing organisation, which covers Berks and parts of Hants, Bucks and Wilts – until the day came when the ring provided the solution to a problem.
"Id resisted joining for three or four years because of my concerns," says Gary Short. "But then the ring helped us out by sourcing a Kemper header for a difficult maize harvesting season."
It was then that the gentle persistence of Thames & Kennets manager Michael Brown paid off, as he politely pointed out to Mr Short that he now had no choice but to join!
Both parties have since learned to work with each other. Mr Shorts fears have been unfounded, he now trades with the ring as both demander and supplier, and the ring logo is prominently displayed on promotional literature.
"The ring is clearly meeting a need for farmers to share resources where possible in order to drive down their costs," he says. "But it has not taken work away from contractors in my experience because, in terms of equipment, organisation and manpower resources, we still have the edge, especially when it comes to larger jobs."
It is also the case that some farmers simply prefer to use a contractor who, by the nature of things, must be committed to providing a service, rather than a neighbouring farmer whose principal motivation is to defray his own costs.
"We would always like to get more work through the ring; it represents a very small percentage of our £1.2m turnover from farm services," says Mr Short.
"But I think we get a reasonable share and Im bound to say I think the Thames & Kennet manager does a superb job in what is a difficult position trying to satisfy the different expectations of members."
Close ties
Shorts Agricultural started operations in 1985. It is still run as a separate business but has close ties with the plant hire and demolition business started by his father, and which Mr Short now also manages, as well as the waste recycling operations into which the business has diversified.
Operating from Planners Farm, Winkfield, near Ascot, agricultural services are focused largely on grassland operations, including grass and forage maize harvesting.
The equipment fleet includes a Claas-based self-propelled mower, a large capacity Krone rake, a Claas self-propelled forage harvester, and the essential tractors and trailers.
Other services include preparing and seeding new grass leys, big baling (with Welger and New Holland machines), bale wrapping (which is sub-contracted) and manure spreading.
"The agricultural and industrial operations are quite complementary, not only because both demand good organisational and machine management skills," Mr Short points out. "Being able to use tractors and some equipment across the different operations increases their earning power and helps justify ownership."
Tractors, for example, are needed for site haulage using dump trucks and landscape ground works and seeding. But it would be difficult to justify operating the well-specced New Holland and JCB models that Shorts run if they were not also needed for the agricultural work.
Similarly, the Richard Western tipping trailers get used for hauling green waste as well as forage crops, and the manure spreaders for spreading composted waste as well as the more traditional farmyard manure. Nor is it any problem providing the forage harvesting team with a road sweeping brush so that public roads can be kept clean; the plant hire business has several on its books.
The diverse nature of the Shorts business also gives fellow ring members access to non-agricultural equipment such as chippers, stone crushers and soil screeners that may, from time to time, find a use on farms.
Day-to-day organisation of the agricultural team is down to John Dabinett who also takes the wheel of the forage harvester during the summer.
"We have an excellent team, and one that I can leave to get on with the job if necessary," says Mr Short. "I keep track of whats going on the whole time, of course, but with a diverse business like ours, you have to be able to delegate responsibility."
While aiming to continue providing a cost-effective service to established and new customers, Mr Short says he is happy to book work through the ring when employed by other members.
"It needs everyones support; the machinery ring is clearly providing a useful function for many farmers in this area and we find it a reliable source of extra trailers and other equipment when we need it," he says.
Be realistic
His one appeal is for farmers trading as suppliers through the ring (or informally with neighbours) to be realistic when it comes to charges – not simply because it represents competition but because of pitfalls of earning what appears to be easy income from taking on a few contracting jobs and making a bit of money.
"Its when people are misled into buying bigger or more modern equipment and then find they have to chase work to meet the payments," he cautions. "Charges are cut to get the work but then the income may not even cover costs, let alone provide a profit. It has to be costed properly – machinery, manpower, the lot – and charged accordingly if there is to be any gain in the long-term." *
Gary Short: "The machinery ring is clearly providing a useful function for many farmers in this area and we find it a reliable source of extra equipment when we need it."