How are Agri-Contractors making money?

farawaygrass

Aravo wrote: »

The fella I know is also farming and does the lawns from probably April to Oct. As a part time operation it seems to work well for him.
No 20mins between jobs as he would generally cover the same area one one day and another on another day so can do more these days and less fuels costs. With people WFH it would be easier to get paid as people are about.
He has the same jeep and trailer for the past 10 years and minds it and same goes for lawn equipment so minimising costs here also.
If a lawn takes an hour to cut that would be extra.
If it rains and the lawn has to wait a few days then no problem. Not like if there was silage to be made and the contractor is late.

The biggest issue affecting him is the popularity of robotic lawnmowers.

Ya they are getting very popular and also not expensive really. Can only see them getting more popular.
It’s really an example how technology is doing away with work, there seems to be far less opportunities for little side hussles now

davidk1394

I got into it because I enjoy machinery. Only a small scale operation here but all the machines I work are above 2015. Thursday during the height of the heat and baling hay a chain broke on the baler and the netting system gave bother. The week before a massey dealer came into the yard and gave me a price on a trade in. If it was any other year I would have traded it in.

The break down cost my €200 in repairs and another €700 in lost bales as I had to get in another contractor. Contractors keep machines fresh to avoid that sort of hassel. I do hedge cutting during the winter to keep the tractor busy. I charge enough to make it viable, I lost 2 jobs because someone else under cut me. I was back in after 2 years because the other fella cut every wire in sight.


With all the machines I own I literally just draw a wage out of it and that's it. Same as a lot of them out there.

mycro2013

It is more about cashflow than profit, an unprofitable business with good cashflow can out preform a profitable company with poor cashflow.

Bass Reeves

mycro2013 wrote: »

It is more about cashflow than profit, an unprofitable business with good cashflow can out preform a profitable company with poor cashflow.

BS

Any profitable business will out preform an unprofitable one. Cash flow only takes you so far.

Mooooo

Unprofitable won't out perform a profitable one but poor cash flow management could hammer a profitable one as well.
At the end of the day if repayments weren't being made and food wasn't being put on the table most wouldn't be at it so they must be making something. Some like being paid out the gate, others come at specific times of the year, others you have to chase down nearly to pay, which is the one I can't quite figure out, but don't see how they could continue if they didn't make something out of it

mycro2013

Bass Reeves wrote: »

BS

Any profitable business will out preform an unprofitable one. Cash flow only takes you so far.

.

It's all about cashflow. If you dont have the money to pay commitments profitably isn't worth jack.

Henry...

mycro2013 wrote: »

.

It's all about cashflow. If you dont have the money to pay commitments profitably isn't worth jack.

Business is profitability first cashhflow second

Neddyusa

Henry... wrote: »

Business is profitability first cashhflow second

But if you've one without the other, you've nothing.

Dunedin

Mooooo wrote: »

Unprofitable won't out perform a profitable one but poor cash flow management could hammer a profitable one as well.
At the end of the day if repayments weren't being made and food wasn't being put on the table most wouldn't be at it so they must be making something. Some like being paid out the gate, others come at specific times of the year, others you have to chase down nearly to pay, which is the one I can't quite figure out, but don't see how they could continue if they didn't make something out of it

That’s about the size of it. I cannot understand how the pit silage men keep going with the costs involved for such a short season but obviously they are making something.

kevthegaff

Was talking to a big contractor who specialises in a few areas, I said how does he get on collecting money. He said farmers always pay, just Kent wouldn't want to need it! He also passed a remark dont deal with horsey lads:-D

kevthegaff

kevthegaff wrote: »

Was talking to a big contractor who specialises in a few areas, I said how does he get on collecting money. He said farmers always pay, just Kent wouldn't want to need it! He also passed a remark dont deal with horsey lads:-D

Keep a mile away from them.

Bass Reeves

Neddyusa wrote: »

But if you've one without the other, you've nothing.

There is no such thing as a profitable business without casflow. Cash flow may come in large volumes during shirt periods but the basic premise is the business must be profitable. House building is a case in point. Except for the housing bust in the 2008/13, I never but saw lads that were building houses making serious money

FintanMcluskey

Henry... wrote: »

Business is profitability first cashhflow second

Profitability is usually determined pre business set up

You would unlikely start up a business in the first place that won’t be profitable

Cash flow is critical, 80% of businesses that fail are caused by cash flow issues

Contracting in particular is asset rich but cash poor

lab man

FintanMcluskey wrote: »

Profitability is usually determined pre business set up

You would unlikely start up a business in the first place that won’t be profitable

Cash flow is critical, 80% of businesses that fail are caused by cash flow issues

Contracting in particular is asset rich but cash poor

Big thing is where in the country you are based I'm here in the west do mainly baling suckler lads just dont have money till sept while down the country the dairy lads get money each month big difference to the contractor

blue5000

kevthegaff wrote: »

Was talking to a big contractor who specialises in a few areas, I said how does he get on collecting money. He said farmers always pay, just Kent wouldn't want to need it! He also passed a remark dont deal with horsey lads:-D

Heard that one from old man Liffey too, must be a common problem.

Henry...

blue5000 wrote: »

Heard that one from old man Liffey too, must be a common problem.

What does it.mean

People who keep horses

Reggie.

Henry... wrote: »

What does it.mean

People who keep horses

Studs mainly.

MIKEKC

Grueller wrote: »

They are leases that are rarely bought out. Basically hiring machines.

Everything must be paid for at some point. O% finance has to be covered by the price.

Ryertex

kevthegaff wrote: »

Was talking to a big contractor who specialises in a few areas, I said how does he get on collecting money. He said farmers always pay, just Kent wouldn't want to need it! He also passed a remark dont deal with horsey lads:-D

Years ago a tradesman was asked to do a job for a farmer. He didn’t know the farmer so asked local vet who replied. When you’re driving up the lane and there’s cows in the field you can keep going, but if you see horses turn around and go home.

Henry...

Ryertex wrote: »

Years ago a tradesman was asked to do a job for a farmer. He didn’t know the farmer so asked local vet who replied. When you’re driving up the lane and there’s cows in the field you can keep going, but if you see horses turn around and go home.

What's that all about then

Most of the big operators in the horse world look like they're tight with money

Albert Johnson

Henry... wrote: »

What does it.mean

People who keep horses

The horsey world tends to attract a lot of "characters", it's one of few businesses that still operates with large amounts of cash transactions. Compared to cattle or sheep there isn't great traceability on horse's, combined with dealing in cash it's easy to use horse trading as a cover up for other nefarious businesses. I know a fair few horse people who are broken down cattle/sheep dealer's, known criminals or just general dodges.

There's some genuine great people in the horsey world and it would be totally unfair to tar them all with the one brush. However for the reasons outlined above and others the equine world seems to gather more than it's fair share of pricks.

Ryertex

Henry... wrote: »

What's that all about then

Most of the big operators in the horse world look like they're tight with money

It seems to be the case that when it comes to money, the horses take priority over everything else. I worked with a fella once who would spend 10 grand on a horse and drive a E500 car. Always breaking down.

Bass Reeves

Not too far from me is a 200 acre farm. Flaking land. It owned by a lad that has a few horses. Majority of horses that pass through his hands are useless. He be turning a few ponies and donkeys as well.not a screed of a fence or a blade of grass on the place. His few Cate would be breaking into everybody's else's place and the few cattle he have would be harmless. He be grazing a few cattle for a few lads.

You could not make 40-50k on cattle with a little effort. Everything from the house, to the sheds, cars and anything else around the place is falling down or falling apart. Usually gambling is part of it as well

Henry...

Had a contractor behind me there recently

I was doing the speed limit in the car

He was going mad blowing the horn and gesturing at me

Doesn't sound like a great job overall

How much did you owe him?

Henry...

Topgear on Dave wrote: »

How much did you owe him?

He was trying to pass in the tractor

Then again think he just wanted me to go faster , hard enough for them to overtake

Banana Republic 1

Easten wrote: »

As far as I can tell some of the contractors are making an absolute fortune and are taking the pss with the prices.
The prices I got quoted for hay bales this week was 7 for the round bale of hay and 85cent for the small square bale. I got a neighbors old square baler and done it myself. 1143 square bales for about 50 euros of diesel.

Did you pay yourself for the time spent

Mad_maxx

Henry... wrote: »

Had a contractor behind me there recently

I was doing the speed limit in the car

He was going mad blowing the horn and gesturing at me

Doesn't sound like a great job overall

How is that possible?

Tractors rarely go above 40 kph

Was it near a school

Bass Reeves

Mad_maxx wrote: »

How is that possible?

Tractors rarely go above 40 kph

Was it near a school

It might have been his land cruiser and browser.

Henry...

Mad_maxx wrote: »

How is that possible?

Tractors rarely go above 40 kph

Was it near a school

In a 50 zone seemed to be a fast tractor

Fils

Henry... wrote: »

Had a contractor behind me there recently

I was doing the speed limit in the car

He was going mad blowing the horn and gesturing at me

Doesn't sound like a great job overall

I’d have slammed on the brakes and leave his wallet pick up the mess.

Easten

Henry... wrote: »

Had a contractor behind me there recently

I was doing the speed limit in the car

He was going mad blowing the horn and gesturing at me

Doesn't sound like a great job overall

I'd have slowed down even more, drive the nut job mad

Jb1989

Easten wrote: »

I'd have slowed down even more, drive the nut job mad

I'd have pulled in to let him by,
sometimes it's as easy to let people on their way, than makeing a statement.

Fils

Jb1989 wrote: »

I'd have pulled in to let him by,
sometimes it's as easy to let people on their way, than makeing a statement.

Are you for real? That was road rage that the person experienced. You suggesting they should bend over and get rodded.

Jb1989

Fils wrote: »

Are you for real? That was road rage that the person experienced. You suggesting they should bend over and get rodded.

Depends how much under the 50 the motor driver was doing.
Yes I'd suggest pulling in if someone was in more of a panic than me.

Jb1989

Jb1989 wrote: »

I'd have pulled in to let him by,
sometimes it's as easy to let people on their way, than makeing a statement.

Me too. However, for the tailgater who just won't pass, I find the windscreen washer a blessing. After the second or third dose of it I find they stay back.

farawaygrass

[Deleted User] wrote: »

Me too. However, for the tailgater who just won't pass, I find the windscreen washer a blessing. After the second or third dose of it I find they stay back.

Tailgaters are often more of a problem than the slow moving vehicle in front

Reggie.

Fils wrote: »

Are you for real? That was road rage that the person experienced. You suggesting they should bend over and get rodded.

Yes pull in, why escalate the situation further. The man could be under pressure and/or having worked through the night or very early that morning.

Just pull in.

Let him on.

Call him whatever you want and move on.

Simples

farawaygrass

farawaygrass wrote: »

Tailgaters are often more of a problem than the slow moving vehicle in front

Usually yep.

Mad_maxx

if a tractor is blowing the horn behind you ? , you must drive like my aunty Mary who is eighty five and drives like its Sunday every day

Grueller

Fils wrote: »

I’d have slammed on the brakes and leave his wallet pick up the mess.

And have a tractor weighing 10 tonnes plus a four tonne trailer (if empty) or up to twenty tonnes (if loaded) go, not into your car, but probably across it. His wallet would never be able to clean up that mess.

funkey_monkey

https://www.agriland.ie/farming-news/table-contractor-association-releases-full-2021-guide-rates/

ruwithme

Jb1989 wrote: »

Depends how much under the 50 the motor driver was doing.
Yes I'd suggest pulling in if someone was in more of a panic than me.

Its the same folk always in a panic. Some of us can occasionally be also,but don't resort to road rage type behaviour on a highway on them days.

straight

Henry... wrote: »

Had a contractor behind me there recently

I was doing the speed limit in the car

He was going mad blowing the horn and gesturing at me

Doesn't sound like a great job overall

You should have pulled in out of the man's way. Be fiddling away in your own time like.

ruwithme

straight wrote: »

You should have pulled in out of the man's way. Be fiddling away in your own time like.

He was doing the speed limit. Doubt he was fiddling away.

I got me wings clipped recently on this forum for suggesting to another poster to trim a hedge back a touch less than a week after 28th February as ground was dry then as opposed to wet in February.

Seems protecting birds that had not even started nesting is more important than human life from some incensed motorist wanting to arrive a couple of minutes sooner through speeding on a road.

Have yet to see silage lost to weather from some lad arriving a few minutes later.

Henry...

It's a joke the amount of tractor drivers on the fone

It's like every second one is on the mobile

ruwithme

Henry... wrote: »

It's a joke the amount of tractor drivers on the fone

It's like every second one is on the mobile

Shur when they spend all the money on the shiny new paint work, they haven't any left for hands free technology. ( tell you " couldn't afford it")

Banana Republic 1

ruwithme wrote: »

Shur when they spend all the money on the shiny new paint work, they haven't any left for hands free technology. ( tell you " couldn't afford it")

Same as cars drivers, guards included, people are people

kevthegaff

No problem with someone chatting on the phone, but people messaging etc is lethal

blue5000

Thanks FM, so a ballpark for spring barley costs per acre is about €280 (incl. VAT) per acre just for the machinery hire cost.